SushiSwap | Sushiswap Exchange | Official Site - GitBook
SushiSwap Docs is the official documentation for the SushiSwap Protocol, a decentralized exchange for swapping, lending and earning rewards. Find out how to use the protocol, its
Last updated
SushiSwap Docs is the official documentation for the SushiSwap Protocol, a decentralized exchange for swapping, lending and earning rewards. Find out how to use the protocol, its
Last updated
SushiSwap is a decentralized exchange (DEX) built on the Ethereum blockchain and other blockchains such as Polygon, Binance Smart Chain (BSC), Avalanche, and Fantom. It is a fork of Uniswap and operates in a similar way, enabling users to swap, trade, and provide liquidity for various cryptocurrencies in a decentralized manner. SushiSwap is a key player in the DeFi (Decentralized Finance) space and offers a range of features such as yield farming, staking, and more.
Decentralized Trading (DEX)
SushiSwap allows users to trade tokens directly from their wallets without the need for a centralized intermediary. This reduces the risk of hacking and loss of funds that comes with centralized exchanges.
It is a peer-to-peer trading platform, where users can swap tokens like Ethereum (ETH), Bitcoin (BTC), stablecoins, and other ERC-20 tokens, as well as tokens from other supported blockchains.
Automated Market Maker (AMM)
SushiSwap uses an AMM to facilitate trading. Users can trade tokens against liquidity pools (collections of tokens locked in smart contracts), rather than using order books like traditional exchanges.
Liquidity providers (LPs) deposit tokens into these pools and earn a share of the transaction fees generated from trades.
Yield Farming and Staking
Yield farming: Users can provide liquidity to SushiSwap pools and earn rewards in the form of SUSHI tokens or other cryptocurrencies. By staking their LP tokens in SushiSwap's "Onsen" program, users can earn extra rewards in addition to the transaction fees.
Staking: SushiSwap also offers staking of SUSHI tokens, where users can stake SUSHI to earn more SUSHI tokens. This allows users to participate in governance and earn passive rewards.
SUSHI Token
The SUSHI token is the native governance token of the SushiSwap platform. Holders can participate in the governance of the protocol, voting on proposals and decisions related to the development of SushiSwap.
SUSHI holders can earn rewards through staking, and the token is used to incentivize liquidity provision.
SushiSwap "Kashi" Lending and Borrowing
Kashi is SushiSwap’s decentralized lending and borrowing platform. Users can lend their tokens to earn interest or borrow tokens by providing collateral.
It enables lending with the option to borrow assets on SushiSwap without needing to trust a central authority.
SushiBar
The SushiBar is where users can stake their SUSHI tokens to earn more SUSHI tokens. This helps support the SushiSwap protocol by distributing rewards to users who help secure the network through staking.
Miso Launchpad
SushiSwap also operates Miso, a decentralized launchpad designed to help projects launch their tokens on the platform. Miso offers tools for token creation and launch, allowing DeFi projects to raise capital and liquidity.
Cross-Chain Support
SushiSwap supports multiple blockchains beyond Ethereum, including Polygon, Fantom, Avalanche, Binance Smart Chain, and more. This provides a wider range of opportunities for users and helps SushiSwap compete with other multi-chain DEXs.
No KYC/AML
SushiSwap does not require Know-Your-Customer (KYC) or Anti-Money Laundering (AML) procedures, allowing users to trade without revealing their identity. This ensures user privacy.
Connect Your Wallet
To start using SushiSwap, you'll need a supported crypto wallet such as MetaMask, WalletConnect, or Coinbase Wallet.
Once you have a wallet, connect it to SushiSwap by selecting the "Connect Wallet" option on the SushiSwap website or app.
Trade Tokens
After connecting your wallet, you can easily swap one cryptocurrency for another. Just select the token you want to trade, the token you want to receive, and enter the amount.
SushiSwap will show you the exchange rate, the fees involved, and the estimated time for the transaction.
Provide Liquidity (Liquidity Pools)
If you want to become a liquidity provider, you can deposit tokens into one of SushiSwap's liquidity pools. In return, you’ll receive LP tokens, which represent your share of the pool.
You’ll earn a portion of the fees generated by trades that occur in the pool, as well as rewards in SUSHI tokens.
Yield Farming (Onsen)
After providing liquidity, you can participate in yield farming by staking your LP tokens in the "Onsen" program. This will allow you to earn additional rewards in SUSHI tokens or other tokens offered by the platform.
Staking SUSHI
If you hold SUSHI tokens, you can stake them in the SushiBar to earn more SUSHI. This allows you to participate in governance and gain rewards for helping to support the SushiSwap protocol.
Participate in Kashi Lending
If you wish to lend or borrow tokens, you can use Kashi on SushiSwap. Provide collateral to borrow tokens, or lend your tokens to earn interest.
Use Miso Launchpad
If you're interested in DeFi projects, you can participate in token launches via the Miso Launchpad. Miso allows projects to raise funds and liquidity, and users can participate in token sales.
Trading Fees: SushiSwap charges a 0.3% fee on each trade. The fees are distributed to liquidity providers (LPs) and SUSHI stakers.
Liquidity Provider Rewards: By adding liquidity to the pools, you earn a share of the trading fees plus rewards in SUSHI tokens.
Gas Fees: Since SushiSwap operates on the Ethereum network (and other chains), users will need to pay gas fees when interacting with the platform, especially on Ethereum.
SushiSwap has undergone security audits by reputable firms, and while no protocol is entirely risk-free, it has built a solid reputation in the DeFi space. However, users should always be cautious when interacting with DeFi platforms:
Risk of Impermanent Loss: If you're providing liquidity to a pool, there is a risk of impermanent loss if the prices of the tokens in the pool change significantly.
Smart Contract Risks: As with any decentralized platform, SushiSwap is built on smart contracts, which are vulnerable to bugs and exploits.
Phishing: Always ensure you’re on the official SushiSwap website and be cautious of phishing sites.
Vs. Uniswap: SushiSwap and Uniswap are very similar, but SushiSwap differentiates itself with additional features like yield farming, staking SUSHI, and its governance model.
Vs. PancakeSwap: While PancakeSwap is on the Binance Smart Chain and offers lower fees, SushiSwap supports more blockchains and has a broader range of services such as Kashi (lending/borrowing) and Miso (launchpad).
SushiSwap is a leading decentralized exchange in the DeFi space, providing users with the ability to trade, earn rewards through liquidity provision and staking, and participate in governance. Its features like yield farming, lending, and token launches make it a comprehensive platform for users looking to engage with the DeFi ecosystem.
