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Sushi (SUSHI)

Sushi (SUSHI)

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A DeFi Liquidity Provision Platform Built on Top of Ethereum.

Sushi (SUSHI) Fact Sheet

  • SushiSwap underwent a rebranding in its naming, where it is now known as "Sushi."
  • SushiSwap was originally created in 2020 by a pseudonymous individual or group called Chef Nomi, with co-founders sushiswap and 0xMaki.
  • The project is built on top of a copied, open-source code that was utilized for the creation of Uniswap, which led to the creation of SushiSwap.
  • Sushi (Formerly SushiSwap) is a Decentralized Finance (DeFi) liquidity provision platform.
  • SUSHi is the native cryptocurrency behind the platform, where users can deposit assets into liquidity pools and receive LP rewards.

SUSHI Historical Data Price Chart in the U.S. Dollars (USD)


Sushi (SUSHI) Historical Data Price Chart in the U.S. Dollars (USD). Source: TradingView

What is Sushi (SUSHI)?

The Decentralized Finance (DeFi) space has seen an exponential level of growth as well as evolution due to the fact that more solutions than ever before now exist that allow users to trade their tokens directly with others without relying on a third-party intermediary.


Due to the fact that cryptocurrencies are built to be transparent as well as decentralized, it is simple as well as easy to make a copy out of a project which was previously built. However, some projects do not just copy the source code of others but aim to improve upon it in some way, and one such project is SushiSwap (SUSHI).


Sushi was launched in 2020, and it is an Automated Market-Making (AMM) protocol that was built on top of the Ethereum (ETH) blockchain, which was a fork from Uniswap, which means that it took the open-source code that allows Uniswap to function the way it does.


However, Sushi did a few things differently as a means of differentiating itself, and its DEX integrated with the Sushi Protocol to utilize Smart Contracts.

Sushi also puts its main focus on the development of new features that can benefit every customer of the platform, specifically the SUSHI token, which is a key component within the ecosystem.


The complete suite of DeFi products on Sushi Include:

  • SushiSwap: A Multichain DEX
  • Trident: AMM framework
  • xSUSHI: yield-bearing ecosystem token
  • MISO: token launchpad
  • Onsen: Sushi yield-farming as a service
  • Kashi: lending and borrowing protocol
  • Meowshi: yield-bearing cat token

How is Sushi (SUSHI) Used?

Sushi is an Automated Market-Maker (AMM) that utilizes a mathematical formula that follows x*y=k as a means of automatically balancing the quantity of two underlying tokens within the pool. In this case, there is no requirement for any intermediary or third party to essentially execute the transactions, where all traders have to do is pay the transaction fees to the Liquidity Providers.


Sushi is based on the code that was utilized to create Uniswap. However, it added many different features to its system. Sushi has the main priority of appealing to Uniswap users who provide liquidity through the procedure of lending tokens.


Chef Nomi, which is the creator of Sushi, provided a program so that there are reasonable incentives to essentially get the attention of those users, and this came in the form of providing Sushi holders control over the protocol itself, as well as a payment for them for the process of staking tokens within liquidity pools.

Use-Cases of Sushi (SUSHI)

SUSHI is an ERC-20 token that is built on top of the Ethereum blockchain and is primarily utilized for the process of staking and earning rewards.

There are numerous use-cases surrounding the SUSHI cryptocurrency and protocol, including rewards, the Sushi Liquidity Provider token (SLP),


Governance, lending, and borrowing as well as the Launchpad. We will go over each of these use cases individually.

Rewards

Any user that has ERC-20 tokens, and this includes the SUSHI cryptocurrency, can essentially add liquidity to pools. Furthermore, liquidity providers can deposit both tokens of a token pair with a ratio of 1:1, and as a direct result of this, they can earn 0.25% of the transaction fees in SUSHI tokens, as well as the Sushi Liquidity Provider token (SLP).


The Sushi protocol takes a 0.3% fee on each trade, where 0.25% is allocated to Liquidity Providers while 0.05% gets converted into SUSHI and distributed to SUSHI token holders as the 0.05% reward amount.

Sushi Liquidity Provider token (SLP)

Whenever a user ends up staking a Sushi Liquidity Provider token (SLP) in the pools, which are organized by the SUSHI incentive program called Onsen, they can get rewarded in the form of even more SUSHI tokens.

Governance

SUSHI is the native utility token utilized across the ecosystem. However, there is another governance token known as xSUSHI. xSUSHI plays another major role within the Sushi protocol, as its holders can essentially participate in voting decisions relating to upgrades and future changes to the platform.


By staking SUSHI locked for a pre-defined time frame, liquidity providers can get rewarded in the form of xSUSHI. The main advantage of this cryptocurrency is the fact that the holders get rewarded in the form of 0.05% of the Tx fees.

Lending and Borrowing

Kashi Markets is essentially the lending platform that is powered by Sushi, and it is a product of Bento Box. Bento Box is essentially a vault that stores tokens as a means of earning yield.


Kashi Markets utilizes Isolated Lending Pairs as a means of allowing users to essentially borrow from separate pools, and as a result of this, instead of having all of the liquidity within a single pool, it features multiple isolated pools to reduce the change of all of the pools potentially getting compromised and hacked at the same point in time.


Ultimately, Sushi does not require Know-Your-Customer (KYC), which means that only a decentralized wallet is a requirement when it comes to doing transactions. Anyone can also earn passive income on Sushi by providing liquidity.

Launchpad

Then there's the launchpad, known as MISO. This is essentially a Minimum Initial SUSHI Offering permissionless token launch pad. Startups can attract support from the Sushi community here.

Onsen in Sushi

Onsen plays a symbiotic role within Sushi as well as decentralized finance as a whole. Onsen is a liquidity provision reward system for tokens that are new. This means that tokens that are on the Onsen menu are another potential source of yield when it comes to users. Tokens that are selected to be within the Onsen menu are given an allocation of SUSHI tokens per block as a means of incentivizing the liquidity provision.


The main benefit of this menu is that the project is not forced to incentivize their communities to provide liquidity, as Sushi fills this role for them, essentially making the process easier and reducing impermanent loss whilst also decreasing the price impact or slippage of individual purchases and making everything a lot more cost-efficient.


To receive rewards in the form of the SUSHI, users need to deposit the token received for providing liquidity (SPL token) into the Onsen menu, and these rewards can then help bring new coins within the market, and new coins will feed the trading volume on Sushi.

Usability & Primary Features of Sushi (SUSHI)

In order to facilitate trade, Sushi users will need to essentially deposit currency with the exchange, and this is a procedure known as staking.

Staking occurs at the point in time when any investor or trader wants to swap assets, and the sale utilizes the pool of staked assets to facilitate the trade and generates a fee. A portion of the fee goes to depositors, and this offers an incentive to keep the funds on the exchange.


Sushi, however, differentiates itself from centralized exchanges where the trades are made between users. These centralized exchanges are the custodian of customer deposits. However, Sushi is a DEX, and this means that users are responsible for their individual cryptocurrency wallets.


If someone were to forget their password to an on-exchange wallet on Coinbase or Gemini, for example, the exchange could technically reset their password for them, as they are in control of the private keys. On Sushi, if a user forgets their password, passphrase, and seed phrase, then they risk losing access to their cryptocurrencies permanently.

Protocol

When it comes to the Sushi protocol, anyone can add liquidity to its pools by connecting their Ethereum wallet to their Sushi account.

Users can then lock both the pool’s assets into smart contracts at a ratio of 1:1.


If they wanted to add 2 ETH worth of liquidity to a pool such as SUSHI-ETH, in that case, they would need to convert 1 ETH into SUSHI through the swap function first.


Users can also supply liquidity for trading pairs that do not yet exist by providing the cryptocurrencies for the new pools as well.

As the first LP, they also get to set the initial exchange ratio, which is the price, which will correct itself at the point in time when other users add tokens to the pools through arbitrage.


Furthermore, users that supply cryptocurrencies to liquidity pools can get Sushi Liquidity Provider tokens (SLP), which are a representation of the proportional share of the pooled assets and allow users to reclaim their funds and any crypto fees which were gained whenever they want to.

Ledger

Sushi is built on top of the Ethereum (ETH) blockchain network, and unlike other protocols, it is a community-run project governed by the vote of the community.


Any users that hold the SUSHI cryptocurrency can help govern the protocol by voting on proposals that might improve its ecosystem, and anyone can submit a proposal for Sushi users to vote on.

Smart-Contract Support

Due to the fact that it utilizes the Automated Market Maker (AMM) protocol, Sushi is enabled by smart contracts, which allow users to buy and sell through Sushi DeFi and decentralized exchanges.

Tokenomics & Supply Distribution

SUSHI does not have infinite inflation, as the community voted for a hard cap of 250 million tokens.


New Sushi is created at 100 SUSHI per block for tokens that are staked on the farms.


SUSHI gets distributed through Liquidity Mining, where supplying liquidity to pools gets users SUSHI tokens as a reward.


At Ethereum block 10,750,000, SUSHI tokens started being minted, beginning at a supply of zero.


Newly minted SUSHI gets distributed, minus the 10% development allocation, to everyone that provides liquidity to the protocol.

Team & History

The Sushi project was originally created under the name SushiSwap before it was rebranded.


It was created in 2020 by a pseudonymous individual or group called Chef Nomi, with co-founders sushiswap and 0xMaki.

  • 0xMaki is an anonymous core contributor as well as a founding member of Sushi.
  • Joseph Delong was the Chief Technology Officer for the project but resigned after reports of project infighting.
  • Other members of Sushi remain anonymous.

However, once Chef Nomi decided to withdraw from SushiSwap, the head of the FTX CEX trading platform, Sam-Bankman-Fried, took over the project and gave the control of Sushi to multiple community members in order to make the platform truly decentralized.


When Sushi originally launched under the name SushiSwap, it essentially incentivized liquidity providers to stake their Liquidity Pool (LP) tokens on top of Uniswap by paying out extra SUSHI rewards with a high annual interest rate.


SushiSwap, at the time, managed to attract over $1 billion USD in terms of liquidity, and the total value locked reached $150 million. The staked LP then migrated from Uniswap to SushiSwap after a span of two weeks.


All Uniswap LP tokens that were staked on top of SushiSwap at the time were redeemed on Uniswap for the tokens they represent. New liquidity pools were created with them on SushiSwap, which we now know today as just SUshi, marking its launch.

Activities & Community

When we go over its community on the Official SushiSwap Twitter page, we can see that there are over 226,900 followers.


On the Official SushiSwap Telegram group, there are over 2,600 members.


On the Official Sushi Medium page, there are over 5,300 followers. This gives us an indication that the project has a solid and healthy community as well as engagement.

Development Activity and GitHub Repositories

When we go over the Official SushiSwap GitHub page, we can see that there are 85 repositories.


Out of them, six are pinned, including:

On-Chain Activity

When we look at the on-chain activity from Etherscan, we can see that SUSHI is trading at a value of $1.19. Furthermore, there are 100,555 holders, as well as 3,245,648 transfers.


The fully diluted market cap is at $290,969,439.51, while the circulating supply market cap is at $228,583,496.00.


Source; Etherscan

Activities and Partners

  • SUSHIMI x SUSHI - Through a partnership with Sushimi, Sushi is aiming to set a new standard for transparent, gas-efficient, and fair NFT mints by leveraging Sushi's suite of products.
  • SushiSwap Partnered with Telos and Launched on the Telos EVM - Sushi, which is the number one multi-chain DeFi and AMM platform, deployed on the Fastest Ethereum Layer-1, The TelosEVM.
  • MISO v2 - A permissionless multi-chain launchpad

References & Reports

References

Sushi

Market Research

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