Sushi Price

What Is SushiSwap?

Sushiswap (SUSHI) is an automated market maker (AMM) that has become a popular tool among cryptocurrency users.

In September 2020, Sushiswap was launched as a fork of Uniswap. It has since become synonymous with the decentralized finance (DeFi) movement and the associated trading boom in DeFi tokens.

When trading on cryptocurrency exchanges, traders rely on the platforms to confirm the price of tokens, and the fee from each transaction goes to the institution that processes the trade. SushiSwap, on the other hand, gives price quotes for tokens automatically, using a mathematical formula (x * y = k), where

x and y = quantities of the two paired tokens, and k is constant

This implies that even though you supply equal parts of the two tokens to the pool, the amount you receive when you reclaim liquidity will change, relative to the price change of the two tokens.

With SushiSwap, you don’t need to worry about middlemen or extra fees, as the formula handles the process seamlessly. With no intermediary institution, the transaction fees are paid directly to the users who provide liquidity.

What Is SUSHI?

SUSHI is a governance token given as a reward for liquidity mining on SushiSwap. The token entitles its holders to participate in the platform's governance, granting them a portion of the fees paid by traders to the protocol. SUSHI holders can submit a SushiSwap Improvement Proposal (SIP) on the SushiSwap website, which token holders can vote on, using their tokens in the governance process.

Users can farm the SUSHI token by participating in the yield farming program. The SUSHI token can also be staked across platforms like SushiBar, or as collateral on Sushi's Yearn Finance ecosystem partner, Aave.

What Are SUSHI Tokens Used For? 

SushiSwap uses the AMM model pioneered by Uniswap to trade one cryptocurrency directly for another. However, it cannot be used to exchange fiat currency for cryptocurrency, or vice versa. You can connect your crypto wallet to SushiSwap easily on the SushiSwap website.

To add liquidity, users send equally valued amounts of two cryptocurrencies to SushiSwap. In exchange, they gain Liquidity Provider (LP) tokens and begin to receive rewards.

Users can deposit their newly created LP tokens into yield farms to earn additional annual percentage yield (APY) rewards. This system creates an additional incentive for users to continue participating in the liquidity pool over time.

Who Is the Founder of SushiSwap (SUSHI)?

SushiSwap was initially envisioned by an individual known by the pseudonym of Chief Nomi. 0xMaki, another pseudonymous core contributor, soon joined him.

They created SushiSwap in 2020 by cloning the open-source code from Uniswap. The primary liquidity was ported from Uniswap using a creative — and somewhat ethically questionable — method called the vampire attack.

On September 5, 2020, just a week after the exchange's launch, Chef Nomi took more than 2.5 million SushiSwap tokens and 20,000 Ethereum, valued at around $14 million.

This move upset many in the SushiSwap community. However, Sam Bankman-Fried, an early SushiSwap investor and CEO of FTX, offered to donate 5 million SushiSwap tokens and take over the project.

Chef Nomi then apologized to the community, returned all the crypto he took and stepped aside for the new team to run the project.

How Does SUSHI Work?

SushiSwap consists of several asset pools, similar to other decentralized exchanges. Each pool contains two assets, such as ETH and LINK (Chainlink). SushiSwap applies an AMM smart contract to determine the price of two assets in each pool, using their ratio.

The following actions can be performed on the SushiSwap website:

• Swap: Seamlessly trade one cryptocurrency for other cryptocurrencies, such as converting Bitcoin (BTC) into Ethereum (ETH).

• Farm: Deposit crypto into one of SushiSwap's liquidity pools to earn rewards. Liquidity pools carry combinations of two or more cryptocurrencies, so you must deposit an equal amount of each one.

• Stake: Deposit your SushiSwap tokens into SushiSwap smart contracts and receive xSUSHI tokens in exchange. Eventually, you’ll receive your staked SushiSwap tokens, plus additional yield gained while staking.

• Lend: Provide crypto for others to borrow and earn interest.

• Borrow: Borrow crypto after providing collateral.

Why Is SUSHI Valuable?

SUSHI is considered valuable for two reasons: The perpetual rewards it offers investors, and access to governance rights.

Unlike some other DeFi projects, SUSHI was created with no maximum supply, implying that SUSHI price and market cap are not propelled by scarcity. One would ordinarily expect market dilution to impact SUSHI’s price negatively. However, while distributing 0.05% trading volume to SUSHI holders, SushiSwap must purchase SUSHI to pay out the rewards. This system creates buy pressure to counteract inflation and maintain the SUSHI price, if trading volume is sufficiently high.

In September 2020, SUSHI holders voted to impose a maximum supply and change the SUSHI emission schedule. These changes would affect the future earning potential of the SushiSwap protocol, eventually stimulating token demand, driving up SUSHI price and increasing market cap.

Currently, voting contracts are also nonbinding on SushiSwap. However, users intend to change the governance into a decentralized autonomous organization (DAO). This transition would make the votes binding, resulting in automatic execution by smart contracts.

Anyone can submit a proposal to make these changes to the SushiSwap ecosystem. However, if a user wants to vote, they must hold SUSHI tokens.

What Makes SushiSwap Unique?

As an AMM, SushiSwap differentiates itself from traditional decentralized exchanges by doing away with order books, while avoiding liquidity issues. Though there are many similarities to its parent AMM, Uniswap, SushiSwap has made significant changes to increase network participants' impact on its future.

Some of Uniswap's users were unhappy with the low level of fees for liquidity providers. There was also discontent about the lack of decentralization in UniSwap's governance, and the involvement of venture capitalists in the platform.

SushiSwap's innovation was the inception of SUSHI. The liquidity provider earns rewards in SUSHI, but unlike Uniswap, SUSHI tokens also allow holders to continue collecting a portion of the fee, even if they’ve ceased to provide liquidity.

Furthermore, the token solves Uniswap's decentralization problem by providing governance rights to SUSHI holders. SushiSwap has adopted the "fair launch" distribution approach, ensuring no tokens are allocated for venture capitalists.

SushiBar

One of the key features that make SushiSwap unique is the SushiBar. Users who want to earn more crypto can stake their SUSHI coins through the SushiBar application. They stake their chosen SUSHI tokens using SushiSwap’s smart contracts, and receive xSUSHI tokens in return. These tokens represent the staked SushiSwap tokens, plus any yield obtained while staking. Moreover, extra rewards can be earned by farming in the xSUSHI pool. All xSUSHI stakers also receive a percentage of fees from the exchange.

Liquidity Farming

An important protocol of SushiSwap is the liquidity pool. The tokens traded on SushiSwap are maintained by smart contracts, which allow users to lock their crypto on the software in exchange for rewards. For a new user, this process is easier and less risky than trading.

To understand the entire scope of SUSHI’s AMM platform, it’s important to know how to stack the various yields. Following are the three types:

1. Protocol usage: When someone trades on SushiSwap, 0.25% swap fees are distributed among liquidity providers, and 0.05% swaps on all chains are collected by xSUSHI holders.

2. Network tokens: SLP tokens and KMP tokens are offered as rewards, which further optimizes yields earned through volume and volatility.

3. Leverage demand: The demand for leverage in crypto markets drives increased borrowing. This can be expressed as the rate of interest for lenders on Kashi.

xSUSHI

xSUSHI is a token that you receive in exchange for staking SUSHI tokens in the SushiBar. While holding the token, it increases in value, as the fees from the exchange platform are "served to the SushiBar."

The xSUSHI token obtains value from platform fees, making it worth more than regular SUSHI tokens. For example, when users make trades on the SushiSwap exchange, a 0.3% fee is charged, with 0.05% of this fee added to the SushiBar pool as LP tokens.

The rewards contract is called at least once a day, and all of the LP tokens are sold for SUSHI on the SushiSwap exchange. The newly purchased SUSHI is then divided proportionally between all the xSUSHI holders in the pool, making xSUSHI more valuable than SUSHI.

Given the reward generation mechanism, the price of xSUSHI keeps increasing along with the value of SUSHI. Therefore, the value of one xSUSHI will always be greater than the value of one SUSHI. The fees generated in the SushiBar are vested for some time, yielding higher returns in the long run.

How Many SUSHI Coins are in Circulation? 

SushiSwap's in-house token (SUSHI) is generated at a rate of 100 tokens per block. The first 100,000 blocks had a block reward of 1,000 SUSHI.

SUSHI had no pre-mine and began being minted at Ethereum block number 10,750,000, with an opening supply of zero tokens.

SushiSwap has a live market cap of $192,000,000 as of June 9, 2022. It has a circulating supply of 127,244,443 SUSHI coins and a maximum supply of 250,000,000 SUSHI coins at the time of writing this article.

Where to Store SUSHI

To store your SushiSwap tokens safely, an ERC-20 compliant wallet is required. Depending upon how much SUSHI you have and what you plan to do with it, you can choose your wallet accordingly.

Online Wallets: Online wallets or exchanges, also known as hot wallets, can be accessed via a web browser. Users must trust the platform to manage and protect their SushiSwap tokens. Online wallets are ideal for users who have small amounts of SUSHI coins or need to make frequent trades. An online wallet should be able to provide sufficient security if acquired from a reputable platform.

Software wallets: These custodial or noncustodial wallets can be downloaded on smartphones or computers. MetaMask and WalletConnect are some of the products supported by the SushiSwap platform. Software wallets are suitable for inexperienced users holding small amounts of SushiSwap tokens.

Hardware wallets: A hardware wallet, also known as a cold wallet, is the most secure option for offline storage and backup. However, these might be more expensive and difficult to operate than online wallets. Hardware wallets like Ledger or Trezor are ideal for experienced users who also need to store large amounts of SushiSwap tokens.

How to Buy SUSHI 

You can buy SUSHI from any of the top crypto exchanges, including Bybit.

Buying SUSHI on Bybit 

To purchase SUSHI on Bybit, simply follow these steps:

1. Head to the spot trading page of SUSHI. 

2. Select your trading pair on the left side of the page. For SUSHI, you can only trade with USDT.

3. Choose the type of order you’d like to make: Limit Order, Market Order or Conditional Order.

For Limit Orders:

1. Select Limit.

2. Enter the order price.

3. Enter the amount of SUSHI you want to buy.

4. Click on Buy SUSHI.

5. Once you’ve confirmed that the information is correct, click on Buy SUSHI.

6. View your order details under Active on the web page, or Orders if you’re using the Bybit app.

For Market Orders:

1. Select Market.

2. Enter the amount of USDT you’ve paid to buy SUSHI.

3. Click on Buy SUSHI.

4. Once you’ve confirmed that the information is correct, click on Buy SUSHI.

5. View your order details under Filled.

For Conditional Orders:

1. Select Conditional.

2. Enter the trigger price.

3. Choose to execute at Market Price or Limit Price.

   Market Price: Order price need not be set.

   Limit Price: Order price needs to be set.

4. According to order types:

   Market Buy: Enter the amount of USDT you’ve paid to buy SUSHI.

   Limit Buy: Enter the number of SUSHI you want to buy.

5. Click on Buy SUSHI.

6. Once you’ve confirmed that the information is correct, click on Buy SUSHI.

7. View your order details under Conditional on the web page, and All Orders → Current Orders on the Bybit app.

For more help, you can also visit the Bybit spot trading guide.