In the decentralized finance market, Sushiswap is making it’s ground stronger every day and it is becoming highly popular amongst the liquidity providers and the crypto-traders. Do you know why? Are you interested in exchanging some of your Ethereum into some other cryptos?
Yes, Sushiswap is an improvised and evolved version of Uniswap where you can swap your cryptocurrencies and earn from it. Let us dig deeper and check the insights of this very popular Defi exchange.
Table of contents
|Legal Name||Sushiswap Cryptocurrency|
|Trading Fees||Deposit Fee is Nil, Exchange Fee 0.3%, Liquidity provider fee – 0.25%|
|Supported Cryptos||Sushi/ETH, USDT-ETH, UDSC-ETH, DAI-ETH, SNX-ETH, and other similar swaps|
|Trading Options||Swap, Liquidity Providers – Liquidity mining pool|
What is Sushiswap?
Sushiswap is a cryptocurrency exchange where you can swap different tokens/cryptocurrencies. This is an AMM or automated market-making decentralized exchange. This is presently running on the Ethereum Blockchain. It is also a documentation site project that is run by a community and by their votes. The official core team of the company does not handle or manage this site.
It is kind of an extended version of Uniswap which has been launched in this year 2020. It is referred to as an evolution of the Uniswap protocol design. On the main design of the Uniswap, makers of Sushiswap added community-based features to provide further benefits to the traders and investors.
Sushiswap being so popular must have some great features, what do you think? Let’s take a look into the same –
- Incentives to the liquidity providers: The liquidity providers who provide liquidity to the pool earn incentives not just in the form of trading fees but also Sushi tokens. You can further earn protocol’s fee on these tokens which will let you earn without even providing any further liquidity to the Sushi pool.
- Distribution of tokens: The liquidity providers having Uniswap LP tokens can stake the same and earn Sushi Tokens as well. On this, they can get rewards as well and earn tokens. With every block, hundred Sushi tokens will be created. These tokens will be distributed amongst the stakers of the pool.
- Distribution of rewards: While in Uniswap, 0.3% of the trading fees goes to the liquidity providers, here 0.25% directly goes to them and the remaining 0.05% is converted to Sushi and then distributed amongst the token holders.
- Security Audit: The Sushiswap exchange’s security is quite good. It is safe for users. They also invite certain firms to audit their security to have better safety measures for the users.
- Smart Contracts: The smart contracts written by Sushiswap have quite a fair test coverage. They continue to test their smart contracts to find out if there is any issues and to resolve the same at the earliest.
- Liquidity Migration: Sushiswap has an added feature of migrating the tokens staked for liquidity in this platform. These tokens are migrated to the Sushiswap contracts. This is done to initiate a new liquidity pool for the token holders. Here both the stakers and the token holders are benefitted as stakers will continue to receive the rewards in the form of Sushi tokens.
How to Set Up an account on Sushiswap
For exchanging and trading on Sushiswap you need to first create your account and the steps are mentioned below –
- You have to first sign up by registering yourself on the Sushiswap Website
- You have to enter your details such as name, mobile number, email id, and others
- You can also enter a referral code if you have one while you are creating the account
- Once you submit the form, they will send you an email for confirmation of activation of the account on Sushiswap.
- You have to click the link in the email for confirming and there you go.
- Your account will be activated and you can use the password which has been sent on your email to log in and use the platform to exchange your tokens.
How to Link your Wallet?
Once you have your account on Sushiswap, you can link your wallet. For Sushiswap, you need Metamask or Wallet connect as your wallet. Metamask is the most preferred wallet here on the Sushiswap platform.
- You need to have an account on Metamask or the other wallet platform.
- Click on the right top corner of the Sushiswap website on the ‘ Unlock Wallet’ tab
- A page with both Metamask and Wallet Connect will open. You need to select the one you want to link.
- Once you connect, you can see the tokens and crypto-asset you have in your wallet. You can stake and swap them on the Sushiswap platform.
How to swap tokens
Now, once you have the account on Sushiswap and wallet connected, you just have to swap your cryptos, and here is how you need to go about it –
- Click on the currency you want to swap. Suppose you have Ethereum in your Wallet and you want to swap it with Sushi tokens.
- Then you have to select Ethereum from your wallet and in the exchange option, you have to select the Sushi tokens.
- Once you click on the swap button, Sushi tokens against your Ethereum will get into your wallet.
- Here you have to pay attention to two things. One is the exchange value that is how many Sushi tokens you can obtain for the number of Ethereum you are staking. The second thing is the fees that you have to pay for this swap/transaction.
Sushiswap Fees and Limits
The fees charged by Sushiswap for providing the trading and conversion facility is 0.3% of the total value of the transaction. The liquidity providers get 0.25% of these trading fees. The remaining 0.05% goes into the Sushi bar pool for the Sushi token holders.
Currencies supported by Sushiswap
There are 100+ tokens that can be swapped on Sushiswap and the list includes some of these names –
- Ether (Wrapped)
- Wrapped BTC
- Sushi Token
- USD Coin
- Tether USD
- Yearn. Finance
- Dai Stablecoin and others
Is Sushiswap Safe & Secure
SushiSwap is an unaudited project as of September 2020. Even for audited and very trustworthy projects, depositing assets into a smart contract entails the chance of flaws. SushiSwap, on the other hand, was established by unidentified developers, making deposits extremely riskier.
Never put up more money than you can afford to lose. Furthermore, due to Ethereum’s extraordinarily high gas prices, smaller deposits may require a significant amount of farming before they can make a profit.
Sushiswap is becoming popular every day because of its unique features and facilities for investors. The rewards and the token distribution are very lucrative. The safety and security of the platform add to the benefit of the liquidity providers.
You can stake multiple crypto assets here on this platform and earn interest on your holding like nowhere else. Having said that, this exchange has a long way to go, it is just a novice in the market and needs to work on itself to provide better facilities.
- Can I register on Sushiswap for free?
Yes, you can register on Sushiswap for free. All you need to pay is the trading fees for the transactions you do on this platform.
- Can I use another Wallet on Sushiswap?
You can either use Metamask or Wallet Connect. Apart from these two, the platform doesn’t support any other wallet currently.
- How much time is taken to swap the tokens?
Your tokens are delivered to your wallet within a few seconds. You do not have to wait for days to get the tokens into your wallet.
- Is it safe to use Sushiswap?
Sushiswap has been very particular about its privacy and security measures. The platform is quite secure and it is getting better from time to time.
- Can I trade Sushiswap tokens on other exchanges?
Yes, you can trade Sushiswap tokens on other exchanges like OKEx, Binance, and others. Some of the major cryptocurrency exchanges have registered these tokens for trading.
- Currency Support
- Online Reputation
- Customer Support
- Easy to use platform
- 100+ tokens can be traded
- You earn rewards on your investment
- Sushiswap provide up to 100% interest
Not highly Secure