Comprehensive and in-depth interpretation of SushiSwap, the “all-you-can-eat” DeFi buffet


Compilation | [email protected] Martian Finance App

The current situation of DeFi can be summed up in four words: food wars. It feels that every other day there will be a new DeFi protocol with food as the theme to join this battle. From the skyrocketing market of “DeFi Star” to the “death” of “Chef’s smashing”, FTX founder SBF took over and revived signs of resurrection at the time of despair… The plot was twists and turns.

For some users, the launch of SushiSwap indicates that the development of DeFi seems to have gone far. In just a few weeks after its release, controversial events surrounding this project continued, which also undermined the appetite of many DeFi officials.

However, when it comes to SushiSwap, it is much more than what you see and hear. The initial annual rate of return of more than 2500% is just the tip of the iceberg. Even though the SushiSwap DeFi agreement is still controversial, it still remains in the top five (although there is no official ranking).

The SUSHI token is also listed on Binance, and the SUSHI protocol itself has recently been taken over by well-known players in the crypto field. At the end of this article, you will know why SushiSwap may only be a one-star Michelin. The following will analyze the Sushi project from multiple dimensions.

Who founded SushiSwap?

SushiSwap was founded by two anonymous developers, 0xMaki and Chef Nomi. On August 26, Chef Nomi posted a post on Medium detailing the SushiSwap protocol. This attracted 0xMaki to join SushiSwap Discord.

As one of the first participants, 0xMaki had a detailed exchange with chef Nomi and became the co-founder of SushiSwap. It is believed that at the time of release, a total of about 5 developers were working on the project.


0xMaki (left), Chef Nomi (right)

Although people don’t know much about 0xMaki and Chef Nomi, in a recent interview, 0xMaki confirmed that Chef Nomi is located somewhere in Asia. In fact, the Hearthstone card game from which Chef Nomi’s pseudonym came, many people even suspect that Chef Nomi is Chinese, because Hearthstone games are very popular in China .

Considering 0xMaki’s French accent, appearance and time zone prompts, he is likely to be located somewhere in France or a French-speaking Middle East. 0x refers to the starting numbers and letters of the Ethereum address, and Maki is a very popular sushi.

The bitter history of SushiSwap


With the exception of two anonymous developers, SushiSwap has not been audited prior to its release. In other words, in Medium’s first article on the project, Chef Nomi publicly invited some of the most well-known companies, including Quanstamp and Consensys, to audit the code of SushiSwap.

In the first week of its release, SushiSwap has locked up more than $1 billion in accumulated funds, and temporarily surpassed Aave as the largest DeFi agreement. The annual interest rate of locked funds exceeds 2500%.


Chef Nomi exit

On September 5th, Chef Nomi suddenly liquidated more than 14 million U.S. dollars of SUSHI tokens, which were agreements to accumulate development funds. In a Twitter post, he felt he was eligible for these funds. This has caused great anger in the cryptocurrency community, the most famous of which is Andre Cronje, the creator of

Popular YouTuber Ivan also expressed his opinion and said that “SushiSwap is as bad as real sushi”. Ivan also pointed out that due to the impact of the sudden sell-off of SUSHI on the entire DeFi development, it is likely to cause the collapse of the cryptocurrency market the next day.


SushiSwap multi-sig wallet address holder

Subsequently, Chef Nomi got away from Sushiswap and handed it over to Sam Bankman-Fried, CEO of FTX Cryptocurrency Derivatives Exchange. Andre Cronje was also considered by SushiSwap developers as the new leader of the agreement.

The SushiSwap community voted to select 9 people in the DeFi field including Compound Finance founder Robert Leshner to become holders of SushiSwap multi-sig wallet keys.


The total value of Uniswap plummeted on September 9

On September 9, when SushiSwap users migrated Uniswap’s more than $1.14 billion in locked assets to the new SushiSwap platform, Uniswap was deprived of the title of “the first decentralized exchange”.

Although this migration has been planned since the agreement was announced, 0xMaki believes that the migrated cryptocurrency will not exceed hundreds of millions of dollars. This sudden transfer of liquidity from one protocol to another is called a “vampire attack.” .


Apology from Chef Nomi 

On September 11, Chef Nomi suddenly returned the cashed funds to SushiSwap. Some people think that this is done to attract more people’s attention to this project. However, in the aforementioned 0xMaki interview, it was learned that he pointed out that he had sent an ultimatum to Chef Nomi via Twitter to ask him to reply to the message, otherwise the sensitive details of SushiSwap (probably the true identity of Chef Nomi) will be revealed.

Chef Nomi is no longer involved in the agreement, and now he calls himself the “former chef” of SushiSwap on Twitter.

What is SushiSwap?

SushiSwap is a decentralized cryptocurrency exchange built on the Ethereum blockchain. It is an evolution of Uniswap, and it is almost identical in appearance and function to Uniswap.


The classic interface of SushiSwap

SUSHI is an ERC-20 token given to liquidity providers on SushiSwap to reward those who provide liquidity to the protocol, and SUSHI can be used for protocol governance.

Although SushiSwap is controversial, it was and is a community driver and is committed to the open source of the spirit of cryptocurrency. All smart contracts and codes can be easily accessed through GitHub and Medium.

SushiSwap borrowed most of the code from its mainstream DeFi protocols, including Uniswap, Compound Finance and Yam Finance, and passed the review of PeckShield and Quantstamp.

SushiSwap vs. Uniswap

Given that Uniswap just released its own UNI token, SushiSwap and Uniswap are more similar than before. But there is one key point, that is, Uniswap has a problem that SushiSwap does not.


Liquidity providers can earn a share of transaction fees in both agreements. In Uniswap, the more liquidity provided, the greater the transaction fee share obtained from the fund pool.

But the consequence of this is that as the pool grows, the rewards for small liquidity providers will be diluted. Large entities such as cryptocurrency exchanges, mining pools, and venture capital funds can receive the vast majority of transaction fees.

Conversely, early adopters of the SushiSwap agreement will receive 10 times the SUSHI of those who later join the agreement. Even if early adopters stop providing liquidity to the pools, this SUSHI can be used to obtain a share of transaction fees from all pools (more on that later).

How does SushiSwap work?

Like many other DEXs, SushiSwap consists of several asset pools. Each asset pool contains 2 assets, such as ETH and LINK. This is because it uses an automated market maker smart contract, and the ratio between two assets in each pool determines their prices.


When SushiSwap was first released, it focused on Uniswap LP (Liquidity Provider) tokens. These tokens can be exchanged for related storage funds, used in other DeFi protocols, and even can be exchanged for other LP tokens. Liquidity providers can also receive a portion of rewards from the liquidity pool transaction fees provided by LP tokens.


On Uniswap SUSHI .

Sushi is a reward for liquidity providers who bet Uniswap LP tokens on the SushiSwap protocol. In the first 2 weeks of the protocol’s launch, 1,000 SUSHI tokens were issued for each Ethereum block (approximately 12 seconds) to users who bet Uniswap LP tokens into various “pools” with dramatic names.

Given the high market valuation of SUSHI at the time, the annual interest of these pools exceeded 2500%. The highest rate of return is (and has always been) Sushi Pool, which provides an extra 2x SUSHI reward for the Uniswap LP token pledged by SUSHI-ETH.

At the end of the two cycles, a liquidity migration occurred. All Uniswap LP tokens are automatically sent back to Uniswap to exchange for the underlying cryptocurrency and all are sent to the new SushiSwap pool. It was this event that exhausted Uniswap’s more than $1.14 billion in funds within 24 hours.


SushiSwap’s new interface is almost the same as Uniswap’s

After that, SushiSwap actually became a copy of Uniswap, adding some features. The reward for SUSHI is also reduced to 100 SUSHI per block. The currently constructed SushiSwap consists of four key elements: SushiSwap Exchange, SushiSwap Flow Pool, SushiSwap Menu (Farm) and SushiSwap Sushi Bar.

Although SushiSwap’s governance method has not yet been launched, it will also carry out a simple study together with its current SushiPowah voting mechanism.


SushiSwap exchange can easily exchange more than 100 ERC-20 tokens. Like Uniswap, KYC is not required to use SushiSwap exchange. All that is needed is a Web 3.0 wallet, such as Metamask and some Ethereum to pay Gas fees to perform the exchange.


The transaction fee on SushiSwap exchange is 0.3%, which is the same as Uniswap. 0.25% of the fee goes to those who provide liquidity in SushiSwap’s liquidity pool, and the remaining 0.05% goes to the Sushi Bar pool (more on that later).

SushiSwap flow pool

After the liquidity migration, SushiSwap introduced a “regular” liquidity mining pool. Liquidity providers can earn 0.25% of the platform’s transaction fees by depositing equal amounts of two cryptocurrencies into SushiSwap’s existing pool, or creating a pool by themselves.


Liquidity providers will receive SushiSwap liquidity pool tokens (SLP tokens), which have the same functions as Uniswap’s LP tokens. As you might have guessed, these tokens are now used to replace Uniswap’s LP tokens for revenue farming.

SushiSwap menu

SushiSwap’s menu includes the farming pool in the initial version of the agreement. However, SushiSwap’s own SLP token is not Uniswap’s LP token, but uses SushiSwap’s own SLP token to earn different amounts of annual interest.


At present, the “menu” item with the highest yield is Sushi Party. The pledge of SLP tokens obtained by providing liquidity to the SUSHI-ETH pool on SushiSwap can obtain 100% + annual yield. These high yields come from SLP tokens pledged by SUSHI tokens obtained by providing liquidity to the SUSHI-ETH pool.

SushiSwap Sushi Bar

SushiSwap  Sushi Bar can pledge SUSHI tokens here to earn more SUSHI tokens. If you want to know how these rewards come from, please recall the 0.05% transaction fee mentioned earlier. 0.05% of all transaction fees on SushiSwap will be added to the sushi bar pool in the form of SLP tokens.


SushiSwap Staking

SushiSwap Staking:

The reward contract can be called at least once every 24 hours. The contract can liquidate all SLP tokens in the sushi bar pool in exchange for the automatic purchase of SUSHI tokens on the SushiSwap exchange. These tokens will be issued to all users who pledge SUSHI tokens in Sushi Bar in the form of xSUSHI tokens, and these tokens can be converted into ordinary SUSHI tokens in Sushi Bar.

SushiSwap governance

The SushiSwap team is currently developing a governance framework called Omakase DAO, which will transfer control of the protocol to the community. Anyone who owns the SLP tokens obtained by providing liquidity to the SUSHI-ETH pool, or who owns xSUSHI tokens (which also requires SUSHI-ETH SLP tokens to get them), can vote on the changes to SushiSwap.

Although the details are still being finalized, it is expected that tokens will need to be pledged within a fixed period of time to participate in voting.


Currently, the SussiSwap Improvement Proposal (SIP) can be proposed and voted on by anyone on the SushiPowah page of SushiSwap on Snapshot. For those who are unfamiliar, Snapshot is a publicly viewable governance forum used by DeFi protocols such as Aave, Balancer, and

With SushiPowah, each SLP token in the SUSHI-ETH pool is equal to one vote for or against the proposal. 300,000 SLP votes for and 50% of the quorum can pass and promulgate the proposed change, and this change must be made by all 9 Signed by a multi-sig key holder.

SUSHI cryptocurrency

SUSHI is an ERC-20 token issued to the liquidity provider of SushiSwap decentralized exchange. It earns by providing liquidity to the pool on SushiSwap, and pledges it with SLP tokens to manage the agreement.


The token is designed to reward early users of the protocol, allowing them to continue to earn SushiSwap’s fee share after they stop providing liquidity to the SushiSwap pool. You can also bet SUSHI on the Sushi Bar of SushiSwap to earn more SUSHI.

The Ethereum block (12 seconds) issued 1,000 SUSHI to those who pledged Uniswap LP tokens on the SushiSwap initial protocol.


After the liquidity migration occurs, the SUSHI reward drops to 100 SUSHI per Ethereum block. This may be reduced by community voting. SUSHI is currently an inflationary cryptocurrency with no supply cap. This is to ensure continued incentives for liquidity providers on SushiSwap.

SUSHI price analysis

As you might have guessed, when SUSHI entered the cryptocurrency market on August 28, its value was almost zero. However, by September 1st, the price had soared from a few cents to over $12, as yield farmers poured into the crazy annual percentage yield offered by SushiSwap.


SUSHI price history

Just one day later, the price plummeted by more than 50%, falling below US$6. On September 5, SushiSwap’s co-founder Chef Nomi liquidated SUSHI worth more than US$14 million. It fell again by more than 50% to around US$2.50. . Although the situation was resolved a week later, the price of SUSHI continued to fall.

Where can I get SUSHI cryptocurrency?

SUSHI is almost as easy to obtain as real sushi. Binance listed SUSHI on September 1, and it surged at an incredible price. Since then, other well-known exchanges including Huobi and OKEx have listed the token.


SUSHI trading volume on major exchanges

If you prefer a decentralized exchange, SUSHI can still be purchased on Uniswap, of course, you can also buy it on SushiSwap exchange. The liquidity of these exchanges is very high, SUSHI’s 24-hour trading volume is almost twice its market value.

SUSHI cryptocurrency wallet

Since SUSHI is an ERC-20 token, it can be stored in almost all cryptocurrency wallets that support Ethereum-based assets. Where you put SUSHI depends on what you plan to use it for.


Metamask web wallet

If you are interested in using SushiSwap whether it is to provide liquidity or participate in governance, the best choice is a Web 3.0 wallet, such as Metamask. If you plan to hold SUSHI for a long time until the market becomes more hungry for it, better security such as Atomic Wallet or hardware wallet is a good choice!

SushiSwap route map

SushiSwap has one goal, and only one goal: to become the best DEX in cryptocurrency. This is a fairly broad goal, and the new SushiSwap team has not yet elaborated on specific future milestones.


SushiSwap past milestones

The closest file to the roadmap is SushiSwap’s latest Medium post on September 12. It details a series of goals, including fixing existing bugs, establishing partnerships with other DeFi projects (such as Ren), adding new features, such as price limit and stop loss orders, and finalizing and implementing new governance mechanisms. Once SushiSwap’s DAO is launched, the fate of SushiSwap will be in the hands of its community.

Why you like SushiSwap

Although this project seems ridiculous and caused chaos in its short history, SushiSwap still managed to withdraw about 800 million from Uniswap’s 1.14 billion lockup. The daily trading volume of DEX is also maintained at around 200 million US dollars.


Even with these data, DEX is currently not listed in the DeFi ranking of, nor is it listed in CoinMarketCap. To be fair, SushiSwap still needs to repair its reputation in the DeFi community.

Although there are many criticisms of SushiSwap, perhaps the most effective and urgent are the following: Now that Uniswap has released its own native token, what will happen?

If SushiSwap wants to have a chance to remain relevant, it must innovate, especially in a highly competitive field, which is growing very, very fast. There have been two forks of SushiSwap. Kimchi and sashimi (however, these two products have not been greatly developed).



It should also be pointed out that many DeFi protocol naming and UIs, including SushiSwap, are relatively unprofessional. Compared with more sophisticated miners, SushiSwap is even more disgusting for serious retail investors. There are also controversies such as Chef Nomi’s delisting scam, which will really hurt the development of DeFi in the end.

Nevertheless, SushiSwap seems to provide more delicious meals than ever before under the new management. The ambition and dedication of its core developers and community is admirable and may be enough to advance the project well into the future.


USHI inflation rate

The last point, I will not give any investment advice, but arable cryptocurrencies, such as SushiSwap’s SUSHI tokens, are often more profitable than investments, but they will also take greater risks.

Although SUSHI’s token economy may be changed through community voting, its relatively high rate of currency withdrawal may cause prices to fall as those who are farming it continue to sell to smaller and smaller buying pools. In the end, it all depends on the demand for the agreement, but Sushi is currently not popular.

Reference article:

Daniel Krupka: SushiSwap (SUSHI): The’All You Can Eat’ DeFi Buffet

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