BTSE launched SushiSwap’s governance token, SUSHI, on May 20th, part of the commitment by the multi-currency digital assets exchange to growing its offerings and providing added liquidity to benefit its users.
What is SushiSwap (SUSHI)?
SushiSwap, a decentralized exchange (DEX) built on the Ethereum blockchain, functions as an automated market maker (AMM) whose native SUSHI token is seeing growing take-up alongside DeFi adoption.
SushiSwap was built as an improvement on Uniswap, one of the most popular DAaps on Ethereum. It seeks to fix many of the shortcomings of traditional DEXes by using smart contracts to create automated trading liquidity between any two digital assets. Geared toward DeFi users, it gives its community more control over its AMM and future developments.
The protocol has so far been one of the biggest success stories in DeFi and ranks in the top 10 DeFi protocols by total value locked (TVL), with US$4.22 billion, according to DeFi pulse (on May 18, 2021). Although it trails Uniswap in the rankings, SushiSwap has been outpacing its rival in total weekly DEX volume since January 2021.
SushiSwap generates around 15% of weekly DEX volume compared to Uniswap’s 11%, according to Messari, the crypto metrics and data provider.
SushiSwap is firmly in the DeFi innovation race
Uniswap made headlines with its v3 launch, but SushiSwap is firmly in the innovation race with a suite of new products that promise to make it a heavyweight in DeFi. Its aggressive strategy — to grow the protocol beyond its current use case as an AMM and give users the tools to maximize earnings — revolves around two products, BentoBox and Kashi Lending.
BentoBox is a single vault containing the assets deposited by users and makes them available for decentralized applications built off of the vault. It stands out with its lower gas fees and minimal complexity, while offering more efficient token transfers and easier integration, according to SushiSwap developers. BentoBox users can generate revenues from flash loans and various other strategies that build on the product.
Kashi is a lending and margin trading platform that was created as BentoBox’s first DApp and operates with “isolated lending pairs”, allowing lenders to yield an interest rate. The lending pairs deploy a similar working mechanism to liquidity pools, where a user provides an asset as collateral for the lender.
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