SushiSwap was launched in 2020 and lets users swap tokens, earn returns, stake for yield, lend, borrow, and use leverage through its decentralized, community-powered platform. 

The protocol is deployed on Ethereum, and like Uniswap and Balancer, SushiSwap relies on multiple liquidity pools to support its model. Users can start by depositing assets into smart contracts, after which traders can exchange cryptocurrencies against the pool reserves-trading one token for another.

What are SushiSwap’s key features and how does it work?

At a high level, SushiSwap operates like a conventional centralized exchange where users buy and sell crypto. Instead of a single central operator, it uses smart contracts to handle trades. Participants can lock crypto in these smart contracts, and traders can then access those locked assets during swaps. 

Traders pay fees for using the locked liquidity, and those fees are shared across all liquidity providers on the network. Distribution happens proportionally according to each provider’s contribution to a pool. Providers also receive a share of the 100 daily minted SUSHI.

SushiSwap’s yield-farming system lets liquidity providers add capital to SushiSwap pools. To do so, liquidity providers connect their Ethereum wallet to the SushiSwap farming interface, then lock two assets into a smart contract-for instance, the USDT/ETH pool uses deposits of USDT and ETH in equal value. 

Once funded, buyers can swap tokens within the pool following the protocol’s rules. To help keep pool pricing consistent, SushiSwap smart contracts calculate token amounts such that the buyer receives an equivalent quantity of tokens back, maintaining a stable overall pool price.

Liquidity providers can withdraw their funds whenever they choose, together with any crypto gained from farming, often called their “harvest”. Sushi’s SushiBar gives users a way to stake their SUSHI to receive the xSUSHI token, offering another route to generate additional rewards.

In addition, holders of the asset can submit changes to how the system operates and vote on proposals put forward by other users. 

Where can you buy SushiSwap?

SushiSwap (SUSHI) is available on multiple CEXs and DEXs: