SushiSwap (SUSHI) is a decentralized cryptocurrency exchange and governance platform that operates on the Ethereum blockchain.
It was created as a community-driven alternative to Uniswap, another popular decentralized exchange (DEX).
Automated Market Maker
SushiSwap, like Uniswap, uses an Automated Market Maker (AMM) model for trading cryptocurrencies. AMMs allow users to trade assets without the need for traditional order books and rely on liquidity pools to facilitate trades.
Liquidity Migration from Uniswap
SushiSwap incentivizes liquidity providers to deposit their funds into liquidity pools by rewarding them with SUSHI tokens. Liquidity providers earn a portion of the trading fees generated by the pool as well as SUSHI rewards.
SushiSwap was initially created as a fork of Uniswap, and it offered liquidity providers on Uniswap the ability to migrate their funds and receive SUSHI tokens as an additional incentive.
SUSHI token
SUSHI is the governance token of the SushiSwap platform. Holders of SUSHI can participate in voting on proposals and decisions that affect the protocol’s development and operation.
Disclaimer. This article is for informational purposes only and should not be viewed as an endorsement by Coinidol.com. The data provided is collected by the author and is not sponsored by any company or token developer. They are not a recommendation to buy or sell cryptocurrency. Readers should do their research before investing in funds.
Source: https://coinidol.com/sushiswap-sushi-token/
