What is Sushi Swap?
Sushi Swap is a decentralised exchange platform (DEX) that utilises smart contracts to create markets between pairs of tokens. Sushi Swap achieves this through liquidity pools whereby liquidity providers will lend their tokens to Sushi Swap for use on the DEX in return for a yield. These liquidity pools help manage the risk of extreme price fluctuations that may occur from large transactions. Sushi Swap is different to many other popular DEXs such as Uniswap and Pancake Swap as it operates on multiple blockchains making it very accessible and providing many options to its users. Sushi Swap was founded by an anonymous developer called “Chef Nomi”, after departing from the Sushi Swap project the CEO of cryptocurrency exchange FTX, Sam Bankman-Fried, assumed ownership of the platform. Sushi Swap’s native token of the same name (SUSHI) provides token holders with incentives to participate in liquidity pools through bonus rewards paid out in Sushi, and allowing holders to earn a portion of the transaction fees from the platform. Sushi Swap utilises the proof of stake consensus mechanism. SUSHI also acts as a governance token that allows holders to vote on proposed changes to the protocol.