SushiSwap

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SushiSwap
SushiSwap logo.jpg
Founded 2020
Headquarters Japan
Key People Chef Nomi, Founder
Products Decentralised finance (DeFi) liquidity pool platform
Twitter @SushiSwap
Website Homepage
Blog Blog

SushiSwap operates a DeFi (decentralized finance) platform that was leveraged from the leading DeFi platform, Uniswap.

Protocol

SushiSwap published a blog post on September 9, 2020 that acknowledged Uniswap's "elegant design" and said that it intended to enhance the design with community governance features that would both reward participants but also award them voting rights through the issuance of SUSHI tokens.[1] SushiSwap copied Uniswap's computer code, reduced the fee payable to "liquidity providers," and made up the difference with SUSHI that would be paid to SUSHI holders. Ninety percent of each distribution of SUSHI was to be set aside in a development fund.[2]

SUSHI are transferable and were promptly listed for trading on major cryptocurrency trading platforms like FTX and Binance.

Launch

With virtually identical software and financial model plus the addition of tradable governance token rewards, SushiSwap depended on liquidity providers on Uniswap to move their liquidity pools off Uniswap and onto SushiSwap. As the platform's September 9 blog post said, "To start providing liquidity and earning SUSHI tokens, anyone holding Uniswap LP tokens can stake those LP tokens into the corresponding initial list of pools."[3]

Upon launch, $830 million of assets were moved from Uniswap onto SushiSwap.[4] Early transfers in "The Liquidity Migration" were incentivized with a SUSHI pay out ten times larger than normal.[5] The amount staked to SushiSwap quickly rose to $1.68 billion of Uniswap tokens. [6]

The original pools available for participation were:

  • CeFi Stablecoins: USDT-ETH, USDC-ETH
  • DeFi Stablecoins: DAI-ETH, sUSD-ETH
  • Lending Protocols: COMP-ETH, LEND-ETH
  • Synthetic Assets: SNX-ETH, UMA-ETH
  • Oracles: LINK-ETH, BAND-ETH
  • Ponzinomics: AMPL-ETH, YFI-ETH
  • Delicacy (2x reward): SUSHI-ETH

Chef Nomi's shenanigans

Shortly after SushiSwap launched, the pseudonymous founder of the protocol, Chef Nomi, withdrew 1bout $14 million worth of Ether from the development fund. Despite being fully legal within the design of the protocol, this transfer engendered an enormous outcry from the community. Sam Blankman-Fried, CEO of FTX and investment firm Alameda Research took on the role of spokesman for the aggrieved SushiSwap participants. A few days later, Chef Nomi tweeted that they had returned the Ether to the development fund.[7]

References