How Delicious is SushiSwap?
SushiSwap (SUSHI) is an Ethereum-based fork of the largest and most popular decentralized exchange (DEX), Uniswap (UNI). While the initial days of SushiSwap were marked with a lot of community drama, the protocol has since gone on to establish itself as one of the leading DEXes with trading volumes and total value locked (TVL) making new highs.
Features of SushiSwap?
As mentioned earlier, SushiSwap is a fork of Uniswap which means it possesses a lot of features from Uniswap’s smart contract code. Yet, SushiSwap’s offerings are much wider than those of Uniswap, especially since the launch of a series of new products from the protocol such as SushiBar, BentoBox, Kashi, and Miso.
According to the official documentation on SushiSwap’s portal, SushiBar is the platform where SUSHI token holders can stake their tokens to receive xSUSHI. SushiBar enables users to maximize yield on their SUSHI as for every swap on the exchange on every chain, 0.05% of the swap fees is distributed as SUSHI proportional to the holder’s share of the SushiBar.
Besides, holding xSUSHI also allows the users to take part in the Sushi ecosystem’s governance and receive a fully composable token that can interact with other protocols. Due to the design of the rewards generation architecture at Sushi, the price of xSushi will increase with the price of SUSHI. At present, SushiBar offers an attractive APR of more than 8.5% to SUSHI stakers.
BentoBox is a new feature introduced in the Sushi ecosystem but is already gaining upward traction in terms of popularity due to its yield-maximizing feature for certain token holders. Put simply, BentoBox is a special smart contract that acts as a vault for certain tokens. This vault can be used as a pool of funds for Bento-enabled applications in the Sushi ecosystem. Users can choose to deposit funds into one of the BentoBox vaults and earn extra yields on their tokens.
BentoBox vaults can generate extra yields through a variety of innovative ways such as allowing participants to take flash loans and pay a small fee that goes back to the users providing liquidity to the vaults. Further, BentoBox’s structure is gas efficient as different applications operating on the same vault don’t have to go through different steps for smart contract execution.
At present, the only available Bento-enabled application is Kashi – a lending and margin trading platform.
Kashi enables anyone to create customized and gas-efficient markets for lending and borrowing. Kashi differs from popular similar platforms such as Aave (AAVE) as it isolates every different market. This allows users to create markets for more risky assets without having to worry about cascading effects on other asset markets. What’s more, Kashi also enables participants to short a particular asset to hedge themselves against market volatility.
Another new offering introduced by the Sushi ecosystem; Miso is a token launchpad platform that facilitates the launch of new tokens on Sushi. Miso is committed to providing a delightful token launch experience to both project creators launching new tokens and people interested in supporting such projects.
Miso introduces gas-efficient smart contracts that make the process of launching tokens easier. Moreover, by leveraging the Sushi ecosystem, Miso allows project teams to tap into a larger audience than they would have been able to reach out to on their own.
Sushi’s Network Integrations
The exorbitant gas fee on the Ethereum network has been a major Achilles Heel prohibiting retail investors from participating in the DeFi landscape. The Sushi ecosystem realized this bottleneck and, to date, has integrated with a total of 9 different blockchain networks to allow for feasible transactions.
At present, Sushi participants can choose from among Ethereum, Fantom, Binance Smart Chain, Polygon, HECO, xDai, Harmony, Avalanche, and OKExChain networks. Further, with the recent release of the Arbitrum mainnet, it won’t be long before Sushi integrates with the highly anticipated Ethereum layer-2 scaling solution.
Considering the aforementioned catalog of robust applications and offerings being developed in the Sushi ecosystem, SUSHI looks primed for a bright future both in terms of price and adoption. Not to mention the upcoming Arbitrum integration and the eventual launch of the SushiChain.
Numerous technical metrics such as the Market Cap/TVL ratio, total market cap, and the variety of revenue streams indicate that Sushi is one of the most undervalued and, of course, appetizing DeFi protocols today.