SushiSwap- Decentralized Exchange (DEX): Project Review
SushiSwap is an Ethereum blockchain-based exchange platform designed for beginners. Unlike other Ethereum blockchain exchange platforms that have barriers to entry and exit and other technical factors, SushiSwap became popular owing to its friendly interface and several other features. Here are some of the most popular features of the platform.
Features of SushiSwap
The following are the features of the platform:
Community governance: The platform allows users to vote for certain aspects of the platform. Thus, the platform users have a considerable say over the platform's operations and improvements.
Gain Liquidity: SushiSwap users can gain liquidity, which is one of the platform's most popular features. Thus, users create their own route to success, either through providing liquidity, trading or staking at the Sushibar.
Extra incentives: Sushibar has a program called Onsen that offers greater liquidity on specific pools. You can find these incentivized pools on the "yield" option on its website, which has a maximum of 58 pairs. The list of incentivized pools is updated after every two months.
Staking: Users must pay a 0.05% fee for all their trades on SushiSwap. Users also receive xSUSHI coins, which represent their stake at the Sushibar. These xSUSHI coins increase in value over time, which greatly benefits users.
Easy-to-understand interface: One of the most significant factors behind SushiSwap's growing popularity is its easy-to-use and understandable interface. It is perfect for new users as it offers simple explanations of highly technical terms. Thus, the site helps novice DEX users better understand market operations.
Who Must Use SushiSwap?
Since SushiSwap has an array of advantages and disadvantages for new and veteran DEX traders, it is vital to understand who is perfect for using the platform.
Firstly, if you are keen on exploring Japanese culture and earning rewards, SushiSwap can be the best. Secondly, if you are new to DEX and want to grasp its terms and operations more interestingly, this platform might be helpful.
Remember, the platform opens up enough scope for you to earn interest, even while you are learning. Thirdly, if you are looking for a community-governance network where you can stake your SUSHI coins and vote for the platform's governance, SushiSwap offers considerable scope.
Pros
Below are the platform's advantages that make it popular among new investors.
Interactive Platform Theme
As the name suggests, the platform has a Japanese restaurant theme that is helpful for users new to Decentralized Exchange (DEX). The platform allows users to simplify complicated terms in DEX and understand them more easily. SushiSwap also has several tools and resources that can help new users unaware of the technical nitty-gritty of DEX.
Users Have Complete Access to Their Assets
SushiSwap aims to solve the problem of liquidity by creating a community-driven network. As a Decentralized Exchange, the platform helps users access their assets. Such a feature enhances the users' liberty; thus, the platform is quite a favorite amongst most.
Great Rewards and Opportunities
SushiSwap has several reward systems to help users remain engaged. The platform also implements game-theory mechanisms, which assist in resolving the need for liquidity and rewards. Users can also stake the platform's native coin, SUSHI, at the Sushibar, which returns xSUSHI tokens rather than direct liquidity fees.
Cons
While the platform has several advantages, it has a few disadvantages too. In fact, it is owing to these disadvantages that SushiSwap still struggles to make a mark among DEX users.
Lack of Technical Features
One of the most significant drawbacks of SushiSwap is its inability to upgrade to a better and smarter version. Since the platform was built out of Uniswap Protocol, the latter's change in licensing made it difficult for SushiSwap to upgrade. While the earlier version helped the platform make the most out of it, the new protocol turned the tables. Thus, SushiSwap now lags compared to other DEX exchange platforms, which constantly upgrade their sites to offer a better interface to users.
Inauthentic Origin
As mentioned earlier, SushiSwap developed from Uniswap. The platform has a mysterious origin as it eventually targeted users to move from Uniswap to SushiSwap. Most financial experts often see this act as one out of desperation; evidently, the platform has a questionable origin. As a result, people often doubt the authenticity of the platform and its security features. Moreover, one can hardly determine the real roots of the platform and claim it is absolutely authentic. Hence, the mystery of the platform's origin continues.
Limited Support
The platform, being an Ethereum blockchain-based platform, supports only Ethereum coins. This reduces the scope of earning in users. Such a feature is a major drawback that hampers the growth of profit in users.