History of Sushiswap

Welcome back crypto heads to another stroll down memory lane. This week we will be discussing Sushiswap DEX.

Sushi is a decentralized exchange (DEX) that runs on Ethereum. This DEX saw the light in 2020 when a pseudonymous individual or group called Chef Nomi worked along with co-founders 0xMaki.

Its primary purpose is to incentivize a network of users to operate a platform where users can buy and sell crypto assets. All purchase and sales transactions are sold without the need for a central operator. Sushiswap achieves this through liquidity pools like its counterparts Uniswap and Balancer. Sushiswap has seen an immense increase in popularity and value ever since its founding in 2020.

The DEX jumped from a total value locked of $700 million in 2020 to an ecosystem with over $10 billion locked up.

The following highlights the procedure that allows Sushi to operate smoothly:

1. Assets are deposited into pools by investors called liquidity providers
2. These assets are locked up in smart contracts
3. Traders buy and/or sell cryptocurrencies from these pools
4. Liquidity providers earn revenue from transaction fees
5. This allows the swapping of one coin for another without the need of centralized entities

For example, I deposited 1.4 Eth in a pool and withdrew from the pool the equivalent amount of sushi.

Sushi is Sushiswap’s native token, which reached an all-time high on March 13 2021 with a value of $23.38 and an all-time low of $0.4737 on Nov 4th, 2020.

This was it for this week’s stroll down memory lane, see you soon crypto enthusiasts!