The SushiSwap Project 🍣🍣🍣

An evolution of Uniswap with SUSHI tokenomics.

Sushi
Sushi
Sep 9, 2020 · 5 min read

📈 Origin

In the two years since its launch, 🦄 Uniswap has solidified its position as one of the mainstays in DeFi. Along with that, their protocol design has become a standard in and of itself, one in which many projects have come to derive its mechanics from.

🎨 Protocol Design

💧 Liquidity Provider Incentives

Of course, one of the natural questions that many may have is: “Why would someone want to provide liquidity to SushiSwap, as opposed to Uniswap?”.

👨‍🌾 Token Distribution

We are aware that many of us are existing liquidity providers in Uniswap pools. With that, we have designed the token distribution mechanics to make it as easy as possible for the existing Uniswap liquidity providers to start migrating to our protocol!

💸 Reward Distribution

With the current Uniswap configuration, 0.3% of all trading fees in any pool are proportionately distributed to the pool’s liquidity providers. In SushiSwap, 0.25% go directly to the active liquidity providers, while the remaining 0.05% get converted back to SUSHI (obviously through SushiSwap) and distributed to the SUSHI token holders 📈.

🕑 Ensuring Project Sustainability (aka. Dev Fund)

Let’s ensure the long-term viability and sustainability of the project. Following suggestion from @LawMaster, 10% of every SUSHI distribution is set aside for developers. Hope the community won’t mind feeding us some 🍣 dinners.

⛵️ The Liquidity Migration™️

Around the first 100000 blocks from the protocol’s inception (~2 weeks), we will be migrating all the liquidity tokens staked onto SushiSwap contracts. This migration will involve taking all of the Uniswap LP tokens staked on SushiSwap, redeeming them on Uniswap for the respective token pairs, and initializing new liquidity pools from those tokens. These new pools will be almost identical to the standard Uniswap pool, with the added feature that any fees accrued will be distributed to SUSHI token holders through the logic outlined above.

🍣 Protocol Usage

At the protocol and smart contract level, SushiSwap shares an identical interface to Uniswap. This means that if your protocol is currently compatible with Uniswap, it should be relatively simple to integrate with SushiSwap. We will work with various DeFi and other ecosystem tools to start integrating SushiSwap.

🔐 Security Audit

Security is important to us. We reasonably unit test coverage and have tested that everything works on the testnet.

💻 Smart Contracts

The contracts are available at https://github.com/sushiswap/sushiswap with 🅦WTFPL license. Some codes are from other projects including Uniswap / Yam / Compound / OpenZeppelin and are subjected to their licenses. The followings are the list of the contracts with rough explanation:

🏁 How You Can Participate

You can start depositing LP tokens to the MasterChef contract using the interface at https://app.sushiswap.org

💬 Join Us!

Sushi

Sushi.com🍣Find rare & unique cryptocurrencies, while earning delicious rewards on your idle tokens!

Sushi

As a community-driven, decentralized exchange, there are less hoops to execute your crypto trades and all platform transaction fees are redirected to the users who provided liquidity to the ecosystem, just as it should be!

Sushi

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Sushi

sushi.com 🍣 A community-led cryptocurrency exchange, part of the Yearn DeFi ecosystem

Sushi

As a community-driven, decentralized exchange, there are less hoops to execute your crypto trades and all platform transaction fees are redirected to the users who provided liquidity to the ecosystem, just as it should be!