So, here’s the thing, many people are still confused about how Sushiswap actually works. I'll try to explain briefly.



SushiSwap is basically a DEX on Ethereum, using an AMM system (automated market maker). So instead of a traditional exchange with an order book, here you directly swap tokens from a liquidity pool. Faster, more decentralized.

What’s interesting about Sushiswap is not just for trading. There’s yield farming, staking SUSHI or xSUSHI (SUSHI that is staked), and participating in governance. Perfect for those wanting passive income from DeFi. Liquidity providers can deposit token pairs, earn a share of trading fees, plus rewards in the form of SUSHI.

For the SUSHI token itself, it has several functions: voting for governance, reward staking, and incentive yield farming. Its supply is inflationary but decreases over time. Part of the trading fees go to LPs and stakers, with a vesting period for the team and early investors.

What you need to know is, the benefits of Sushiswap are high potential yields, truly decentralized governance, and multi-chain support. But there are risks too: impermanent loss for LPs, common smart contract risks in DeFi, plus stiff competition from other DEXs.

Currently, the price of SUSHI is $0.21, down 4.21% in the last 24 hours. Market cap is around $58.34M with about 273 million tokens in circulation. If you’re interested in exploring, start small, understand the impermanent loss risk, and remember this is still high risk.

A common question: what’s the difference between Sushiswap and blockchain? Simply put, Sushiswap is a protocol on Ethereum, not a blockchain itself. SUSHI is its native token. The main risks to watch out for: impermanent loss, smart contract bugs, and yield volatility. So before making large deposits, make sure you understand how it works.
SUSHI1.94%
ETH0.3%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 8
  • Repost
  • Share
Comment
Add a comment
Add a comment
GateUser-b070e059
· 21h ago
nice
Reply0
GateUser-ddd38b09
· 23h ago
good job
Reply0
GateUser-17210358
· 04-27 19:48
Bitcoin will form a bear flag and will drop.
View OriginalReply0
GateUser-bf4b48f3
· 04-27 19:24
usuisdididijdmxxususjjdmdd
Reply0
GateUser-dcca48cb
· 04-27 18:40
Paying close attention🔍
View OriginalReply0
GateUser-40c06473
· 04-27 17:57
DYOR 🤓
Reply0
GateUser-0882c637
· 04-27 15:20
If it’s important, then seriously use the cute flannel hair clip-on sandals.
View OriginalReply0
GateUser-a946cd79
· 04-27 15:19
yo bro follback me
Reply0