Decentralized finance (DeFi) has grown in popularity over the last few years as more crypto exchanges enter the fray. SushiSwap is a decentralized exchange (DEX) that has accumulated a large user base in the last few years. Should you trust SushiSwap for your trading? Our SushiSwap review will cover all the details you need to know so read on.
- Operating Since 2020
- Currencies Supported 100+ cryptocurrencies
- Fees Varies
- Deposit Methods Cryptocurrency deposits, debit cards, credit cards, wire transfers, PayPal, etc.
- Fiat Currencies Yes
- Verification Methods KYC
- Margin Trading Yes
- Futures Trading No
- What Is SushiSwap?
- SushiSwap Features
- The SushiSwap Trading Experience
- The SushiSwap Liquidity Provider Experience
- Account Creation on SushiSwap
- Linking Your Wallet on SushiSwap
- SushiSwap Fees and Limits
- SushiSwap Payment Methods
- Supported Currencies on SushiSwap
- Sushi Swap Yield Farming
- SushiSwap Security
- Trading with Small Deposits
- SushiSwap Customer Support
- SushiSwap Pros and Cons
- SushiSwap Review: The Bottom Line
What Is SushiSwap?
SushiSwap is a decentralized cryptocurrency exchange where you can swap different cryptocurrencies and tokens. Established in 2020 as an upgrade on Uniswap, the platform runs on the Ethereum blockchain.
When launching SushiSwap, anonymous founders Chef Nomi and 0xMaki included numerous advanced features in a bid to set their platform apart. Their hope is making SushiSwap the go-to market for token and coin swaps.
Some of SushiSwap’s standout features include:
Liquidity providers (LPs) form the heart of the SushiSwap experience. The platform keeps its liquidity pool active by offering incentives. Specifically, providers receive SUSHI tokens and pay lower trading fees.
Additional protocol fees on earned tokens also allow providers to generate profits without providing additional liquidity to the pool.
Lastly, the platform delivers 0.25% of the trading fees to SushiSwap liquidity providers. Another 0.05% converted to SUSHI goes to the token-holders.
Cross-Platform Liquidity Provision
Liquidity providers holding Uniswap LP tokens can stake their tokens in the xSUSHI liquidity pool and earn SUSHI as a reward. The platform produces 100 SUSHI for every liquidity block. The tokens then go to the LPs in the specific pool.
SushiSwap’s smart contracts are some of the most advanced in the DeFi space. The platform’s team continually tests the smart contracts to detect anomalies and resolve them as quickly as possible.
The SushiSwap Trading Experience
As with Uniswap, SushiSwap offers no order books. Instead, its automated market maker model (AMM) allows traders to make market orders.
Consequently, you only need to select your input and output tokens during a trade. The input token is the unit you’d like to exchange for the output token. So, in a BTC/ETH trade, BTC is the input token while ETH is the output token.
To use SushiSwap, you have to connect to the decentralized application (DApp) through a web 3.0 wallet such as MetaMask. Once connected, you can select the asset you want to trade away (BTC in our example above) and the asset you want to purchase (ETH). Confirming the transaction will execute the trade.
SushiSwap provides the best possible market rate for the swap at execution. For each trade, the platform will show you the trade route, expected price, fees, and minimum number of tokens you’ll receive. Be sure to cross-check the parameters before you execute the trade.
The SushiSwap Liquidity Provider Experience
As a liquidity provider on SushiSwap, you must supply liquidity to both sides of any pool in equal amounts. For example, if you want to provide liquidity to the BTC/ETH market, you must add an equal amount of BTC and ETH to the pool. This approach is essential to maintain SushiSwap’s AMM model.
After supplying liquidity, you will receive “liquidity tokens” from the platform. These tokens represent a claim on your share of capital within any pool. You can redeem the liquidity tokens in exchange for your collateral (the provided capital) at any time.
Account Creation on SushiSwap
SushiSwap’s account creation process is similar to what you’ll get on other crypto exchange platforms. You’ll first have to provide personal details like your name, email address, etc. On completion, the platform will send you an email with a confirmation link.
After confirming your account, you can log into the platform to begin exchanging tokens or providing liquidity.
Unlike other platforms, SushiSwap doesn’t operate Know-Your-Customer (KYC) policies. The platform also isn’t registered in any jurisdiction. As a result, they are not bound by any regulator’s laws.
Linking Your Wallet on SushiSwap
MetaMask is the preferred wallet for many people on the SushiSwap platform. However, you can also link WalletConnect and several others (more on them below) on the exchange.
Here’s how to connect your wallet to SushiSwap:
- Click the “Unlock Wallet” option on the top right corner of the SushiSwap website
- Select MetaMask or WalletConnect on the next dialogue window
- Complete the connection
After successfully linking your wallet to the platform, you can see your tokens and other crypto assets available for use on the exchange.
SushiSwap Fees and Limits
Traders pay a fixed 0.3% trading fee on SushiSwap. You’ll pay dual fees for limit orders as you have to pay makers and takers for the position. However, the platform does not charge any withdrawal fees.
Liquidity providers get a 0.05% discount on trading fees, paying only 0.25% per trade. Liquidity providers also receive 0.25% of the trading fees while the remaining 0.05% goes to holders of the SUSHI token. The 0.25% portion goes back into the liquidity pool.
As a liquidity provider, you can redeem accrued fees during withdrawals. Keep in mind that the 0.3% trading fees don’t include the ever-changing gas fees.
SushiSwap Payment Methods
Traders on the platform can deposit money through various methods. These methods include cryptocurrency deposits, debit cards, credit cards, and wire transfers. You can also add money to your wallet using PayPal or similar providers that support crypto payments.
Supported Currencies on SushiSwap
There are more than 100 supported currencies on SushiSwap. Some of the most popular options include:
- Dai Stablecoin
- USD Coin
- Wrapped BTC
- Wrapped Ether
- Wrapped BTC
- SUSHI token
Sushi Swap Yield Farming
The SushiSwap Farm feature allows users to combine two different DeFi tokens in one smart contract. You can use fiat-based coins like Tether or USD coin along with decentralized tokens in yield farming.
You can do yield farming in KASHI, SushiSwap, and double reward farms. Many traders partake in yield farming because it benefits both the exchange and the farmers. The farmers can get up to 100% APY on specific assets for lending their funds to the liquidity pool.
The exchange also benefits from farming by encouraging users to provide liquidity. As a result, the liquidity facilitates token swaps on the platform. Overall, yield farming helps SushiSwap cultivate a favorable trading environment for all users.
SushiSwap has one of the most advanced yield farming set-ups in DeFi, which isn’t surprising. The KASHI loan market, the xSUSHI derivatives pool, and the standard DEX collectively make the SushiSwap environment highly promising for yield farming enthusiasts.
SushiSwap is a relatively safe platform, though it was the target of a $3M hack in 2021. As mentioned earlier in our SushiSwap review, the platform doesn’t adhere to any jurisdiction’s regulations in keeping with its “decentralized” mantra. However, this factor makes the platform risky for heavy deposits.
Furthermore, the exchange’s founders remain anonymous. The platform’s Coinbase profile lists only two employees (one if you don’t count Ox Maki). So, while the platform has proven trustworthy so far, you should still exercise caution while using it.
Apart from these issues, the platform is generally secure. Its powerful encryption and storage options mean that farmed tokens are rarely at risk. Also, since the bulk of your tokens will reside on MetaMask or WalletConnect, you have minimal risk of losing your holdings.
Trading with Small Deposits
SushiSwap’s steep gas prices make it inconvenient to trade with small deposits. As a result, you’ll need to do a significant amount of yield farming to make profits with your small deposits. The platform’s gas fees are not temporary either, so weigh your options carefully if you’re a small deposits trader.
SushiSwap Customer Support
SushiSwap only offers an email address as its primary customer support channel. You can expect responses in 48 hours when using the email service. If you need a faster response, you can send the support team a message on the platform’s social media pages.
However, most users ask their non-sensitive questions publicly to receive help from other users. The platform’s knowledge library also contains answers to common problems and other details about the exchange.
Is SushiSwap free to register?
SushiSwap is free to register. However, you need to pay trading fees for transactions and gas fees.
Which other wallets do SushiSwap support?
MetaMask and WalletConnect are the top wallet choices on the platform. However, traders can also use Portis Wallet and Atomic Wallet. Apart from these four, SushiSwap offers no other supported wallets.
Moreover, your standard digital or hardware wallet will not work on this platform. So, it’s best to add tokens from your existing wallets to the supported wallet options to maximize the platform.
How quick are the transactions on SushiSwap?
SushiSwap transactions take only a few seconds to complete. You can expect swapped tokens in your wallet immediately after confirming the transaction.
Can I trade the native Sushi tokens on other exchanges?
You can trade SUSHI tokens on other conventional exchanges including Binance, OKex, FTX, etc. Most of these platforms offer multiple SUSHI-based pairs.
Does SushiSwap have any geographical limitations?
SushiSwap is a crypto trading platform with a global clientele. Since the platform doesn’t fall under any regulatory frameworks, they don’t place limits on who can sign up for it.
If you have access to a funded MetaMask wallet, you can start trading on the exchange in a few minutes.
Does SushiSwap have a digital wallet?
SushiSwap is a non-custodial exchange platform. Meaning, they don’t store digital assets or funds on the platform. You can only use approved third-party wallets like MetaMask, Atomic Wallet, etc.
Does SushiSwap allow futures trading?
SushiSwap does not allow futures trading. Users can only make money by swapping tokens, providing liquidity, or doing yield farming.
SushiSwap Pros and Cons
- More than 100 trading pairs
- Numerous incentives providing extra income
- User-friendly platform
- Instant token transfers
- Advanced yield farming
- Exorbitant gas fees
- No charting software
- Lack of regulation
SushiSwap Review: The Bottom Line
SushiSwap offers plentiful earning opportunities for its userbase. It provides a quick method of asset swaps and a simple way to earn profits. Overall, SushiSwap is one of the front-runners in the DeFi space today.
However, as our SushiSwap review showed, the platform isn’t without its drawbacks such as its high gas fees. Moreover, experienced traders looking for a robust platform with excellent charting software and leverage trading opportunities should look elsewhere.