The total value of the coins locked on Sushiswap forked from Uniswap, one of the DeFi projects, reached $ 250 million within the first 24 hours of its release. The total value of Sushiswap’s locked digital currencies has now exceeded $ 700 million. However, concerns remain for the future of SUSHI, which has so far been rising rapidly. So what is Sushiswap (SUSHI) that is already gaining great attention?
Decentralized finance world (DeFi) projects are one of the most talked about topics of recent times. Uniswap, one of the projects in the DeFi sector, which develops with new projects added every day and the increasing interest of the market, has a daily average trade volume of over 575 million dollars. In addition to this success of Uniswap, Sushiswap, which left Uniswap via hard fork, started its life in DeFi 1 day, when the total value of cryptocurrencies locked on Sushiwap reached 250 million dollars. Currently, the total value of the coins locked on Sushiswap is approaching $ 1 billion. The name of the governance token launched by the rapidly appreciating platform is “SUSHI”. SUSHI is basically a ‘meme’ cryptocurrency just like Dogecoin, and this fun idea presented to people can be regarded as a source of quick attention.
Sushiswap, Uniswap Meets Yield Farming
Sushiswap is just like Uniswap; It is a platform that rewards investors who provide liquidity to pools with a portion of their transaction fees. One of the main differences between the two platforms is that Sushiswap promises its liquidity providers its token, SUSHI. In this respect, Sushiswap and SUSHI proceed in the same way as the ‘lending’ projects (such as Compound – COMP or Aave – LEND) in the DeFi sector.
While Uniswap offers liquidity providers a 0.30% incentive share, Sushiswap offers a rate of 0.25%. Sushiswap closes the 0.05% difference with SUSHI in order to give an equal amount of incentive share with Uniswap.
Currently trading at $ 3.59, SUSHI has approximately $ 33 million of liquidity in Uniswap alone. There are many market experts who believe that Sushiswap can fight Uniswap, which has a fork, thanks to SUSHI, which has a total trade volume of $ 84 million.
Will it end like YAM?
SUSHI, which quickly became the center of attention as it came out, brought to mind the YAM project, which was launched last month and quickly called a bubble. YAM was a DeFi project that disappeared within days due to problems with smart contracts and critical errors in the software. Because, although Quanstamp said that very soon it will audit SUSHI’s smart contracts; In addition to the rapidly growing interest, SUSHI is still unregulated. This makes the project quite risky according to most experts.
Many DeFi experts, such as Dharma Labs co-founder Brendan Forster, state that SUSHI will become a risky investment if such errors are encountered in Sushiswap, which has not yet undergone major trials.
Foster believes that Sushiswap investments will result in absolute loss for liquidity providers, and that it is only the founders of SUSHI who benefit from it. Sushiswap was founded by an anonymous person or group known by the pseudonym Chef Nomi. This developer person or team will get a 10% share of all SUSHIs released.