What is SushiSwap?
SushiSwap is a DEX or decentralized exchange that originated as a fork of the well-known Uniswap. SushiSwap is a decentralized and managed protocol that enables the exchange of ERC-20 tokens created in the Ethereum network. These exchanges are made possible by users contributing their assets to pools that provide liquidity for traders seeking to make these exchanges, earning revenue from the commissions generated by the protocol.
Unlike the centralized exchange (CEX), which provides cryptocurrency trading through an order book, SushiSwap uses a mechanism called AMM (Automated Market Making), which uses smart contracts to form and manage liquidity pools.
Participants lock their tokens through these contracts, thereby providing more liquidity in the market, and receive a SUSHI token in return.
Currently, the maximum supply of SUSHI is 250 million units. With each new unit, 40 SUSHI are minted, and all 250 million tokens must be issued by November 2023.