SushiSwap (SUSHI) is an example of an Automated Market Maker (AMM). AMMs are decentralised exchanges that use smart contracts to create markets for arbitrary token pairs, and are becoming increasingly popular among cryptocurrency users.
SushiSwap will launch in September 2020 as a fork of AMM Uniswap, which has become synonymous with the decentralised finance (DeFi) movement and the resulting DeFi coin trading boom.
SushiSwap aims to expand the AMM market and offer features not previously available on Uniswap, such as enhanced benefits for network users through its own token, SUSHI.
Who Are The Founders?
Chef Nomi, a pseudonym, is said to be the founder of SushiSwap. Little is known about Chef Nomi and his reasons for leaving Uniswap.
Sushiswap and 0xMaki, also known as Maki, are the other two pseudonymous co-founders of the project. They are responsible for the programming, product development and commercial operation of SushiSwap.
Recently, Sam Bankman-Fried, CEO of derivatives exchange FTX and quantitative trading firm Alameda Research, took de facto control of SushiSwap.
Bankman-Fried is a well-known bitcoin market participant and expert who frequently appears in media interviews.
What Makes SushiSwap Different?
Basically, all exchanges are the same. However, we can already see that the number of items exchanged is higher in order to reach a larger audience. SushiSwap is basically an AMM that allows automated trading of liquidity between any two cryptocurrencies.
Its primary target market consists of DeFi traders and other businesses looking to profit from the rise of project tokens and create liquidity.
AMMs do not require order books and avoid challenges such as liquidity issues faced by traditional decentralised exchanges. SushiSwap aims to improve the products of its parent company, Uniswap, by allowing consumers to have a greater impact on the company’s operations and future.
The platform takes a 0.3% cut of all transactions that take place in its liquidity pools, and the SUSHI token is used to compensate users for a portion of these costs. In addition, SUSHI gives users administrative rights.
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