Sushiswap has garnered significant attention in the market as the decentralized exchange, with a native token SUSHI, has successfully completed its migration from Uniswap. We previously covered SushiSwap when it launched on August 27, 2020.
In essence, SushiSwap incentivized users to provide their uniswap LP tokens (tokens representing their ownership in a specific uniswap pool comprising two assets) to SushiSwap in exchange for aggressive Sushi rewards. The end result being a migration where SushiSwap redeemed the remaining LP tokens on Uniswap and use the underlying assets as liquidity in identical pools on SushiSwap. A vampire attack draining the liquidity out of Uniswap. The project was also faced with drama this week as the key founder, Chef Nomi, sold a majority of his Sushi for $13M and handed control over to SBF, the founder of FTX exchange and Alameda Research.
As a TLDR, there are a few important takeaways to share
- Crypto competition is ruthless and will continue to be for the foreseeable future. Uniswap has not launched a token, but plans to, and SushiSwap beat them by essentially forking Uniswap and offering rewards in a native governance token while draining a good chunk of Uniswap’s liquidity. (Chart below). Granted since Uniswap’s liquidity spiked as people likely flooded in to deposit assets to then earn Sushi through their LP shares, Uniswap’s liquidity may jus