Overview

Sushi is a community-driven organization aimed at addressing the liquidity problem in decentralized finance (DeFi). The codebase encompasses a suite of permissionless and open-source smart contracts that operate under the SushiSwap Protocol. This includes the original SushiSwap Dex, lending, yield instruments, a multichain exchange, tools for token vestings and payment streams, and more. 

Launched in September 2020 as a fork of Uniswap, the platform was originally called SushiSwap,  an Automated Market Maker (AMM) on the Ethereum Blockchain that enabled users to provide liquidity and execute permissionless swaps. In addition to mirroring Uniswap’s core features, SushiSwap introduced several innovations, including liquidity mining and the $SUSHI governance token among others.

Unlike other solutions that make incremental progress towards liquidity solutions, Sushi aims to create a broader range of network effects by intertwining multiple decentralized markets and instruments. As a result, the protocol has evolved and continued to develop its own brand, aiming to become a  one-stop shop for DeFi that operates with a multichain strategy. The ecosystem now features a variety of protocols across multiple DeFi verticals:

  • Decentralized Exchange: Sushi offers a decentralized exchange (DEX) where users can trade tokens without the need for intermediaries.
  • Yield Instruments: The platform provides yield instruments that enable users to earn passive income on their assets through various DeFi protocols.
  • Cross-Chain AMM: Sushi’s Automated Market Maker (AMM) operates not only on the Ethereum Blockchain but also bridges liquidity across different blockchain networks.
  • Token Streaming and Vesting Platform: Sushi facilitates token streaming and vesting arrangements for projects or individuals to manage token distribution and unlock schedules.
  • AMM Framework and Staking Derivatives: Sushi offers an AMM framework for developers to create customized AMM pools and staking derivatives for additional yield opportunities.

Sushiswap

SushiSwap is an automated market maker (AMM) and decentralized exchange (DEX) that offers a seamless and efficient way for users to trade assets directly without the need for a traditional order book. Instead of relying on an order book to match buyers and sellers, SushiSwap sources liquidity from users who are willing to lend their assets to the protocol in exchange for a share of the swap fees generated when their assets are traded.

In SushiSwap, like in most AMMs, liquidity pools work by holding a specific amount of assets, which are paired together. 

  • Traders: Anyone can trade against this pool at any time, and each time a user makes a swap using a particular pair in the pool, a small variable fee is charged. 
  • Liquidity providers: Users can participate in liquidity pools by lending their assets to the pool and becoming Liquidity Providers (LPs). LPs earn a portion of the fees generated as a reward for providing liquidity to the pool.

Liquidity Pools

There are 3 types of liquidity pools:

  • Constant Product Pools: Constant Product (CP) pools were the first type of liquidity pool and use the formula x * y = k. These pools enforce a 50/50 equal weighting between the two assets in the pool. LPs must add an equal amount of both assets to the pool to maintain the constant value of k.

Sushi Breakdown 1 3

  • Stable Pools: Stable pools are suitable for trading similar assets, such as stablecoins. These pools are cost-effective for trading pairs with minimal volatility and slippage. They are commonly used for stablecoin pairs but can be applicable to other like-kind asset pairs as well.
  • Concentrated Liquidity Pools: Concentrated Liquidity (CL) pools are the newest addition to SushiSwap. LPs in CL pools concentrate their positions around a predefined price range that they set. This means they provide liquidity for only this specific price range, not the entire price curve. CL pools are more capital-efficient than other pool types and can provide higher yield opportunities with less liquidity capital. However, they require more active management and are recommended for users with a more hands-on investment approach.
    • Positions are represented as ERC721 NFTs.
    • A multicall function allows to perform batched calls, so that users can perform multiple contract calls in a single transaction.

Sushi Breakdown 2 3

Liquidity Providers (LPs) and SLP Tokens

Users who provide liquidity to SushiSwap are known as Liquidity Providers (LPs). In return for their contribution of liquidity, LPs receive Sushi LP (SLP) tokens as a receipt. These SLP tokens represent the LP’s share of the liquidity pool and the fees generated from trades.

SLP tokens hold significant value for LPs, as they can be used to accumulate more yield over time or redeemed for the underlying deposit along with any fees accrued on top. This liquidity cycle incentivizes users to continuously provide liquidity to SushiSwap, ensuring the platform maintains deep liquidity on every chain it is deployed on.

SushiSwap v3 – Concentrated Liquidity

SushiSwap introduced concentrated liquidity in its v3 upgrade. With CL, liquidity providers can focus their funds within a specific price range, boosting capital efficiency and reducing slippage during trades. Additionally, v3 introduced numerous enhancements and expanded the operations across 20 different networks. 

One of the most notable features of SushiSwap’s concentrated liquidity is that it can offer advanced liquidity management strategies thanks to an integration with Steer Protocol and Gamma Strategies. 

  • Steer Protocol’s Smart Pools bring advanced features and strategies that make managing LP positions easy. Using smart automation and intelligent algorithms, Steer simplifies LP management, saving time and effort. LPs benefit from optimized capital allocation, risk reduction plans, and seamless integration with Sushi’s ecosystem. 
  • Addressing the same concern of v3, Sushi’s Concentrated Liquidity on Gamma v2 offers automated LP management with intelligent strategies like “Narrow,” “Wide,” and “Stable.” These strategies cater to different risk levels and market conditions, empowering LPs to maximize their profits with less risk and effort. Additionally, Merkl by Angle Protocol, integrated within Gamma, allows LPs to claim $SUSHI rewards without staking their LP positions.

SushiXSwap

SushiXSwap is Sushi’s cross-chain Automated Market Maker (AMM) designed to facilitate seamless and cost-effective swaps across multiple blockchain ecosystems. Leveraging LayerZero’s Stargate protocol, SushiXSwap enables users to execute cross-chain swaps without any additional lockup periods or fees.

  • Efficient Cross-Chain Swaps: SushiXSwap allows users to swap assets between different blockchain networks without incurring additional fees or delays. The platform leverages Stargate’s technology to ensure quick and effective cross-chain transactions.
  • Deep Liquidity on Both Chains: Unlike some competitors, SushiXSwap sources liquidity not only on the source chain but also on the destination chain. This approach ensures that users can always trade through deep liquidity, leading to better prices and improved trade execution.
  • Utilization of Sushi’s Liquidity: SushiXSwap taps into Sushi’s own liquidity pools on every chain involved in the cross-chain transaction. This strategy guarantees access to abundant liquidity, enhancing the overall trading experience.
  • Secure Cross-Chain Bridging: SushiXSwap utilizes Stargate’s secure cross-chain bridges, ensuring that transactions remain decentralized and secure while facilitating seamless asset transfers between chains.
  • Scalability for Future Chains: SushiXSwap’s integration with Stargate allows it to scale effortlessly to accommodate an expanding number of blockchain networks in the future.
  • Continuous Bridge Aggregation: To ensure the platform always finds the most cost-effective route and best prices for swaps between any two tokens on all chains, SushiXSwap plans to aggregate additional bridges in the future. This approach optimizes trading efficiency and reduces costs for users.
  • Modular and Composable Design: SushiXSwap is built in a modular and composable manner, simplifying the integration of various bridge protocols into its aggregator interface. This design fosters flexibility and interoperability, enabling seamless access to a variety of bridge options.

Sushi DEX Aggregator

DEX aggregators play a vital role in consolidating liquidity from various exchanges within a single blockchain. By utilizing complex algorithms, these aggregators find the most cost-effective routes for users’ swaps. The Sushi DEX aggregator functions as a universal router, enhancing the existing infrastructure, managing diverse inputs, and ultimately maximizing advantages for our users.

The prime incentive for utilizing a DEX aggregator is cost savings. Just like other aggregators, the Sushi DEX aggregator connects to multiple decentralized exchanges and liquidity sources. Our multi-chain approach enables us to offer competitive prices across various chains. Our intelligent routing algorithm skillfully navigates through different liquidity pools, exchanges, and routes to ensure that your trades are executed at the most optimal prices.

 When a token is not accessible, trades are directed to other DEXs, thereby expanding the scope of tradable tokens. This expanded token selection draws more users to the platform, resulting in increased swap fees for liquidity providers (LPs) and attracting additional liquidity through a positive cycle.

The Sushi DEX aggregator isn’t confined to Ethereum alone; it’s multi-chain and supports cross-chain swaps, exemplified by SushiXSwap. This means that you can trade tokens across different chains, extending beyond Ethereum. This brings more flexibility and convenience to trading.

Trident

Trident is not just another automated market maker (AMM), but rather a production framework that enables the creation and deployment of various AMMs. Unlike traditional AMMs like Uniswap v3 and Curve v2 that hard-code specific pool types into their interfaces, Trident offers a more flexible and versatile approach. It provides a unified interface, called the IPool interface, that consolidates the common underlying methods required for AMMs.

  • Framework for AMM Development: Trident is a production framework designed to facilitate the development and deployment of different types of AMMs. Instead of being a specific AMM itself, Trident offers a set of tools and methods that allow developers to create any AMM they require.
  • IPool Interface: The IPool interface is at the core of Trident. It contains essential methods such as swap, flashSwap, mint, burn, and more. Every Trident pool contract extends this interface, enabling a standardized approach to AMM development.
  • Advantages of Interface-Based Programming: Trident follows the interface-based programming pattern, which offers several benefits for Sushi’s future growth and DeFi as a whole. It allows for easy integration of future competitive AMMs into Trident, enables the creation of dynamic liquidity types without the need for a new framework, and prevents counterproductive game theory by allowing projects to tailor pool types to fit their strategies.
  • Endless Possibilities: The IPool standard opens up a world of possibilities for innovative AMM designs. It can be used to build AMMs for trading decentralized options, handling infinitely many stablecoins, supporting zero-coupon bonds, and much more.
  • Streamlined Development: By offering a standardized interface, Trident streamlines AMM development and encourages rapid advancements at the community level. Developers can build on top of existing patterns and methods, leading to more efficient and collective progress in the field of AMMs.
  • Incorporating External Developers: Trident allows external developers to engineer high-volume pools and earn fees from the generated liquidity. This opens up opportunities for collaboration and further growth in the DeFi ecosystem.

Yield Farming

Yield farms are an integral part of the DeFi ecosystem, especially for AMMs like SushiSwap. They offer users an additional way to earn yield on their provided liquidity, in addition to swap fees. Yield farms utilize Sushi Liquidity Provider (SLP) tokens, which are received by LPs when they provide liquidity to a pool. These SLP tokens represent the LP’s share (percentage) of a specific pool and can be “staked” in a yield farm.

When LPs stake their SLP tokens in a yield farm, they earn extra $SUSHI rewards on top of the swap fees they already receive. By staking SLP tokens, LPs have the opportunity to compound their earnings and increase their overall yield. However, it is essential to note that LPs can also choose not to stake and simply hold their SLP tokens to accumulate swap fees.

Onsen Farms

Onsen farms are a special type of yield farm offered by SushiSwap. Onsen is a liquidity provision reward system designed for relatively new tokens or tokens that have seen significant activity recently. In Onsen farms, LPs receive double rewards, earning not only $SUSHI but also the native non-base token in the farm (the first half of the pair).

By participating in Onsen farms, LPs receive three types of yield:

  • Swap Fees: LPs earn fees from the liquidity pool when users make swaps.
  • $SUSHI Rewards: LPs receive $SUSHI as additional rewards for staking their SLP tokens in the Onsen farm.
  • Native Token Rewards: LPs also receive rewards in the native token of the non-base asset in the Onsen pair.
MasterChef

The MasterChef contract serves as a crucial component in Sushi’s yield farming ecosystem, acting as the overseer and distributor of $SUSHI token rewards to liquidity providers. It incentivizes users to contribute liquidity to the SushiSwap platform by offering attractive rewards in the form of $SUSHI tokens.

  1. Adding Liquidity Pairs and Setting Allocation Points: The MasterChef contract allows for the addition of liquidity pairs or ERC20 tokens. For each added token or pair, a corresponding allocation point is set. This allocation point represents the share of the total SUSHI token rewards that will be allocated to that particular token or pair.
  2. Distribution of $SUSHI Rewards: The MasterChef contract continuously distributes a constant number of $SUSHI tokens per block to liquidity providers. The number of tokens rewarded is determined based on the allocation points assigned to each liquidity pair or token.
  3. Participating in Yield Farming: To participate in yield farming and earn $SUSHI rewards, users need to deposit or stake their LP tokens (liquidity pool tokens) in the MasterChef contract. LP tokens are obtained by providing liquidity to SushiSwap’s liquidity pools, where users contribute both assets to create trading pairs.
  4. Harvesting Rewards: Over time, users can harvest a portion of the $SUSHI rewards relative to the ratio of their liquidity provided compared to the total liquidity staked in the pool. This means that users with a larger share of the total liquidity will receive a proportionately higher amount of SUSHI rewards.

The MasterChef contract’s fairness lies in its ability to transparently and automatically distribute rewards based on the contribution of liquidity by each user. As a result, liquidity providers are incentivized to participate in yield farming, contributing to the liquidity of the platform and sharing in the benefits of the $SUSHI token rewards.

MasterChef v2

MasterChefV2 is the second iteration of the MasterChef contract and is also utilized by Sushi for yield farming. It operates similarly to MasterChef but comes with added functionality to include secondary rewarders, enabling the distribution of additional tokens alongside $SUSHI.

  • Similarity to MasterChef: MasterChefV2 functions similarly to the original MasterChef contract. It allows users to stake their LP tokens in the contract and earn $SUSHI rewards based on their contribution to liquidity.
  • Addition/Update of ERC20s and Pools: The contract’s owner has the authority to add or update new ERC20 tokens or liquidity pools. For each added pool, an allocation point is set, which determines the proportion of $SUSHI rewards that will be distributed to liquidity providers of that particular pool.
  • Additional Rewarders: MasterChefV2 allows the inclusion of additional rewarder contracts alongside the pools. These secondary rewarders facilitate the distribution of extra tokens alongside the harvested $SUSHI rewards. By doing so, users can earn multiple tokens as rewards for their liquidity contributions.
  • Using Dummy Token for $SUSHI Distribution: MasterChefV2 uses a dummy token to accumulate and distribute $SUSHI to the LP tokens added to the contract. This approach ensures efficient and transparent reward distribution.
  • Harvesting Rewards: Users who participate in yield farming using MasterChefV2 deposit or stake their LP tokens in the contract. Over time, they can harvest a portion of the rewards based on the ratio of their liquidity provided compared to the total liquidity staked. Upon harvesting, if a rewarder contract is set, users will receive additional tokens alongside the $SUSHI rewards they receive.
MiniChef

The MiniChef contract provides the same functionality as the MasterChef contract with the main difference being that it is deployed across networks, while the MasterChef is deployed on Ethereum mainnet.  

BentoBox

SushiSwap’s BentoBox is a vault designed to hold tokens and generate yield through flash loans and various strategies for any protocol built on top of it. It serves as a versatile and gas-efficient infrastructure for various decentralized applications. By leveraging the BentoBox, protocols can access several benefits that enhance efficiency, flexibility, and capital utilization within DeFi.

Tokens held within the BentoBox can be flash loaned, enabling instant access to liquidity. The fee for flash loans is 0.05%, and this fee is distributed to the shareowners within the BentoBox. Multiple assets can be flash loaned simultaneously.

For users, BentoBox offers several advantages as well:

  • Gas-Efficient Interaction: By leveraging the shared token vault, users can engage with various applications without incurring excessive gas fees.
  • Cost Savings: Users of dApps built within BentoBox can save on network wallet fees since tokens are pre-approved for use within the vault. This streamlined approval process reduces friction and saves users time and gas costs.
  • Automated Yield Generation: One of the most exciting features of BentoBox is its ability to algorithmically generate yields for token depositors. Users who deposit their tokens into the vault passively earn a yield on their assets through predefined strategies.

It’s important to note that while the BentoBox wasn’t ERC-3156 compliant at its release, it provides the flexibility and security of using push instead of pull for returning funds, making it an efficient and secure solution for flash loans.

The benefits of the BentoBox can be summarized as follows: 

  • Extra Yield from Flash Loans: Protocols built on BentoBox can access extra yield through flash loans, which are instant and uncollateralized loans offered within a single transaction.
  • Extra Yield from Strategies: BentoBox supports various strategies that can generate additional yield for the tokens stored within the vault.
  • Optimized Deposit, Withdraw, and Skim Functions: The BentoBox provides optimized functions for depositing, withdrawing, and skimming tokens. Additionally, it automatically converts Ethereum ($ETH) to Wrapped Ether ($WETH) for efficient token management.
  • Low Gas and Fixed Gas Transfers: Transferring tokens within the BentoBox incurs low gas costs and maintains fixed gas fees, ensuring cost-effectiveness for users.
  • Simplified Token Approval: BentoBox eliminates the need to reapprove tokens for each protocol, simplifying the approval process for users.
  • Built-in Proxy Contract Factory: The BentoBox incorporates a minimal proxy contract factory, eliminating the need for developers to create their own and promoting composability.

Strategies

The BentoBox implements a simple strategy system for each token stored within the vault. A strategy is a smart contract designed to invest a single token to generate profits, which are returned in the same token. Strategies act like a roadmap for the tokens held within the vault, guiding them through various yield-generating tools available within the Sushi ecosystem. 

The BentoBox community and the Sushi team play a crucial role in determining which strategies are considered safe enough to enable within the system. Additionally, there is a hardcoded period of 14 days. This gives the community and the core team enough time to assess the safety and risk factors of potential strategies before enabling them. 

The governance process ensures that strategies are thoroughly evaluated, and only those deemed secure and suitable for the BentoBox’s safety and users’ interests are approved for implementation. 

The safest strategies within the BentoBox are those that exhibit the following characteristics:

  • Principal Safety: The strategies can only ever grow in token amounts, ensuring the safety of the principal amount invested. This means that the strategies should not incur any losses on the original investment.
  • Flexibility in Deposits and Withdrawals: Users can deposit and withdraw funds from these strategies at their discretion, providing ease of access to their invested tokens.

Some examples of safe strategies include:

  • The SushiBar: The SushiBar allows users to invest $SUSHI tokens, which are then held as xSUSHI. The xSUSHI tokens represent the user’s share of the SushiBar pool and are eligible for rewards and fees generated by the SushiSwap protocol.
    • Note that this strategy is no longer active. 
  • Lending Protocols (AAVE & Compound): Depositing tokens into lending protocols like Aave and Compound can be considered safe strategies. These protocols allow users to lend their tokens to others in the DeFi ecosystem in exchange for earning interest on their deposits.

Amounts and Shares

When users deposit tokens into the BentoBox, they receive a proportional number of shares representing their ownership of the total token amount held within the BentoBox. As the amount of tokens in the BentoBox grows due to flash loan fees and profits from strategies, users receive returns on their shares, allowing for potential yield generation simply by depositing tokens into the vault.

Batching and Supported Tokens

The BentoBox supports a batching function that allows multiple BentoBox function calls to be executed in a single transaction, improving gas efficiency and reducing transaction costs.

While most ERC-20 tokens are compatible with the BentoBox, there are some tokens that should not be directly deposited into the vault for various reasons:

  • Rebasing Tokens: Direct support for rebasing tokens is not provided, as rebasing is often a visual trick and not an actual feature. However, most rebasing tokens can be wrapped, exposing the underlying balances as ERC-20 tokens, which can then be deposited into the BentoBox without issues.
  • Tokens with Significant Unit Value: Tokens where a single unit has significant value may not be suitable for the BentoBox. Gas optimizations and rounding can result in transactions that create “free” units of these tokens, which may lead to potential vulnerabilities.
  • Tokens with TotalSupply exceeding uint128: Tokens with total supply in token units greater than uint128 (approximately 38 decimals) may not be compatible with the BentoBox due to gas-saving considerations. However, this limit is usually sufficient for most tokens, even with 18 decimals commonly used.

To prevent grieving attacks on the amount-to-share ratio, a minimum of 1000 shares of each token must remain in the BentoBox or be emptied entirely. This minimum balance is usually insignificant, even for tokens with high value.

Furo – Streams and Vestings

Furo is a platform that specializes on the payroll process and provides users with extensive control over token disbursement through its token streaming and vesting creation functionalities.

Token Streaming

Furo enables the creation of money streams for tokens, allowing seamless and automated distribution of tokens to their recipients over any desired timeframe. This innovative feature offers a solution for organizations to streamline their payroll processes and eliminate administrative burdens. 

Rather than managing periodic payments, companies can make a one-time deposit to the Furo contract, which then initiates the token streaming process, delivering funds directly to employees at specified intervals. 

Employers retain the flexibility to top off the stream as needed, and Furo ensures continuous and timely dissemination of funds to recipients.

Token Vestings

In addition to token streaming, Furo empowers users to create token vestings with fully customizable cliffs and schedules. Token vestings play a vital role in allocating tokens to core team members or implementing initial token allocations for various projects. With Furo’s vesting functionality, organizations can easily set up vesting schedules that align with their specific needs and requirements.

OpenMEV

OpenMEV is a protocol that provides traders and arbitrageurs with a more secure and efficient way to interact with the blockchain network, ensuring that transactions are protected and profits are maximized while maintaining credible neutrality and fairness in the process.

  1. Client Transaction Submission: Users sign their transactions and send them to OpenMEV’s backend using methods like eth_sign or eth_signTransaction.
  2. Transaction Broadcasting: The backend repeatedly broadcasts the serialized transactions to participating miners, including Eden Network and Flashbots, in every block.
  3. Transaction Status Updates: Users can request transaction status updates via JSON-RPC or receive them automatically through the SDK.
  4. Cancellation and Reverts: Users can cancel unconfirmed transactions for free, and transactions that get reverted cost no gas.

Some of the public services provided by OpenMEV include:

  • Trading Proxy: Offers private communication between traders and block producers, enabling efficient transaction protection and profit maximization.
  • OpenMEV Explorer: Provides tools to enhance transparency of profit opportunities on the blockchain network and reduce information asymmetry.

OpenMEV also has a Sushiswap integration that focuses on transaction batching for arbitrage, controlling transaction ordering to prevent arbitrage and front-running opportunities from being exploited by miners and bots. This way, OpenMEV’s neutral platform aggregates transactions for extracting MEV (Miner Extractable Value) profits, returning them to traders.

Deprecated products

Kashi – Lending and Borrowing

In an effort to realign focus and allocate resources towards enhancing the DEX (Decentralized Exchange) offerings, Sushi made the decision to temporarily shift away from Kashi. This shift would allow the core contributors to prioritize the development of the core DEX stack. 

MISO – Launchpad

MISO v2 is a collection of open-source smart contracts designed to streamline the launch of new projects on the SushiSwap exchange. MISO seeks to attract fresh capital and trading activity by enhancing the appeal of SushiSwap as a launchpad for tokens from various communities and creators. MISO v2 allows anyone to introduce their tokens across multiple ecosystems. Leveraging Sushi’s efficient smart contracts, MISO v2 significantly reduces the amount of ETH required for these activities.

Shoyu – NFT Marketplace

As Sushi expanded its ecosystem, Shoyu was conceptualized to tap into the flourishing NFT space. Initially planned as an open marketplace, its trajectory soon turned towards a more curated experience. However, faced with community expectations and rapid developments in the NFT sector, Shoyu underwent a re-evaluation, spearheaded by a dedicated team including Ryan and Salman.

Shoyu 2.0 promised a suite of features to bridge creators and collectors on the Ethereum mainnet, enriched by social connectivity. Yet, after the launch of the Shoyu Beta on Goerli Testnet on 24th January 2023, updates became scarce. Recent communications from a SushiSwap representative revealed that Shoyu’s development has been halted and the product has been deprecated.

Why the Project was Created

SushiSwap was created with the intention of building upon Uniswap’s success while introducing new functionalities to the DeFi ecosystem. The addition of liquidity mining aimed to incentivize liquidity providers, fostering a vibrant ecosystem while also ensuring decentralization through governance features. The project’s inception was a response to the growing demand for DeFi solutions and the desire to offer users more control over the protocol’s future.

At the time, the protocol was started by an anonymous developer ChefNomi, and there was no formal whitepaper. Later on the community drafted what came to be the original whitepaper. Sushi, initially launched in August 2020, experienced a phase of ascent where it momentarily surpassed Uniswap in terms of Total Value Locked (TVL). This achievement was fueled by a liquidity mining strategy that aimed to attract liquidity from other VC-backed AMMs. 

By early 2021, Sushi had firmly established itself as a prominent decentralized exchange under the guidance of 0xMaki and the team. It positioned itself as an alternative to Uniswap, advocating for decentralization. In September 2021, 0xMaki transitioned to an advisory role. In that same month, ChefNomi sold his $SUSHI position, prompting a 73% price crash and creating a massive backlash from the project’s supporters and accusations of an exit scam.One week later the pseudonymous developer publicly apologized for liquidating all his $SUSHI holdings and returned all 38,000 $ETH ($14M at the time) back to the original developer fund wallet. Following the news that the $14M in $ETH had been returned, the price of SUSHI soared from $2.26 to $2.70, a rise of 16%.

This ultimately led to Nomi transferring ownership of the project to FTX CEO Sam Bankman-Fried.

While Sam Bankman-Fried, Founder of FTX, had offered his thoughts in the past, starting with “Chef Nomi sucks”, he ended up rectifying and offering to take over the project.

Sam Bankman-Fried (SBF) expressed his surprise at the possibility of taking control of SushiSwap when Chef Nomi tweeted about it. He saw it as an opportunity to assist SushiSwap through a challenging time. SBF’s initial focus was on ensuring a smooth transition of control through a multi-signature (MultiSig) arrangement.

Regarding the selection of MultiSig holders, SBF mentioned that the process would involve nominating individuals on Twitter and then conducting a vote by SushiSwap holders.

With control over SushiSwap, SBF’s immediate goals were to facilitate a successful transition and the MultiSig setup. After that, he intended to step back from directly controlling the project. He expressed ideas for SushiSwap’s future, including integrating margin trading, borrowing, and lending features, and potentially building a version on the Serum protocol. However, he emphasized that any decisions would be community-driven, not unilateral.

In the aftermath of 0xMaki’s departure, Sushi faced operational challenges and a lack of concentrated focus on its long-term vision. Internal conflicts and an unsuccessful Frog Nation takeover left Sushi in a weakened state. The remaining team took charge of maintaining operations, while community members played a pivotal role in resolving issues and forging a new direction with a reenergized team. This period of trial led to the formulation of Sushi’s forward-looking proposal: Sushi 2.0 Restructuring for the Road Ahead. The proposal received overwhelming community support, with a total of 9.6 million votes in favor on May 11, 2022. This proposal mandated the identification of a Head Chef for Sushi. Subsequently, the team embarked on an organized search process, wherein candidates had the opportunity to apply, nominate themselves, participate in multiple rounds of interviews, and engage with key Sushi stakeholders.

Sushi 2.0

SushiSwap soared to prominence in 2021, gaining recognition within the DeFi ecosystem. Starting with a fair token distribution, the platform quickly evolved into a diverse team striving for excellence. Despite remarkable achievements, operational inefficiencies and a lack of long-term focus became apparent in the latter part of the year. This led to a decline in Sushi’s stature, marked by internal turbulence and turnovers.

Following a failed Frog Nation takeover, the remaining team and the community took charge of the situation. Months of dedicated effort resulted in progress:

  • Trident 173 release.
  • MISO v2 & MultiChain launch.
  • Shōyu 2.0 redesign progress.
  • Introduction of limit orders.
  • Implementation of Sushi Guard.
  • Kashi UI redesign.

Organizational advancements paralleled product releases:

  • Retained a loyal team and added new members.
  • Reestablished key stakeholder relationships.
  • Appointed an external operations advisor.
  • Established fair compensation structure.
  • Proposed SushiDAO legal structure.
  • Reduced emissions to maintain profitability.
  • Halved monthly operational expenses.
  • Rehashed proposals for Treasury stability.

The initial proposal for Sushi 2.0 comprised 3 actionable components:

  • Team Retainment: Allocate 6 million $SUSHI over 4 years to retain and expand the team’s functional diversity, including Engineering, Design, Business Development, Marketing, Community Engagement, Shōyu, Operations, and Advisory. This immediate expansion would involve retaining 10 vetted full-time software developers across Sushi and Shōyu.
  • Compensation Committee: Establish a compensation committee responsible for:
    • Compensation negotiations.
    • Tracking TWAP and approving vested $SUSHI based on roadmap completion.
    • Assisting with future hire compensation negotiations.
    • Monitoring formal roles and responsibilities.
    • Negotiating future compensation plans.
    • Reviewing performance evaluations and promotion pathways.
    • Vet, approve, and disclose budget requests.
  • Leadership Search: Initiate a formal executive leadership search process through a community, team, and token holder-based approach. Over 90 days, vet candidates through stakeholder interactions and evaluations, culminating in governance voting to appoint new leadership.

The projected costs encompassed retained contributors’ salaries, roles yet to be filled, and incentives. The sum amounted to 5.75M $USDC for annual salaries, 2.3 million $SUSHI for multi-year vested outlay, and 2.4 million $SUSHI for performance incentives (if met).

Considering existing Treasury holdings and diversified assets, Sushi’s position was still stable. Despite allocating a significant portion to talent retention, Sushi generates substantial revenue, and the potential for further treasury optimization through Kanpai implementation remained in place.

On October 3rd, 2022, Sushi unveiled Jared Grey as the Head Chef to steer and realize the Sushi 2.0 roadmap and vision. This appointment marked a significant step forward for Sushi, which had committed to a comprehensive executive search process in its 2.0 proposal.

Roadmap

A roadmap was posted on January 18, 2023. 

Sushi outlined 5 goals for the year, which includes the following:

  • Make Sushi a market-leading DEX obsessively focused on users.
  • Release our DEX aggregation router, increasing swap volumes & fees.
  • A decentralized organizational structure to promote product autonomy.
  • Newly optimized tokenomics & improving liquidity, sustainability, community ownership, & Treasury diversification.
  • Launch Sushi’s decentralized incubator: Sushi Studios.

Market-Leading DEX

Sushi aims to become a market-leading DEX by improving its product stack and delivering feature parity, providing a firm foundation that enables innovation. These include:

  • Aggregation Router 
  • Concentrated liquidity
  • Sushi Academy

Aggregation Router

Sushi built its aggregation router in 2022 and plans to capitalize on its introduction in Q1 2023 to enter the DEX aggregation business. 

This will be leveraged with the Trident framework across multiple networks, with token holders benefiting from the increased revenue. 

Governance

A governance dashboard will be built to showcase Sushi’s budget, project wallets, and audit results, among others. 

Sustainability

Sushi has promoted sustainability by doing the following:

  • Redesigned tokenomics to encourage LPs to migrate to Sushi for increased ROI.
  • Revamped the product stack to focus on aggregation to scale swap volumes.
  • Promoted deep integration with their network partners, providing them equitable inclusion in the Sushi DEX to help make Sushi the go-to exchange for new token launches.
  • Took measures to secure the runway for multi-year operations. 

As a result, Sushi hopes to multiply its market share by 10x in 2023. 

Sushi Studios

Sushi Studios is Sushi’s decentralized incubator that will license the brand to launch independently-funded projects to support ecosystem growth without burdening the DAO treasury. Products like Shoyu, their forthcoming NFT marketplace scheduled for a Q1 launch promoting creator-first utility & features, their perpetual DEX platform, & several stealth products currently in development. 

These products help increase Sushi’s brand without hindering the DAO’s core DEX focus, the main historical obstacle to Sushi’s horizontal product direction. Sushi has a solid & resilient brand representing the best of DeFi; with Sushi Studios, and can leverage the brand to reach all users.

Sector Outlook

The combination of a decentralized exchange, yield instruments, cross-chain AMM, token streaming and vesting platform, AMM framework, and staking derivatives create a comprehensive DeFi ecosystem. By intertwining these products and embracing decentralized governance, Sushi aims to foster broader network effects and address the liquidity problem in the DeFi space.

Potential Adoption

SushiSwap’s potential adoption lies in its ability to attract users who prefer permissionless and decentralized options and who frequently use a diversity of DeFi products, such as payment streams, liquidity provision, token swaps… Moreover, by being present on multiple chains, Sushi has the potential to become the go-to place for all things DeFi. 

Chains

SushiSwap is available in the following chains: 

  • Ethereum 
  • Arbitrum
  • Base 
  • Polygon
  • Optimism
  • Binance Smart Chain
  • ThunderCore
  • Gnosis
  • Avalanche C-Chain
  • Fantom
  • Arbitrum Nova
  • Harmony
  • Metis Andromeda
  • Kava EVM 
  • BitTorrent Chain
  • Boba Eth
  • Boba Avax
  • Boba BNB
  • Celo
  • Fuse
  • Huobi Eco Chain
  • Moonbeam
  • Moonriver
  • OKXChain
  • Palm
  • Telos EVM
  • Polygon zkEVM
  • Core Blockchain

Business Model

SushiSwap operates as a digital marketplace where users can trade, earn yield, distribute payments, and swap assets cross-chain.

The protocol earns money by taking a small fee from each trade. These fees are its main source of income. At the same time, the platform encourages users to participate by offering them incentives in the form of extra tokens. People who provide liquidity to the trading pools or stake their tokens can earn these rewards. Other costs include development expenses as well as community support.

Fee Breakdown

Fees play a crucial role in SushiSwap’s ecosystem as they contribute to attracting liquidity and supporting the platform’s growth and development. A fee of 0.3% is charged on every swap conducted through Sushi’s smart contracts. This fee is then split into two parts:

  • Liquidity Provider (LP) Rewards: 0.25% of the swap fee is immediately redistributed to liquidity providers. LPs receive these rewards as an incentive to provide liquidity to the platform.
  • Sushi Treasury: The remaining 0.05% of the swap fee is directed to the Sushi treasury. These funds are used to support continued growth and finance future initiatives of the protocol.

It is worth noting that the 0.05% portion of the swap fee, which was previously allocated to users staking $SUSHI for $xSUSHI, is currently directed to the treasury for a specific period (until December 2023) as part of the implemented Kanpai 2.0.

There is also a 0.05% fee for flash loans from the BentoBox. 

Until December 2023, xSushi fees are directed to the Treasury as per Kanpai 2.0.

Rewards

Rewards are a vital component of the ecosystem, incentivizing liquidity providers to contribute their assets to the platform. These rewards are predetermined and distributed daily in equal amounts. The allocation of rewards to an LP is based on the number of SLP (Sushi LP) tokens they hold and their percentage share of the pool.

For instance, if an LP holds SLP tokens that represent 3% of the SUSHI/ETH pool, they would be entitled to claim 3% of the daily SUSHI/ETH rewards from the pool. The reward amount an LP stands to receive can fluctuate depending on changes in their percentage share of the pool caused by other users depositing more liquidity.

Sushi funds rewards through swap fees, as described earlier. Additionally, individual DeFi teams may also subsidize rewards in Onsen farms, which are “double reward” farms offering both $SUSHI and another token to LPs. In such cases, Sushi provides the $SUSHI rewards, while the other token rewards are supplied by the respective DeFi team.

The MasterChefv2 contract oversees rewards on Ethereum Mainnet, while dedicated MiniChef contracts handle rewards on each of the chains where Sushi is deployed. These reward mechanisms encourage active participation from liquidity providers and contribute to the platform’s liquidity and growth.

Tokenomics

In December 2022 Jared Grey and David Wilson submitted a proposal to modify the original $SUSHI tokenomics model in order to favor sustainability and long-term growth. The primary goals are:

  • Incentivize Liquidity Providers (LPs): The new model focuses on rewarding LPs with scalable volume-based and non-dilutive token rewards. This approach aims to attract more liquidity to the platform, promoting its growth.
  • Support DEX Product Improvements: The proposal seeks to enhance the DEX product stack, including features like an aggregation router and concentrated liquidity pools (CLPs), to increase LP opportunities and market share.
  • Optimized Rewards Mechanism: SushiSwap aims to introduce an optimized rewards mechanism that encourages the growth of automated market makers (AMMs) and aggregated trading volume, capturing a larger share of the market.
  • Governance Improvement: The proposed changes are expected to improve governance by creating a more equitable model that aligns incentives with participation and risk.

The former tokenomics of SushiSwap were identified as having certain challenges. The distribution of fee revenue and emissions disproportionately favored the Sushi Bar without requiring time-based commitments. This approach may not effectively promote liquidity sustainability. The proposal for new tokenomics suggested that the new model should distribute rewards based on swap fees and maintain token supply stability through mechanisms like burns and time-locks, while also rewarding high-volume pools.

Token Supply

Sushi’s total supply is capped at 250 million tokens, a milestone that is projected to be reached by November 2023. 

Token Distribution

Sushi tokens were distributed through a fair launch, ensuring that no pre-sale or special deals were available to investors. The distribution was achieved through the ONSEN program, which utilized liquidity mining to distribute 90% of the Sushi tokens.

10% of the Sushi tokens were allocated to the treasury. These tokens are intended to support the Sushi ecosystem by covering various expenses, such as team member compensation, infrastructure costs, and other expenditures related to maintaining and developing the Sushi brand.

Staking and xSUSHI

Sushi token holders can stake their tokens in the SushiBar to earn xSushi tokens in return. These xSushi tokens serve a dual purpose:

  • Fee Sharing: Originally, xSushi holders received a portion of the fees generated by the protocol. This distribution aimed to provide incentives to stakers and align their interests with the success of the platform.
  • Voting Power: xSushi holders also gain voting power on governance proposals. This allows them to actively participate in the decision-making process regarding the platform’s future developments and changes.

This model proved efficient for some time. However, it rewards non-sticky staking with zero-friction, which leads to non-optimal returns for LPs. The new tokenomics design aims to solve this problem and realign xSUSHI staking with risk-balanced rewards in time-locked tiers.

  • Remove non-sticky staking terms; introduce time-locked tiers for rewards.
  • Introduce a burn mechanism to reward tiers.
  • Substitute trading fee revenue rewards with emission-based rewards.
  • Institute a penalty for withdrawing collateral before stake maturity.

With these changes, the goal is to promote token value accrual from trading fees, incentivize long-term holding, and create a feedback loop based on risk.

Sushi Breakdown 3 2

Sushi Breakdown 6

  • LP distro is sent to pools with the most volume, based on a min/max value percentage to an individual pool, helping select the most profitable while reserving boosts for other pools.
  • Vol distro is a reward for swappers who meet a specific volume minimum and target to maximize a refund of the fees paid, which allows high-volume traders to negate fees.
  • The split can be adjusted as needed, possibly rewarding specific swap pools.

The goal is to auto-balance an increasing amount of fees to high-earning pools as well as time-locks to make assets less liquid and add deflationary mechanisms.

The burn/LLP amounts vary by lock tier. These amounts are either burned or used to increase POL (Protocol Owned Liquidity). Because burns occur before rewards payout, there is a deflationary effect from stakers who unstake before the full time-lock maturity. 

Sushi Breakdown 7

A mechanism for locked liquidity is introduced to enhance the ecosystem’s sustainability and create positive price pressure through market buys. This mechanism involves adding percentages of locked liquidity to a Sushi LP (liquidity provider) pool. The process works by converting half of the locked liquidity amount to $SUSHI tokens and the other half to the base pair chosen for the specific LP pool.

  • Positive Price Pressure: By adding locked liquidity to Sushi LP pools, the ecosystem benefits from positive price pressure generated by market buys. This approach aims to contribute to the sustainable growth of SushiSwap’s value.
  • Reduced Liquid Token Supply: Converting a portion of the locked liquidity to Sushi tokens and the base pair reduces the available supply of liquid tokens in circulation. This reduction in supply can contribute to price stability and appreciation.
  • Dynamic Base Pair Selection: The choice of the base pair for the LP pool’s locked liquidity is based on market conditions and demand. SushiSwap will assess the most suitable network and base pair to provide liquidity. This flexibility allows for efficient allocation without being limited by market depth concerns.
  • Treasury Income: The fees generated from the LP pool’s trading activity will be directed to the treasury. This income contributes to the financial health of the protocol and supports its ongoing development and growth.
  • Price Adjustment: The proposal outlines an average value adjustment strategy for committing smaller units of liquidity over an extended period. As the price of the tokens fluctuates, the provisioned LP contains a varying amount of Sushi tokens. This approach helps mitigate the impact of rapid price movements and stabilizes the LP’s value contribution.
  • Long-Term Impact: Over time, as liquidity increases and market conditions stabilize, the influence of temporary market conditions on the locked liquidity provisions diminishes. This means that the price pressure and stability benefits become more pronounced as the system matures.

Sushi Breakdown 8

LP Rewards

After deprecating the xSUSHI model, the new token design rewards LPs more for locking their stake longer. This way, the market conditions affect the number of rewards used to compensate stakers.

with about 10% of the total emissions going to LPs, and the revenue share distribution. It’s important to note that the captured fee-only accounts for 1/6th of the current model (i.e., 0.25% to LPs and 0.05% as revenue for the model), which can change dynamically to make fees on specific pools more competitive.

Sushi Breakdown 9

  • TVL Sushi comes from emissions from Sushi Bar locked tiers distribution.
  • Volume Split is the fee shares based on the LP locked tiers distribution.
  • Total/TVL is the payout in dollars per $1 staked.
  • APY is the percentage of the split.
  • TVL Sushi based on total pool TVL.

Governance

The protocol operates a decentralized governance system where $SUSHI token holders engage in the decision-making process and participate in voting. Through governance proposals, token holders can shape the future of the protocol. 

Any member of the SushiSwap community is encouraged to submit a proposal on our forums to suggest changes, improvements, or new initiatives for the SushiSwap ecosystem. 

Once a proposal gains traction in the forum, it may be considered for voting on Snapshot.  The core team will determine whether a proposal is ready for voting, and the community will then use their voting power to decide the outcome. 

SUSHI can be staked to earn xSUSHI, a more valuable token that gains value from platform fees. Holding xSUSHI or staking SUSHI in the SUSHI-ETH pool allows you to participate in governance through SUSHIPOWAH tokens.

SUSHIPOWAH is instrumental in the governance process of SushiSwap. The more you hold, the more influence you have in the decision-making process. A quorum of at least 5 million SUSHIPOWAH is required for a vote to pass.

By providing liquidity to SushiSwap’s token pairs, you receive SushiSwap Liquidity Provider (SLP) tokens. These tokens represent your share in the pool and qualify you to earn a proportion of the trading fees.

SUSHIPOWAH is used as a voting metric, and voting power is determined as follows:

  • Each $SUSHI token in the SUSHI-ETH liquidity pool holds a value of 2 SUSHIPOWAH.
  • Each $SUSHI token held via xSUSHI tokens is valued at 1 SUSHIPOWAH.

For a vote to pass and become binding, it must receive a quorum of at least 5 million SUSHIPOWAH.

Note that to participate as an eligible voter in any proposal on Snapshot, you must possess SUSHIPOWAH at the initiation of the vote. This measure is implemented to discourage potential influence by whales or flashloan activities and ensures a fair and balanced voting process within the community.

Multisigs and Signers

The Multisigs play a crucial role in decision-making within the SushiSwap ecosystem. There are two Multisigs: the Treasury Multisig and the Ops Multisig. Each Multisig requires a certain number of signatures for transactions to be executed.

  • Treasury Multisig:
    • Composed of 6 trusted members: @MatthewLilley, @0xGasper, @0xJiro, @LufyCZ, @sarangprikh22, @chillichelli.
    • Responsible for approving transactions from the development fund.
  • Ops multisig
    • Also composed of 6 members, including core team members.
    • Responsible for approving changes to smart contracts, such as adding/removing pools, changing pool weights, and more.

At least 3 out of 6 signers are required for both multisigs. 

Treasury and governance control

It’s important to emphasize that the treasury, which receives the redirected fees, remains under the governance control of the Sushi community. Any use of the accumulated fees from the treasury requires approval from token holders through the governance process. This mechanism ensures that community members have a say in how the treasury funds are utilized.

Risks

A risk framework for Sushi would contemplate all of the categories for which Sushi’s products are involved. This includes the risks associated with engaging in yield farming activities, particularly within the context of SushiSwap. A framework could identify 4 macro-categories of risk and discuss considerations and mitigations for each:

  • Smart Contract Risk: Associated with the security of underlying contracts governing Sushi protocol, including complexity, audits, and reputation of audit firms. Users should also evaluate contract upgradability and the potential introduction of vulnerabilities through upgrades.
  • Governance Risk: Evaluate the authority and security of the protocol’s governor(s) who can modify protocol logic. This involves admin controls granted to the DAO and its respective multisig. It will be worth keeping track of who the multisig signers are at any given time. 
  • Economic Risk: Assess risks associated with providing liquidity, including asset prices, and liquidity depth. Users should also account for hidden costs like price impact, deposit/withdrawal fees, and gas costs associated with yield farming.
  • Bridge Risk: Analyze the security and complexity of bridges used to transfer assets across chains as well as the use of LayerZero technology.

Security

In order to ensure high standards of security, SushiSwap has undergone multiple audits by different firms. These audits provide an analysis of the vulnerabilities at different levels, as well as the state of their resolution.

Audits

PeckShield Audit – September 3, 2020

  • High – 2 (1 Confirmed, 1 Partially Resolved)
  • Medium – 3 (2 Confirmed, 1 Fixed)
  • Low – 6 (6 Confirmed)
  • Notes & Additional Information – 2 (1 Confirmed, 1 Partially Resolved)

CertiK Audit – August 24, 2021

  • Critical – 0 (0 Confirmed, 0 Partially Resolved)
  • High – 2 (2 Acknowledged, 0 Partially Resolved)
  • Medium – 0 (0 Confirmed, 0 Partially Resolved)
  • Low – 2 (0 Confirmed, 2 Pending)
  • Notes & Additional Informational – 5 (0 Confirmed, 5 Pending)

Sushiswap’s Route Processor Audit by Zellic Audit – January 12, 2023

Route Processor is a contract that processes complex swap routes. It can mix pools from different DEXes such as Sushiswap and Uniswap in one route. It also allows for liquidity mergers and splits at arbitrary points of the route. The contract does not create routes; it merely processes routes that are created off-chain.

  • Critical – 0 (0 Resolved)
  • High – 0 (0 Resolved)
  • Medium – 1 (1 Resolved)
  • Low – 1 (1 Resolved)
  • Informational – 1 (1 Resolved)

Bounties

The SushiSwap team offers a ImmuneFi bug bounty program with rewards based on the severity of the identified vulnerability, using a five-level scale. All reports must include a Proof of Concept (PoC) to be considered. Payouts range from $1,000 for low-level issues to up to $200,000 for critical vulnerabilities in smart contracts. Payments are capped at 10% of economic damage but can exceed this for extreme cases. Payouts are in USD, generally made in $USDC for amounts under $100,000, and in $SUSHI tokens for larger sums.

Past Exploits

Security Incident Post-Mortem: RouteProcessor2 Vulnerability

On April 8, 2023, SushiSwap’s core contributors introduced V3 upgrades to the protocol, featuring a new router called RouteProcessor2 for facilitating swaps from the frontend. This router was designed to be utilized across various iterations of Sushi’s AMM pools, as well as for future aggregation across other protocols like Uniswap and PancakeSwap. The RouteProcessor2 contract was deployed across 14 networks, including Ethereum, Binance Smart Chain, Polygon, and more.

Later that day, the HYDN security team identified a critical vulnerability in the RouteProcessor2 contract that affected all user tokens approved on the contract. This issue was promptly communicated to Sushi’s core contributors. A response was quickly initiated, and a war room was formed with HYDN’s security team to address the situation.

Post mortem 

Cause of the Attack

The vulnerability in the RouteProcessor2 contract allowed unauthorized access to user tokens that had been approved on the contract. This enabled malicious actors to exploit the contract and gain control over the approved tokens.

How the incident was Handled
  1. Immediate Rollback: SushiSwap’s team swiftly rolled back upgrades to the UI containing the new router to halt any further token approvals on the vulnerable contract.
  2. War Room Formation: A dedicated war room was set up, involving HYDN’s security team and Sushi’s core contributors, to analyze the vulnerability, its implications, and potential solutions.
  3. Public Disclosure: Given the contract’s non-upgradeable nature and inability to revoke access, Sushi recognized the need for a public disclosure to inform users about the vulnerability.
  4. White Hat Rescue Efforts: Sushi’s team initiated efforts to identify affected wallets, including a high-balance address that posed significant risk. Communication was established with this user to un-approve the contract and mitigate potential losses.
  5. Bounty Program Involvement: A bounty hunter from ImmuneFi reported the same vulnerability through Sushi’s bounty program. Although initially dismissed due to scope, the report was later reopened when Sushi’s core contributors realized its significance.
Resolution and Outcomes
  • Prompt Communication: Sushi’s team engaged in effective communication with the high-balance wallet owner and informed them about the vulnerability.
  • White Hat Hack Attempt: Unfortunately, despite efforts, the high-balance user was not able to un-approve the contract in time. An ImmuneFi bounty hunter attempted a white hat hack to rescue assets, but this action was noticed by MEV (Miner Extractable Value) bots, which replayed the attack and drained a significant amount of funds from the user’s wallet.
  • Exploitation by Bad Actors: The attack on the user’s wallet quickly garnered attention from bad actors, who exploited the vulnerability further, draining additional funds from the user’s wallet.
Lessons Learned
  • Transparent Communication: Prompt and transparent communication is crucial in addressing vulnerabilities and coordinating efforts with the community, bounty hunters, and stakeholders.
  • Review Bounty Program Scope: Re-evaluate the scope of the bounty program to ensure that critical contracts are included to receive timely reports and prevent misunderstandings.
  • Quick Response: The ability to respond rapidly to vulnerabilities, vulnerabilities, and potential exploits is vital to minimizing damage and potential losses.
  • Upgradeability and Security: Consider the potential for contract upgradeability and security measures in the design of smart contracts to address vulnerabilities more effectively.

Team

While decentralized governance empowers $SUSHI token holders to shape significant changes, the day-to-day operations, pool rebalancing, business strategy, and overall development are managed by Sushi’s core team. 

Sushi has 19 total employees as of August 16th, 2023: 

Project Investors

SushiSwap has raised a total of $5.2M in funding over 1 round.  According to Crunchbase this seed round led by GoldenTree Asset Management raised on Oct 6, 2022. In that round SushiSwap was funded by 2 investors, Platinum Capital and GoldenTree Asset Management.

Additional Information

Partnerships

  • Gamma Strategies – A protocol for active liquidity management and market making strategies. 
  • Steer – Multi-chain compute protocol with next-gen automated liquidity management.
  • Transak – Enable users to buy or sell crypto from the protocol’s app.
  • Wagmi – A Javascript library for web3 frontends, which provides intuitive TypeScript interfaces for developers to interact with Ethereum.
  • Chainlink – Chainlink is the industry-standard Web3 services platform connecting the people, businesses, and data of today with the Web3 world of tomorrow.
  • Galxe – The leading platform for building Web3 communities.

FAQ

General FAQ

  • Where can I see how much my SLP tokens are worth?
  • Why can’t I see my SLP tokens on the website or in my digital wallet? 
    • If you’ve put your SLP tokens into a farm or another platform, they won’t be in your wallet anymore, so you can’t see them there. If you want to turn them back into the original tokens, you’ll need to take them out of the farm first. But you can still check their value here.
  • How can I add my own token and its picture to the trading platform? 
    • To add your token to SushiSwap, go to our Partner Portal site. You can find the link here. Pick the right network, enter your token’s address, and upload its logo and background color. Sushi team will look at your request and get back to you with what to do next.

BentoBox FAQ

  • What does “elastic interest rate” mean? 
    • The elastic interest rate is a special interest rate that changes depending on how much money is being borrowed compared to the total money available. If too little money is being borrowed, the interest rate goes down. If too much money is being borrowed, the interest rate goes up. The rate changes every 8 hours to make sure the right amount of money is being used.
  • Are there any extra costs for using Bentobox? 
    • Yes, if you earn interest or close out a bad loan, 10% of what you earn goes to SushiBar.
  • Why does my interest rate keep changing? 
    • Your interest rate changes because it’s trying to balance how much money is being borrowed and lent. If not enough money is being borrowed, the rate goes down to encourage people to borrow more. If too much is being borrowed, the rate goes up to slow down borrowing and encourage more lending.
  • Can I use special tokens like xSUSHI, XYZ, or LP tokens as collateral? 
    • Not right now, but in the future, you’ll be able to use these types of tokens as collateral in BentoBox.

Onsen FAQ

  • Why was Onsen created?
    • Onsen was created to add more money into SushiSwap, make trading smoother, offer more pool options, and collaborate with other finance projects online.
  • How do I find the list of pools in Onsen?
  • How are Onsen pools chosen and managed?
    • The Sushi core team picks which pools are part of Onsen. These pools are updated now and then based on how well the tokens in them are doing.

xSUSHI FAQ

  • How can I turn my $SUSHI into xSUSHI?
    • Go to this website: Sushi Staking, connect your digital wallet, choose how much you want to stake, and then confirm it on your wallet.
  • If I use my xSUSHI somewhere else, do I still get more $SUSHI?
    • Yes, you still earn extra $SUSHI. Check your earnings here: Sushi Staking.
  • What’s the current return rate if I stake my xSUSHI?
    • You can find the current rate at Sushi Analytics. But remember, this rate changes often based on how many people are trading and staking.
  • Why do I have fewer xSUSHI than $SUSHI?
    • The number of xSUSHI you get for your $SUSHI goes down over time because xSUSHI becomes more valuable than $SUSHI.
  • Can I vote if I put my SUSHI or xSUSHI in Bentobox?
    • No, you can’t vote with them if they’re in Bentobox.
  • Where does the extra $SUSHI come from when I stake?
    • You get extra $SUSHI from a small part (0.05%) of the fees people pay when they trade on the exchange.

Governance/Voting FAQ

  • Who makes decisions in SushiSwap, and who are these people?
    • There are two main groups that make important decisions in SushiSwap. The “Treasury” group includes 6 key people: @MatthewLilley, @0xGasper, @0xJiro, @LufyCZ, @sarangparikh22, @chillichelli. They decide how to use the funds for development. The “Operations” group also has 6 people, and they are the same as the Treasury group. In both groups, at least 3 out of 6 people have to agree to make a decision.
  • What does the Operations group do?
    • The Operations group takes care of pools, rewards, and technical details. They manage the software and make updates to it.
  • What does the Treasury group do?
    • The Treasury group focuses on how to use the development money. They are in charge of spending it in ways that will help SushiSwap grow and improve.
  • Can anyone submit a governance proposal?
    • Yes! Anyone in the community can propose a new idea. If a lot of people show interest, the core team will review it and possibly put it up for a vote.
  • How does voting work, and what’s SUSHIPOWAH?
    • You can vote for free, and your voting power is called SUSHIPOWAH. This depends on how much $SUSHI you own or have staked in the platform. To pass a proposal, at least 5 million SUSHIPOWAH is needed.

Sushinomics FAQ

  • What is $SUSHI’s hard cap?
    • The maximum number of $SUSHI tokens that will ever be created is 250 million. This cap will be reached in November 2023.
  • What are the current rewards for each block?
    • The current block reward information can be found on our emissions curve and supply totals below:
  • Where should I look for the most accurate yield rates?
    • The most trustworthy source for yield rates like APY or APR is the main SUSHI website, sushi.com. Note that the APY shown there doesn’t include the extra 0.25% fees you’d get from being a liquidity provider in a trading pool. We’re making efforts to show the same numbers across all platforms.
  • How much of the block reward goes to the developers?
    • 10% of the $SUSHI earned per block is allocated to the developer fund.
  • Where can I see how much money is in the developer fund?
  • What’s the breakdown of fees? 
    • Fees are divided as 0.25% going to Liquidity Providers and 0.05% going to xSUSHI holders. Until December 2023, the fees for xSUSHI are sent to the treasury based on the Kanpai 2.0 proposal.

Community Links