As decentralized finance (DeFi) continues to mature into a more inclusive financial system, more and more tools are being developed. If you’re looking to trade crypto using a decentralized exchange (DEX), you have several options on almost every blockchain – and it can be a bit overwhelming to find a place to start.
In this guide, we will explain how to get started with SushiSwap, which has been giving users access to every token within the Ethereum ecosystem since 2020.
SushiSwap is an Ethereum-blockchain DEX founded by pseudonymous open-source developers Chef Nomi and 0xMaki and initially launched as a copy of Uniswap.
As a clone of Uniswap, SushiSwap was a platform to swap tokens without the need for a middleman or intermediary. To make SushiSwap unique, the founders added new features including liquidity mining and governance through SushiSwap’s SUSHI token.
SUSHI, the native token of the SushiSwap ecosystem, gives users voting power to determine the future of the platform as well as a percentage of trading fees and staking rewards. Though holding SUSHI is not required to use SushiSwap, the token does offer some additional functionality – like staking – on the SushiSwap platform that you can’t access without it.
SushiSwap utilizes a decentralized trading method known as an automated market maker (AMM). Unlike traditional exchanges, which require an order book and intermediary for trading, SushiSwap’s AMM makes the entire process peer-to-peer.
AMMs, like the one used by SushiSwap, don’t need an intermediary or order book because trades are with liquidity pools – funds of a particular token, deposited by users, that utilize smart contracts to provide liquidity for trades.
Read more: Understanding the Technology Behind Decentralized Exchanges
Since the launch of SushiSwap in 2020, the project has continued to develop new DeFi tools and has created a platform no longer just for traders. The SushiSwap "menu" of the product has expanded to give users access to yield farming, staking and lending and borrowing, all within the same app.
To get started on SushiSwap, create an Ethereum-based wallet. There are several kinds on the market, and some of the more popular ones include:
Once you have your wallet set up, you’re ready to connect to the SushiSwap decentralized application (dapp). Though not required to get going, you could also get SUSHI tokens either using the DEX or centralized exchanges like Binance or Coinbase.
Since SushiSwap launched its DEX, it has grown into a fully decentralized platform, offering a variety of different features and tools for users to invest with. Beyond the SushiSwap DEX, SushiSwap offers several features through its BentoBox dapps including: