SushiSwap is an Automated Market Maker (AMM). AMMs are decentralized exchanges which use smart contracts to create markets for any given pair of tokens.
SushiSwap launched in September 2020 as a fork of Uniswap, the AMM which has become synonymous with the DeFi movement. SushiSwap aims to diversify the AMM market and also add additional features not previously present on Uniswap, such as increased rewards for network participants via its in-house token, SUSHI. This has led to an increase in SUSHI price.
SushiSwap was founded by the pseudonymous entity known only as Chef Nomi. Little is known about Chef Nomi, or his or her impetus for forking off from Uniswap. The project has two other pseudonymous co-founders, sushiswap and 0xMaki, also known as just Maki. Between them, they handle SushiSwap’s code, product development and business operations. More recently, de facto ownership of SushiSwap was passed to Sam Bankman-Fried, CEO of derivatives exchange FTX.
SushiSwap primarily exists as an AMM, through which automated trading liquidity is set up between any two cryptocurrency assets. Its main audience is DeFi traders and associated entities looking to capitalize on the boom in project tokens and create liquidity. AMMs do away with order books entirely while avoiding problems such as liquidity issues, which hamper traditional decentralized exchanges. SushiSwap aims to improve on the offerings of its parent, Uniswap, by increasing the impact users can have on its operations and future. The platform takes a 0.3% cut from transactions occurring in its liquidity pools. Its SUSHI token is used to reward users portions of those fees. SUSHI also entitles users to governance rights.
Sushi was announced in September of 2020 by an anonymous developer going by the name of, Chef Nomi. Upon its release, Sushi, also known as SushiSwap, attracted a lot of industry attention for labelling itself a community-driven AMM. It was an exciting platform idea that spoke to the ethos of true decentralization.
Chef Nomi’s Exit
Upon gaining quite a lot of traction in the DeFi community, Chef Nomi felt his work was done. He made his exit by removing $14 million in SUSHI tokens from the Sushi development fund. This is the amount he personally felt he deserved for developing the platform. Many people felt this was in direct contrast to his community-driven platform vision, so he gave the funds back and asked the community to decide the amount he deserved.
When this event took place, many industry members believed it had damaged Sushi’s reputation. However, an early Sushi believer, 0xMaki, stepped up to fill the empty role of Sushi lead and built the platform to incredible heights, even overtaking Uniswap in total platform liquidity on more than one occasion. Due to this unbelievable comeback, many people admire the Sushi community and team for growing the platform back and beyond the platform it was in its early days.
Let us review SUSHI Price
SUSHI Price Prediction
SUSHI is currently trading just above the support zone of $7.10. If it can stay above this support, we could start seeing a move towards $8.18, $8.44, $9.26, $10.60, $12.77, $14.93 and $16.27. Failure to hold the support at $7.10 could lead to a drop towards $6.33 and $5.67.
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