What is SushiSwap and what is it used for?

SushiSwap is a decentralized exchange (DEX) where people swap tokens from their own wallets and earn fees by supplying liquidity. It started in August 2020 as a fork, or copy, of Uniswap, so the basic way it prices trades works the same way. What made SushiSwap different at launch was its token, SUSHI, and the aggressive way it used that token to attract users.

What is SushiSwap crypto's origin story?

A pseudonymous developer known as Chef Nomi launched SushiSwap on August 28, 2020, by forking Uniswap's code. SushiSwap offered SUSHI rewards to anyone who deposited Uniswap liquidity provider (LP) tokens into SushiSwap.

This became known as a vampire attack. Users first put assets into Uniswap pools, then handed their Uniswap LP tokens to SushiSwap to earn SUSHI. On September 9, 2020, SushiSwap used those LP tokens to withdraw the underlying assets from Uniswap and move them into its own pools. Gemini reports it took about $810 million, roughly 55% of Uniswap's liquidity at the time. Uniswap's deposits recovered within a few months.

The launch was also turbulent. Chef Nomi sold his developer share of SUSHI, worth about $14 million according to The Defiant, then handed control of the project to FTX's then chief executive, Sam Bankman-Fried.

What is SushiSwap used for?

SushiSwap works like other DEXs. Users swap one token for another against a liquidity pool instead of an order book. Anyone can deposit a pair of tokens into a pool and earn a share of trading fees. In its classic pools, The Defiant describes a 0.25% fee going to LPs, with a smaller slice going to SUSHI stakers. Liquidity providers face risks such as impermanent loss.

Over time Sushi added more products, including a lending market called Kashi, a vault called BentoBox and SushiXSwap for cross-chain swaps.

What chain is SushiSwap on?

SushiSwap started on Ethereum but expanded to many networks, including Arbitrum, Polygon, Avalanche, BNB Chain, Gnosis and Fantom. In May 2023 it launched version 3 pools, which use concentrated liquidity, on 13 chains at once and said it planned to reach more than 30. As of October 2026, check Sushi's own app for the current list, because supported networks change.

What is the SushiSwap token?

SUSHI is the project's governance and utility token. It was first paid to liquidity providers as a reward. Holders could also stake SUSHI in a contract called the SushiBar to receive a share of swap fees and take part in governance votes. That makes SUSHI a governance token, meaning holders can vote on how the protocol is run, separate from any role it plays in trading.