SushiSwap Takes On Uniswap as DeFi’s Highest-Flying Unicorn

CRYPTONAIRE WEEKLY

CRYPTO investment journal

SushiSwap Takes On Uniswap as DeFi’s Highest-Flying Unicorn

A liquidity war is brewing between Uniswap and a fork of DeFi’s darling DEX, called SushiSwap.

Don’t let the flippant name and emoji throw you off: Sushi means business. In less than a week, SushiSwap has aggregated more than $800M worth of tokens, or about 80% of total Uniswap assets, according to Sushiboard, which tracks the project’s data.

This isn’t just another liquidity-pool based DEX that’s popped up to compete with Uniswap: SushiSwap is coming to directly take Uniswap’s liquidity.

SUSHI Tokenomics

In the first phase of the project, traders stake tokens representing deposits in Uniswap’s liquidity pools (Uniswap’s LP tokens), in exchange for SUSHI tokens. In the second phase, traders are meant to migrate those Uniswap LP tokens for the underlying assets and take them to the SushiSwap DEX.

Positioning themselves as “an evolution of Uniswap with SUSHI tokenomics” SushiSwap uses a Yam-inspired interface to present traders with a “menu” of Uniswap liquidity positions they can lock up in exchange for the SUSHI governance token.

APYs on these pools currently range from about 500% to over 2,000% for the highest yielding option, the UMA-ETH pool (Umami Squid on the menu). More on the vision here.

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CRYPTONAIRE WEEKLY

CRYPTO investment journal