SushiSwap is an evolved version of Uniswap with SUSHI token that functions as a protocol token and benefits holders and liquidity providers in various ways.
As a Uniswap competitor, SushiSwap exchange could be seen similar to 1inch‘s Mooniswap which also uses Uniswap’s UI, but tries to bring more value to liquidity providers with its different approach to exchange rates.
Well, how is SushiSwap different than Uniswap? How do SushiSwap and SUSHI token work? How to stake SUSHI?
What is the difference between Uniswap and SushiSwap? Uniswap vs SushiSwap
The main difference between Uniswap and SushiSwap is that when you provide liquidity to SushiSwap pools, you receive LP tokens and can earn rewards in SUSHI tokens by staking LP tokens which is kind of similar to Uniswap’s fee distribution, but when you remove your liquidity from SushiSwap pools, you can still receive the protocol fee by staking your SUSHI tokens.
While all of the 0.3% trading fee goes to liquidity providers on Uniswap, on Sushiswap, liquidity providers receive 0.25% fee and SUSHI holders who stake their SUSHI tokens receive the remaining 0.05%.
If you have SUSHI tokens, you can mint xSUSHI tokens by staking SUSHI tokens on SushiSwap and start earning swap fees.
How to use SushiSwap?
If you have used Uniswap to swap tokens or provide liquidity to crypto pairs before, then you will have no difficulty using SushiSwap because it is very similar to Uniswap. To start using SushiSwap, first visit SushiSwap and connect your wallet to the dapp by clicking on the ”Unlock Wallet”.
You can use MetaMask or mobile wallets such as Trust Wallet via WalletConnect to access SushiSwap.
Adding liquidity to SushiSwap pools
You can provide liquidity to SushiSwap liquidity pools the same way you do on Uniswap. If you haven’t provided liquidity to Uniswap pools before, you can refer to this guide to learn how to add liquidity to SushiSwap pools.
To add liquidity to SushiSwap pools, first click on ”exchange” on SushiSwap’s homepage and then click on ”pool”.
After you provide liquidity to any of SushiSwap pools, you will receive SushiSwap V2 LP tokens that you can stake and earn rewards in SUSHI tokens.
How to stake SushiSwap LP tokens?
To stake your LP tokens, click on ”menu” and select your ”favorite dishes”. You can also check out the APY rates on the menu before providing liquidity to any pair to see which one is more profitable. For example, SUSHI-ETH SLP token currently yields twice more SUSHI rewards per block.
How to stake SUSHI?
You can stake your SUSHI tokens earned by either providing liquidity to SushiSwap pools and staking LP tokens or bought in exchanges to receive a portion of swap fees.
Unlike Uniswap, SushiSwap does not distribute all of the 0.3% swap fee to liquidity providers, instead 0.05% is left for SUSHI holders while the rest goes to liquidity providers.
Therefore, if you have some SUSHI in your wallet, you can stake them on SushiSwap and mint xSUSHI tokens which will accrue swap fees. You can convert your xSUSHI tokens back to SUSHI on the same page to receive the swap fees accumulated.
How to buy SUSHI token?
SUSHI token is traded on various cryptocurrency exchanges. You can buy SUSHI on decentralized exchanges such as Uniswap, 1inch, Mooniswap, Balancer and SushiSwap.
There are also various major centralized exchanges such as Binance and Poloniex that you can use to buy SUSHI token. You can check out the articles below to open an account on these exchanges and/or decrease trading fees:
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