SushiSwap was founded in 2020 by pseudonymous creators Chef Nomi, 0xMaki, and Sushiswap. The DEX was initially based on the open-source code of Uniswap, another DEX. SushiSwap's DEX uses automated market maker (AMM) technology, which allows for digital trading assets through pools of liquidity provided by participants known as liquidity providers.
Upon its launch, SushiSwap conducted a practice known as vampire mining, in which it attracted liquidity providers by offering rewards for staking their Uniswap liquidity provider tokens on SushiSwap. However, the project's founder, Chef Nomi, temporarily absconded with approximately $14 million worth of Ether (ETH), although the funds were returned shortly after that. The project was passed on to Sam Bankman-Fried, CEO of exchange FTX, before being handed over to the community.
SushiSwap Products and Ecosystem
In addition to the SushiSwap DEX, the SushiSwap brand also includes other DeFi products, such as Kashi, a platform for lending, borrowing, and other activities. Built on the Ethereum blockchain, the SushiSwap DEX utilizes smart contract-based pools of assets for trading. As a result, prices on the DEX vary by asset.
The SUSHI token serves as a governance token for the SushiSwap ecosystem. Holders of the SUSHI token can suggest changes to the ecosystem or vote on changes proposed by others. The token is also used to reward participants of certain SushiSwap ecosystem activities, such as staking.