Sushi is the governance token of the SushiSwap decentralized exchange.
- What is SUSHI?
SUSHI is an ERC-20 token issued to liquidity providers on the SushiSwap decentralized exchange. It is earned by providing liquidity to pools on SushiSwap and be staked in exchange for SLP tokens which are used to govern the protocol.
- What is SushiSwap?
SushiSwap is a software (Decentralized Exchange) running on Ethereum that seeks to incentivize a network of users to operate a platform where users can buy and sell crypto assets.
SushiSwap is a fork of Uniswap with some key differences – most notably, the SUSHI token. The token has two functions at launch: entitling holders to governance rights and a portion of the fees paid to the protocol. In a simplified way, SUSHI holders “own” the protocol.
SUSHI is distributed to those who provide liquidity to specific Uniswap pools. Then, they can deposit their Uniswap LP tokens into the SushiSwap staking contracts to start earning SUSHI.
SUSHI can also be asymmetrically staked in the SushiBar.
- How did SushiSwap Launch?
SushiSwap is designed as the next step forward in the Uniswap protocol design: an evolution. Taking Uniswap’s elegant core design, they’ve added community-oriented features that are believed to help improve the design of the protocol, as well as provide further benefits to the actors involved.
With virtually identical software and financial model plus the addition of tradable governance token rewards, SushiSwap depended on liquidity providers on Uniswap to move their liquidity pools off Uniswap and onto SushiSwap. As the platform’s September 9 blog post said, “To start providing liquidity and earning SUSHI tokens, anyone holding Uniswap LP tokens can stake those LP tokens into the corresponding initial list of pools.”
Upon launch, $830 million of assets were moved from Uniswap onto SushiSwap. Early transfers in “The Liquidity Migration” were incentivized with a SUSHI pay out ten times larger than normal. The amount staked to SushiSwap quickly rose to $1.68 billion of Uniswap tokens.
Shortly after SushiSwap launched, the pseudonymous founder of the protocol, Chef Nomi, withdrew about $14 million worth of Ether from the development fund. Despite being fully legal within the design of the protocol, this transfer engendered an enormous outcry from the community. Sam Blankman-Fried, CEO of FTX and investment firm Alameda Research took on the role of spokesman for the aggrieved SushiSwap participants. A few days later, Chef Nomi tweeted that they had returned the Ether to the development fund.
- Who are the team members behind Sushi?
The pseudonymous founder of the protocol is Chef Nomi.
The Multisigs are the ultimate decision-makers in the SushiSwap ecosystem.
The Treasury Multisig wallet is comprised of 9 prominent and trusted members of the DeFi/Ethereum ecosystem, and they must approve any use of the devfunds. A transaction requires at least 6 out of 9 signatures to pass and be executed.
Signers of Treasury Multisig:
@SBF_Alameda, @rleshner, @0xMaki, @lawmaster, @cmsholdings, @mattysino, @mickhagen, @JiroOno, @zippoxer
The Ops Multisig is primarily comprised of core team members and is the hurdle that needs to be passed for any changes to our smart contracts. Any transaction to be executed requires at least 3 signatures out of 5.
Signers of the Ops Multisig (Twitter handles):
@0xMaki, @LevxApp, @OmakaseBar, @JiroOno