Sushiswap vs Uniswap: Which Defi Exchange is better?

Sushiswap vs Uniswap were created as exchanges that allow users independence while keeping low exchange fees and profiting liquidity suppliers.

The charge was utilized by Uniswap to disperse among liquidity providers, whereas Sushiswap used a somewhat different approach, with the cost also being used to create SUSHI tokens.

These tokens served as a supplement to the standard Ether-based fee for liquidity providers, attracting a large number of investors to Sushiswap through a process known as SUSHI mining.

Uniswap is now the most popular decentralized exchange office on the market, ranking #1 as a Decentralized Finance (Defi) project in the globe.

After securing $100,000 in financing from the Ethereum Foundation, Uniswap was launched in 2018. The Uniswap Token is the platform’s native digital asset (UNI). More information about Uniswap and its features may be found here.

SushiSwap, a derivative of Uniswap launched in 2020, proved to be the most formidable competitor to Uniswap. While it will be difficult for anyone to dethrone Uniswap as the “best-decentralized exchange,” SushiSwap has demonstrated in a short period of time that it can compete with Uniswap.

What is Uniswap

Uniswap decentralized exchange (DEX) popularized the automated market maker (AMM) technology in 2017. Smart contracts create liquidity pools of ERC-20 tokens that are automatically exchanged according to a defined algorithm under this approach.

Anyone can utilize the pools as a DEX to exchange cryptocurrency for a minimal charge. Users can also act as liquidity providers by depositing bitcoin into liquidity pools and earning swap fees as a reward.

In mid-September 2020, Uniswap introduced UNI, its governance token. At the start of the platform, 1 billion UNI were created, which would gradually enter circulation over the next four years.

The UNI coins were distributed to the community via an airdrop and liquidity mining at the original launch. With a circulating quantity of 520 million tokens and a market cap of $9.4 billion, UNI is now trading at $18 per token.

SushiSwap

SushiSwap is a fork of Uniswap, launched in late August 2020 ” SushiSwap, like Uniswap, is an AMM-based DEX. SushiSwap’s developers made a few adjustments to the source code, but the basic product remains unchanged.

SUSHI is SushiSwap’s native token. SUSHI tokens are used to manage the platform and are offered as incentives to liquidity providers. SushiSwap now mints a certain number of SUSHI tokens per block, which are split evenly across all pools.

The number of SUSHI tokens created per block declines over time, eventually reaching zero when the total supply of SUSHI tokens reaches 250 million.

With a circulating quantity of 192 million tokens and a market cap of $1.3 billion, SUSHI is now trading at $7 per token.

Similarities Between Uniswap and SushiSwap

Given that SushiSwap is a derivative of Uniswap, there are numerous similarities between the two programs. The Ethereum blockchain is what binds them together.

The key feature of both is the ability to exchange currencies by tapping into liquidity pools that are filled by other Defi users.

To provide liquidity for swaps, both Uniswap and SushiSwap leverage smart contracts on the Ethereum network. Uniswap token (UNI) and SushiSwap token (SUSHI) are both Ethereum-based ERC-20 digital assets.

Differences Between Uniswap and SushiSwap

The following are the distinctions between Uniswap and SushiSwap:

With a total market capitalization of $14 billion and a token price of $24.50, Uniswap is rated number ten on Coinmarketcap. SushiSwap is ranked 63 on Coinmarketcap, with a $14 billion total market capitalization and an $11.30 token price.

Uniswap currently has $5.5 billion in cash on hand, whereas SushiSwap has $3.3 billion. Uniswap provides 39000 Token Pairs to its users, while SushiSwap provides 1200 Token Pairs.

The biggest significant distinction between the two is that SushiSwap has more features. While the charge for the end-user is identical (0.3 per cent), the schedule of rewards for liquidity providers differs.

While Uniswap liquidity providers are paid 0.3 per cent of pool costs, SushiSwap liquidity providers are paid 0.25 per cent of pool fees, and SUSHI token holders are paid 0.05 per cent of pool fees. SushiSwap is also unique in that it allows SUSHI yield farming, with payouts as high as 80% APY in some pools.

Uniswap vs SushiSwap

Does the name Uniswap & SushiSwap ring a bell? Because the two protocols are based on the same code, this is the case. SushiSwap is essentially a fork of the Uniswap exchange with a few tweaks to the code.

Both protocols include transaction costs of 0.3 per cent, which is standard for a crypto exchange. Coinbase Pro has a 0.5 per cent transaction cost, while Binance just has a 0.1 per cent transaction fee. When comparing Uniswap with SushiSwap, you must consider how transaction costs are divided.

Transaction fees are dispersed to liquidity providers on Uniswap. Liquidity providers receive 0.25 per cent of the SushiSwap exchange, while Sushi coin holders receive 0.05 per cent.

Sushi coin, often known as the Sushi token, is the SushiSwap exchange’s governance token.

How to HODL Your Uniswap and SushiSwap Tokens

Uniswap and SushiSwap tokens can be good long-term investments for crypto investors. The only concern is how can you HODL these assets for years to come in a safe manner.

The most convenient way to store the Uniswap and SushiSwap tokens are in a bekonta crypto wallet or any other wallet that you deem appropriate.

UNI and SUSHI, as well as over a hundred other cryptocurrencies, are supported by Bekonta. Bekonta is unique in that it may be used on both a computer and a mobile phone. If you store Sushi coins or Uniswap tokens in your PC wallet, you can use them on your mobile wallet as well.

It’s a good idea to invest in both tokens because it’s still uncertain which exchange will win in the long run. Uniswap and SushiSwap provide identical services and have approximately equal amounts of liquidity locked up, so it’s difficult to say which has the upper hand.

It’s pretty great to get into this market so early and participate while smart engineers continue to build out a fresh new financial system, regardless of which decentralized exchange wins.

Sushiswap vs Uniswap,Which Defi Exchange is better

In the end, whether you choose SushiSwap vs Uniswap depends entirely on how you want to earn incentives from your exchange.

Uniswap pays larger fees to liquidity providers (0.3 per cent vs. 0.25 per cent for SushiSwap), but SushiSwap also pays SUSHI holders an extra 0.05 per cent. As a result, the latter incentivizes SUSHI holding, and the former compensates LPs.

Using the Uniswap app, however, the exchange process is much smoother, cleaner, and straightforward. SushiSwap’s Japanese izakaya experience is unique, but it clogs up the exchange’s interface in the long run.

Uniswap wins the battle between Sushi and Uni for traders, liquidity providers, and crypto enthusiasts.

Conclusion

Sushiswap or Uniswap is two platforms that are extremely comparable. Both are AMM-based DEXs with liquidity pools for token swapping (for a fee). The swap fee is an incentive for liquidity providers who supply liquidity to the pools on both platforms.

While the two platforms appeared to be identical at first, they both introduced features that were unique to them. Fee tiers, liquidity mining, the focused liquidity feature, loan and margin trading, and a reward scheme for newer token projects are some of the primary distinctions between Uniswap vs SushiSwap.

In terms of total value locked, trading volume, and revenue earned, Uniswap is now the most popular DEX platform.