Sushiswap-Pandaren boy Chef Nomi's Kitchen
Sushiswap-A pandaren boy Chef Nomi’s kitchen, Decentralized exchange, automated Market Maker(AMM).
SUSHI is the native token of Sushiswap.
Before Sushiswap’s journey please check Uniswap on our Website please.
The origin of Sushiswap
SushiSwap Launched in August 2020 , it is a decentralized exchange and Automated Market Maker, it is a fork of Uniswap. SushiSwap was founded by the pseudonymous entity Chef Nomi. Little is known about his or her impetus for forking off from Uniswap. The name Chef Nomi comes from a game called ’Hearthstone‘， he is a pandaren boy with a terrible cooking skill. There are two other pseudonymous co-founders in the project, SushiSwap and 0xMaki. They handle SushiSwap’s code, product development and business operations.
The story starts with a ‘Vampire Attack’. Bringing in users who would provide liquidity by lending their crypto was the biggest problem SushiSwap faced at the beginning. People could already do everything sushiswap can do with Uniswap, so there would need to be some incentive to get them to use sushiswap. An incentive is provided by Chef Nomi through SushiSwap tokens. Users could receive the rewards by making deposits to SushiSwap. Because of the rewards, those who did it will earn more on Sushiswap. The Vampire Attack led to liquidity being drained from Uniswap and added to SushiSwap. After that, SushiSwap gained about $810 million in crypto funds. But the event made both exchanges end up attracting far more users.
Automated Market Maker(AMM)
Sushiswap is a fork of Uniswap, Uniswap is AMM which runs on Ethereum. The greatest contribution of uniswap is it provided the AMM. Sushiswap, as a fork of unisawp they has almost the same usage.
Market makers are essentially liquidity providers. In trading, liquidity refers to the speed and seamlessness of buying and selling an asset. Let us understand this with an example. If Trader A wants to buy one Bitcoin. The centralized exchange that oversees the trades provides an automated system to find sellers Trader B willing to sell Bitcoin at the price Trader A offers. Here, the exchange acts as a middleman.
AMM is the underlying protocol used by decentralized exchanges with autonomous trading mechanisms. These protocols are built using smart contracts to mathematically define the price of the crypto tokens and provide liquidity. This eliminates the need for centralized institutions. It allows users to trade their assets without any intermediary facilitating the transaction. In addition, in the AMM protocol, people do not need another trader to make a trade, but a smart contract. So trades are peer-to-contract and not peer-to-peer. If people want to trade a particular crypto asset with another, they need to find an individual liquidity pool. A mathematical formula will determine the price of an asset. In AMM, if they meet the requirements stipulated in the smart contract, anyone can be a liquidity provider. The liquidity providers can earn fees from trades in their pool. Unlike centralized exchanges, AMM does not even need an account to do the exchange, but a crypto wallet.
Chef Nomi committed a scam called rug pull. September 5, 2020, he took more than 2.5 million SushiSwap tokens and 20,000 Ethereum, worth about $14 m. Many people who are in the SushiSwap community were upset, but as a governance token, SushiSwap gives holders voting rights on the future of the exchange. So Sam Bankman-Fried, CEO of crypto exchange FTX and an early SushiSwap investor, offered to take over the project and donate 5 million SushiSwap tokens. A new team was put together to run the project, after that Chef Nomi also apologized to the community and returned all the crypto he took.
The price of SUSHI
SUSHI initially had no upper limit on its coin supply. Eventually, the community voted in favor of a hard cap of 250 million SUSHI. As the tokens continue to be rewarded, expected in November 2023, the amount of SUSHI given to staking participants will eventually decrease to 0. The price of SUSHI starts at $2.59. After that in early November 2020, SUSHI hit an all-time low of $0.4737 in the aftermath of a liquidation of $14 million in SUSHI and disappearance of the project’s lead developer, Chef Nomi. Following China’s crypto ban and a high period in the general crypto market,SUSHI hit an all-time high of $23.38 in March 2021. After that, SUSHI has fallen with the cryptocurrency market without exception, the price of back to about $1.
Hope you have a nice trading day!
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