Sushiswap, a Uniswap fork, TVL crosses $800M

Sushiswap protocol's Total Value Locked has reached $824M with the SUSHI token is trading for $3.56 from $2.37 barely two days back

By · Sep 1, 2020 . 6min read

Sushiswap Defi news

Sushiswap, a mirror and fork of the Uniswap DEX within just three days of launch attracts up to $800 million as TVL in its contracts.

The latest DeFi project seeks to change the game by issuing the SUSHI governance token to liquidity providers – LPs, unlike Uniswap. However, it rolled out with an unaudited contract.

Unlike Uniswap, where LPs only earn the pool’s trading fees when they are actively providing said liquidity, Sushiswap’s LPs earn rewards in the form of SUSHI tokens for providing liquidity.

Furthermore, Sushiswap claims to be best Uniswap in area of fees incentives distribution. Uniswap currently distributes 0.30% of all trading fees as rewards to liquidity providers in any pool. Sushiswap will be distributing 0.25% of trading fees but using the rest 0.05% to buy back SUSHI tokens from its platform to distribute among LPs.

As at the time of reporting, Sushiswap protocol’s Total Value Locked has reached $824M. Consequently, SUSHI token was trading for $3.56 from $2.37 barely two days back.

Source: Zippo

Sushiswap’s liquidity fork of Uniswap has led to an outrage among DeFi experts

Sushiwap’s apparent success already doesn’t seem to be going down well among DeFi experts. For instance, Will Warren, co-founder of 0x Project said:

“terrible” if SushiSwap won. “It’s in the Ethereum community’s best interest to reward builders. That said, forking liquidity would only result in worse swap prices for people that go direct to single source rather than an aggregator,”

Warren made this statement as a response to Brendan Forster of Dharma Labs when he tweeted:

“I usually don’t opine about specific projects, but if I’m being honest, I hope this SushiSwap experiment fails. Forking liquidity will make swap prices worse for all users and make impermanent loss worse for all LPs. The only beneficiaries are the Sushi founders”

More surprising is the fact that the Sushiswap project has a faceless team backing it. The only thing most know about the backers is that one Chef Noni openly called for big smart security firms like Quantstamp, Consensys, Zeppelin etc., to come audit its code.

Sushiswap backer, a fork of Uniswap

This kind of development within DeFi’s industry is what necessitates many to write the whole industry off as a bubble. In fact, it easily brings to mind the YAM experiment which also rolled out with an unaudited smart contract only to fail days later when a fatal bug was discovered making it impossible to achieve a quorum during governance.

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