More than $700 million in cryptocurrencies were frozen in the SushiSwap protocol within the first three days. Sushiswap is a fork of the decentralized trading platform Uniswap. Users were not even embarrassed by the fact that the software was practically not subject to technical audit.
The amount of blocked funds in the SushiSwap protocol, a fork of the Uniswap decentralized exchange, reached $700 million in the first three days. The main difference between SushiSwap and Uniswap is the SUSHI governance token. Uniswap does not have its own governance token and offers its liquidity providers a share of trading fees. Specifically, Uniswap distributes 0.3% of all trading fees as a reward to liquidity providers in any pool. SushiSwap will distribute 0.25% of trading commissions to liquidity providers, while converting another 0.05% into SUSHI tokens and paying them to liquidity providers as a reward when the main protocol network goes live. This will happen in about two weeks. The more liquidity the provider gives, the more SUSHI tokens he will receive. Then the tokens can be sold or used to vote on project management. Currently, SUSHI tokens are traded at $3.62.
The explosive growth of SushiSwap is reminiscent of the viral DeFi project YAM, which quickly became popular and died in a matter of days due to a critical bug found in smart contracts.
SushiSwap's smart contracts have not undergone a technical audit either. SushiSwap was created by a team of anonymous developers under the pseudonym Chef Nomi. They promise that SushiSwap smart contracts will be audited by Quanstamp in the future.
Brendan Forster, co-founder of Dharma Labs lending protocol, hopes the SushiSwap experiment will fail. “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,” Forster tweeted. According to SushiSwap, the development team will receive 10% of all SUSHI releases.