Log in

Simply Explained

Simply Explained: Sushiswap (SUSHI)

Updated: Jul 25, 2024
Published: Mar 15, 2022
0
Share:

SushiSwap is a decentralised exchange (DEX) that launched in August 2020 (also known as DeFi Summer, thanks to the large boom in popularity and growth of DeFi).

Post Feature Image

A DEX enables people to exchange cryptocurrencies without the need for a third party. Users prefer to use platform’s like Sushi instead of a centralised exchange (like Binance or Coinbase) because of the combination of complete control over their tokens, anonymity, and the ability to purchase and exchange tokens that aren’t available on centralised exchanges.

size-large wp-image-205232 aligncenter

When you hold your money on a centralised exchange, it’s like holding your money in a bank. It’s probably safer than keeping the money yourself (tucked under a mattress, or in a biscuit tin etc), but you are at the whim of the custodian. They are holding your coins, and in some cases, they may have the right to hold onto them. Holding your assets in your own wallets and using DEXs is like holding the tokens yourselves and using cash. If your money is stolen you’re on your own, but at least no one is in possession of it, and it is at your disposal.

SUSHI acts as a DEX by operating as an automatic market maker (AMM). Simply put, an AMM is a method of facilitating trading without the need for a middleman, or broker, to carry out the trade.

Exchanging currencies can get quite complicated. It’s not just a coin vs its dollar amount. When swapping an asset for another asset there are countless combinations. Think BTC/ETH, BTC/SOL, etc. Centralised exchanges (CEXs) facilitate these exchanges by matching a buy order with a sell order. This is called an orderbook - traders trade with each other, and CEXs provide the means. 

size-large wp-image-205234 aligncenter

But how is this done on a DEX?  Without a centralised market maker routing orders, a DEX has to find another way to allow users to trade their assets. It’s not efficient to have everyone on standby to wait until two people happen to want to make a trade that compliments the other, orders could take weeks to fill. What’s the solution?

Our Top Picks:

DOGWIFHAT

DOGWIFHAT

120,650%

SPX6900

SPX6900

17,000%

POPCAT

POPCAT

66,567%

PENDLE

PENDLE

5,002%

SOLANA

SOLANA

2,500%

HYPE

HYPE

1,740%

Don’t miss our next 100X

Trusted by 230K+ investors

Liquidity pools

On DEXs, you have two types of people, those looking to exchange tokens and those looking to earn some money. The people who want to earn money provide liquidity. They put their tokens up as liquidity and in turn, they earn rewards  based on the trading fees paid by traders using that pool. Traders use the liquidity in the pool to 'swap' like for like (in USD value), for example, 1000 SUSHI for 1 ETH. size-large wp-image-205230 aligncenter

To note, SUSHI takes 0.3% in fees for transactions that take place in its liquidity pools. The quantity of SUSHI rewarded to liquidity providers is variable and dependent on the asset combination they are providing liquidity for. The more volatile the pair, the higher interest they will earn.

To properly understand liquidity pools, check out our article here!

Disclaimer: THIS IS NOT FINANCIAL OR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make, and only you are accountable for the results.

100% Success Money Back Guarantee

If our approach doesn’t outperform the overall crypto market during your subscription, we’ll give you a full refund of your membership. No questions asked. For quarterly and monthly subscribers this is applicable once your subscription runs for 6 consecutive months.

Terms & Conditions apply

Star

Trusted by 300,000+ traders

Take your next step towards crypto success

Save 50%

$799/year

Get everything you need to actively manage your portfolio and stay ahead. Ideal for investors seeking regular guidance and access to tools that help make informed decisions.

VisaCardImageMsCardImageCoinbaseCardImageSolanaCardImage

For your security, all orders are processed on a secured server.

What’s included in Pro:

  • Success Guarantee, if we don’t outperform the market, you get 100% back, no questions asked

  • 24/7 access to experts with 50+ years’ experience

  • All of our top token picks for 2025

  • Our latest memecoins pick with 50X potential

  • On hand technical analysis on any token of your choice

  • Weekly livestreams & ask us anything with the team

  • Daily insights on Macro, Mechanics, and On-chain

  • Curated list of top upcoming airdrops (free money)

Our track record speaks for itself

With over 2.4M tokens and widespread misinformation in crypto, we cut
through the noise and consistently find winning assets.

/images/advertorial/corpcomm3.webp
/images/advertorial/corpcomm4.webp
/images/advertorial/corpcomm5.webp

Frequently Asked Questions

Yes. We've consistently identified winners across multiple cycles. Bitcoin under $1,000, Ethereum under $70, Solana under $10, WIF from $0.003 to $5, PopCat from $0.004 to $2, SPX blasting past $1.70, and our latest pick has already 200X'd since June 2025. Everything is timestamped and public record.

No. When we founded Cryptonary in 2017 the market was new to everyone. We intentionally created content that was easy to understand and actionable. That foundational principle is the crux of Cryptonary. Taking complex ideas and opportunities and presenting them in a way a 10 year old could understand.

Signal vs noise. We filter out 99.9% of garbage projects, provide data backed analysis, and have a proven track record of finding winners. Not to mention since Cryptonary's inception in 2017 we have never taken investment, sponsorship or partnership. Compare this to pretty much everyone else, no track record, and a long list of partnerships that cloud judgements.

We share highly sensitive, time-critical research. Once it's out, it can't be "returned." That's why membership is annual only. Crypto success takes time and commitment. If someone is not willing to invest 12 months into their future, there is no place for them at Cryptonary.

Yes. You will have 24/7 to the team that bought you BTC at $1,000, ETH at $70, and SOL at $10. Through our community chats, live Q&As, and member only channels, you can ask questions and interact directly with the team. Our team has over 50 years of combined experience which you can tap into every single day.

Daily. We provide real-time updates, weekly reports, emergency alerts, and live Q&As when the markets move fast. In crypto, the market moves fast, in Cryptonary, we move faster.

If our approach to the market doesn’t beat the overall crypto market during your subscription, we’ll give you a full refund of your membership fee. No questions asked. For quarterly and monthly subscribers this is applicable once your subscription runs for 6 consecutive months.

Recommended from Cryptonary
This Week's Setup: 27th of October
Market Updates
This Week's Setup: 27th of OctoberIt’s a big week in markets, and you don’t want to miss what’s coming. The Fed meets, Trump and Xi ar...
7 min read
Oct 27, 2025
Time Sensitive: The 4x Market-Neutral Trade Everyone’s Missing
PRO
Research Report
Time Sensitive: The 4x Market-Neutr...Opportunities like this are rare in crypto. Most launches are driven by hype or speculation with no ...
11 min read
Oct 27, 2025
BTC, ETH and More: Breakouts Loom on Pennants, Key Levels Ahead
PRO
Market Direction
BTC, ETH and More: Breakouts Loom o...The market is coiling in pennants after the inflation beat. All eyes on major resistance and breakdo...
6 min read
Oct 24, 2025