Why isn’t sushi like UNI (why is sushi raw)?

Why isn’t sushi like UNI? Original {Title}: “Why isn’t sushi like UNI?”

Original Author: Amy Liu

Original Translation: 0x137, Rhythmic BlockBeats

In the past month, SushiSwap has been developing in an exciting way. Its token, SUSHI, has migrated from UniswapV3 to SushiSwap. But all of this happened after the liquidity mining activity on Uniswapv1 surged.

SushiSwap is a decentralized exchange (DEX) aimed at promoting the growth and adoption of DeFi applications on Ethereum. It is the first functionally decentralized stable asset trading platform that offers interoperability and complete automation. It allows users to deposit, borrow, exchange, or stake cryptocurrencies in their own wallets and convert them into other Ethereum-based digital assets like USDC-ETH to earn profits. It achieves this by utilizing automated market maker protocols like Uniswapv2 (such as Curve) without requiring collateral or governance voting.

However, SushiSwap has not successfully attracted newcomers as they are now trying to create a new decentralized financial ecosystem. Like Uniswap, SUSHI is a product fully supported by liquidity. But when Sushi was launched, it became more decentralized and beyond their control, allowing people to utilize these tokens for various investments.

While many investors are interested in Uniswap and want to fund the SushiSwap project, in many cases, SushiSwap does not operate like platforms such as Uniswap. In fact, within 12 hours of Uniswap’s launch, Sushi started expanding rapidly and attracted hundreds of thousands of addresses participating in SushiSwap transactions within 7 days. Since one of the early members of the project is from the United States, many consider SushiSwap a failed investment strategy. Nevertheless, Sushi has successfully expanded its ability to lock assets with a total value (TVL) exceeding $1 billion. Moreover, with the support of SushiSwap founder Andre Cronje, he plans to reach a liquidity pool of $3 billion. Another important innovation of SushiSwap is allowing users to borrow and withdraw liquidity and trading volume directly from Uniswap. If someone sells LP positions on Uniswap and transfers funds from that smart contract, they will receive rewards instead of being required to pay additional fees.

According to him, “The SushiSwap team is developing a new automated market maker model”, including liquidity concentration settings, impermanent loss insurance, and “liquidity provisioning” mode.

With Uniswap launching its protocol,

Why is sushi raw

Editor’s note: This article is from Odaily Star Daily and is authorized to be reproduced.

How does the Sushi project work?

Many people may ask, why are sushi and Azuki so different in the “food chain”? I think this is because they have strong vitality; that is, they continuously increase their value without changing the native token distribution mechanism. But here’s the question: are these tokens raw?

First, let’s take a look at this chart:

From the top right corner, everyone wants to eat a sushi and get a special reward (sushi). When users start buying, it becomes a new SUSHI; then look at the QR code in the upper left corner, which shows various things like SUSHI/ETH, YFI/LINK…

Of course, if people really want to eat sushi and then sell some to unlock the SUSHI in their liquidity pool, then you can go mining. However, it is important to note that all circulating SUSHI on the market is unaudited. But if you look closely at the story behind it, you will find that although SUSHI has nothing new to offer, it is still possible to be copied by others and used for commercial purposes, for example, through trading on exchanges. So, you can choose to use tokens from projects similar to Azuki as a way to earn mining profits.

The second question is, “If someone says a token’s price is too high, who would buy it?” There is an interesting question here: most people’s interests are not rewarded. “Even if this token has risen to a high price or has fallen for many days, some people are cashing out.” Therefore, even in bull and bear markets, “leeks” (investors) will still hold SUSHI to make profits. In addition, some community members may feel that if the SUSHI price rises, it may have a more noticeable impact on market sentiment.

The third question is, if the price of a cryptocurrency keeps rising, does it have the ability to acquire more tokens at a faster rate? Perhaps this is the fundamental reason: once the price reaches its peak or bottom, those who want to invest in it will often not immediately abandon their investment portfolio.

The final question is about losing trust over time.

For example, when a person loses more than 500,000 ETH in multiple investments, his company usually invests the remaining funds in DeFi, which leads to an inability to repay debts. In addition, since many protocols are dependent on smart contracts, they have to pay interest for their actions and, in some cases, even find themselves in financial difficulties.

In fact, as long as investors have spent enough money in the past few months to sustain their daily activities, they can earn up to $1 billion in profits. (Source: http://twitter.com/yugalabs)

The answer to the last question is “impermanent loss”. For ordinary people, don’t bet all your money on an “accident”!