Comparison between Uniswap and SushiSwap
As a DeFi supporter, you may have heard of Uniswap and SushiSwap. If Uniswap is considered as one of the best DEX. SushiSwap will then be reviewed as an upgrade and is greatly improved in terms of design. In this article, it will help you make a specific evaluation of these two protocols when comparing Uniswap and SushiSwap. Please go directly to the following article for details.
First of all, you need to know what Uniswap and SushiSwap platforms are!
After reading the two articles above, let’s get started.
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SushiSwap is a subsidiary of Uniswap. Therefore, SushiSwap inherits all the power of Uniswap. In the future, Uniswap and SushiSwap’s development direction is considered quite strong. If Uniswap is seen as an innovation leader in AMM automated marketplace creation, then SushiSwap can create a product that offers problem solving and focuses primarily on functionality. more features to replace existing features.
However, at present, the distribution of liquidity between very similar protocols is disadvantageous for both liquidity providers and users. When liquidity in DeFi is spread across many different AMM protocols, users are likely to have a lot of bad experiences.
Recommended for liquidity providers
One of the big differences between Uniswap and SushiSwap is the benefits that this protocol brings to Liquidity Providers (LPs).
If the Uniswap protocol only creates opportunities to earn transaction fees from pools, and if they withdraw funds, they will no longer receive passive income streams. And LPs that join early will see their profits diminish due to the participation of another great LP.
Therefore, SushiSwap is very supportive of its LP. Apart from monetizing pool transaction fees, SushiSwap also provides passive collection income even after LPs retire from pools, and especially LPs who join early to become affiliates. Uniswap.
system weakness
If Uniswap uses fees to distribute LPs. SushiSwap then uses a different method, i.e. transaction fees are used to generate SUSHI tokens. These tokens are used as a reward for liquidity providers, which has helped SushiSwap attract a large number of investors.
A fact that shows the difference between the two dimensions mentioned above and the problems faced by the incumbents. Show that both platforms can crash very quickly after token launch. Because it is a process that requires many transactions when trading moves occur. And that affects transaction costs, which increases transaction costs.
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