SushiSwap is a decentralized exchange (DEX) platform on the Ethereum blockchain. It was launched in 2020 as a fork of Uniswap. SushiSwap allows users to trade cryptocurrencies directly from their wallets, and it uses liquidity pools and automated market-making algorithms. The platform was created by an anonymous founder known as "Chef Nomi." The name "Sushi" was inspired by the food theme used in the DeFi space.
SushiSwap is a decentralized exchange (DEX) built on the Ethereum blockchain that offers several benefits compared to its direct competitors. One of the main advantages of using SushiSwap is its community-driven approach. Unlike centralized exchanges, SushiSwap is governed by its community of token holders, who have the power to propose and vote on changes to the protocol. This decentralized governance model ensures that decisions are made collectively and transparently, reducing the risk of centralization and potential abuses.
Another key benefit of SushiSwap is its focus on incentivizing liquidity providers. By staking their tokens in liquidity pools, users can earn SUSHI tokens, the native currency of the platform. This incentivization mechanism has successfully attracted liquidity to the platform, making it more efficient and reducing slippage compared to some of its competitors.
When compared to other decentralized exchanges like Uniswap, SushiSwap also offers additional features such as yield farming and a broader range of supported tokens. Yield farming allows users to earn even higher returns by depositing their tokens in specialized farming contracts.
Furthermore, SushiSwap has implemented measures to reduce impermanent loss, an inherent risk for liquidity providers. By introducing innovative features like the Kashi lending platform and BentoBox, users can mitigate their exposure to impermanent loss and effectively utilize their deposited assets.
Overall, SushiSwap's community-driven governance, liquidity incentives, additional features, and risk mitigation measures make it an attractive choice for users seeking a decentralized and efficient trading experience. However, it's essential to remember that the decentralized finance (DeFi) space is rapidly evolving, and users should perform their own research and exercise due diligence before engaging with any platform.
SushiSwap is a decentralized cryptocurrency exchange built on the Ethereum blockchain. It operates using an automated market-making (AMM) mechanism that allows users to trade cryptocurrencies directly from their wallets without the need for intermediaries.
The underlying technology behind SushiSwap is a smart contract protocol that enables automated liquidity provision and token swapping. This protocol is known as Uniswap, and SushiSwap is a fork of it with some additional features.
SushiSwap runs on the Ethereum blockchain, which provides a secure and transparent environment for executing transactions and storing data. Ethereum's smart contract capability enables the creation and execution of self-executing agreements, which in the case of SushiSwap, handle the swapping of tokens.
In SushiSwap, users can become liquidity providers by depositing their tokens into liquidity pools. These pools act as reserves from which traders can purchase or sell tokens. Liquidity providers earn fees from the trades that occur in these pools, proportionate to their share of the total pool liquidity.
One of the key features of SushiSwap is the introduction of "yield farming" or "farming pools." Users can stake their SUSHI tokens in these pools and earn additional tokens as rewards. This mechanism incentivizes users to participate in the platform and contributes to the overall liquidity of the exchange.
SushiSwap's functioning relies on the principles of decentralization, transparency, and community governance. The platform is governed by its community through a decentralized autonomous organization (DAO), which allows token holders to propose and vote on changes to the protocol.
Overall, SushiSwap aims to provide a decentralized and efficient way for users to trade cryptocurrencies while rewarding liquidity providers and token holders.
DIA fetches trade data from SushiSwap using its comprehensive data management strategy. When it comes to scraping trade data from DeFi and NFT exchanges, DIA follows different approaches depending on the type of exchange.
For centralized exchanges like Coinbase, Kraken, and Binance, DIA directly collects trades from exchange databases using Rest APIs or WebSocket APIs. This allows for precise and real-time data collection, with frequencies varying from 1 to 7 seconds depending on the exchange.
On the other hand, when it comes to decentralized exchanges like SushiSwap, DIA collects data directly from the blockchain itself. It does this by subscribing to swap events in liquidity pools on various blockchains. By retrieving trading data directly from the blockchain, DIA enhances data accuracy and ensures reliable information.
In the case of NFT marketplaces, DIA captures live trading data from integrated marketplaces' smart contracts. It retrieves this data with a retrieval period ranging from 20 seconds to 1 minute, covering all NFT transactions happening in real-time. This approach allows DIA to provide highly accurate and customizable price feeds for the broader NFT market, without relying on unreliable bids and offer data.
By leveraging a network of WebSockets, decentralized node providers, and direct integration with blockchain protocols, DIA ensures the availability of vast trade data from over 80 exchanges. This comprehensive data management strategy enables DIA to provide highly accurate and customizable price feeds for cryptocurrencies, DeFi, and NFTs.
When it comes to building price oracles with SushiSwap trade data, DIA employs different processes depending on the type of exchange we are referring to. For DeFi exchanges, DIA follows a two-step approach.
In the first step, data cleaning and outlier detection are performed to ensure the resilience of the price estimation process. This involves removing trades with prices that deviate significantly from the current market price. Outliers can result from market manipulation, errors, or flash crashes. DIA applies an Interquartile Range (IR) filter to exclude data points and sets that lie outside an acceptable range relative to the interquartile range.
In the second step, DIA applies price determination methodologies to compute the final price from the remaining data points. One example is the Volume Weighted Average Price (VWAP), which takes into account the different volumes of trades. Trades are collected and weighted by their volume, and the weighted average price is calculated.
For NFT exchanges, the process is different. DIA uses a combination of cleansing filters and pricing methodologies to determine the floor price of an NFT collection. The data is first processed through cleansing filters that exclude market outliers and manipulation techniques. Then, a pricing methodology is applied to determine the final price point.
The simplest methodology is the Floor Price, which provides the lowest sale price of an NFT collection recorded on the blockchain during a given time window. However, this can be manipulated by malicious market actors, so additional filters and methodologies are necessary. DIA offers advanced methodologies such as the Moving Average of Floor Price, which returns the moving average of a collection's floor price. These methodologies can be customized based on specific use cases.
Overall, DIA's process involves data cleaning, outlier detection, and the application of various price determination methodologies to build price feed oracles with SushiSwap trade data, tailored to the specific characteristics of DeFi and NFT exchanges.
Instead of distributing pre-calculated data feeds, DIA covers the whole data journey from individual trade collection, and computation to the last mile of the feed delivery.