Sushiswap vs Uniswap: An In-Depth Review

What Is Sushiswap?

Built on the Ethereum blockchain platform, Sushiswap is a famous decentralised cryptocurrency exchange launched in 2020. This young decentralised exchange (DEX) is becoming increasingly popular for its features and community-driven approach.

Its main aim is to boost the development and growth of Decentralised Applications (dApps) and more adoption for the crypto ecosystem.

As a DEX, Sushiswap enables traders to exchange cryptocurrencies without needing third-party intermediaries, unlike centralised exchanges run by a central authority.

Also, Sushiswap rewards the users with SUSHI tokens for providing liquidity to the exchange. The SUSHI token is native to the Sushiswap network and is used to govern the platform and reward.

Let’s learn more about the unique features of Sushiswap that make it different from similar platforms.

Sushiswap Features

Here are the key features Sushiswap is famous for:

• Decentralised Trading: Sushiswap is a DEX, i.e., it enables users to trade cryptocurrencies with no intermediaries needed.
• Automated Market Making (AMM): To streamline trading, Sushiswap uses an AMM system to ensure that liquidity is always available for trading.
• Onsen Program and Yield Farming: Sushiswap provides yield farming opportunities for liquidity providers (LPs) and lets them earn passive income for participating in the network. Also, the Onsen program provides high-yield rewards for LPs staking in specific pools.
• Governance: Sushiswap includes the community of SUSHI token holders in governing the platform by letting them vote for changes and decisions to be made.
• Low Fees: Sushiswap is a more affordable platform for its lower fees.
• Non-Custodial: Sushiswap is non-custodial, i.e., the users are in complete control of their assets, private keys, and funds.
• Migration Incentives: Sushiswap users can migrate liquidity from other DEXs to Sushiswap.
• Gamification: Sushi Chef and Master Chef levels, designed to incentivise users to participate in the network, are gamification elements in the Sushiswap platform.
• Partnerships and Integrations: A wide array of DeFi projects, lending platforms, wallets, and DEXs have partnered with Sushiswap to expand mutually.

Now that we know the key information about Sushiswap let’s go through the basics and features of Uniswap and then start comparing the two platforms.

What Is Uniswap?

Uniswap is another DEX on the Ethereum blockchain that was launched in 2018. Uniswap attracted a lot of attention for its specific features, ease of use, and decentralised nature, which removed the need for intermediaries.

Using an AMM, Uniswap provides liquidity for non-stop trading. The network’s native token, UNI, is used for governance purposes and to reward token holders.

Let’s get to know the most important features of Uniswap that differentiate it from other projects.

Read More: Top 10 CEX And DEX Crypto Exchanges Of All Time!

Uniswap Features

Here are the features that make Uniswap stand out among many DEXs in the market.

• Decentralised: Uniswap is a DEX (Decentralised Exchange) that needs no intermediary to execute transactions.
• AMM: Uniswap uses an AMM (Automated Market Maker) to simplify the trade process by providing enough liquidity.
• Non-Custodial, Permissionless and Trustless: Uniswap is a trustless and non-custodial exchange that gives users control of private keys and funds, and no centralised party holds their funds. Also, they don’t need permission from a third-party authority, which means improved security.
• Low Fees: Uniswap is favoured by many for its fees that are lower than traditional exchanges.
• No Listing Requirements: Uniswap sets no listing requirements, letting everyone exchange ERC-20 tokens.
• Governance: Uniswap allows token holders to vote for government decisions on the platform.
• Flash Swaps: Offering flash swaps, Uniswap lets users borrow ERC-20 tokens without collateral.

So, now that we have a better understanding of these two projects, it’s time to compare and contrast them and see which one is better. Let’s start with their key differences.

The Key Differences Between Sushiswap vs Uniswap

The following table displays the main differences between Sushiswap vs Uniswap.

Sushiswap vs Uniswap: Price History

• Sushiswap (SUSHI) started trading on Aug 28, 2020, at $2.59.
• Uniswap (Uni) started trading on Sep 17, 2020, at $3.44.
• Sushiswap saw its first significant peak on Sep 02, 2020, at $8.84.
• Uniswap saw its first significant peak on Feb 02, 2021, at $20.36.
• After the first peak, SUSHI fell to its lowest trading price at $0.475981 on Nov 04, 2020.
• Before its first significant peak, Uni fell to its lowest trading price at $1.03 on Sep 17, 2020.
• Sushiswap continued the upward trend and recorded its highest level at $23.38 on Mar 13, 2021.
• Uniswap continued the upward trend and recorded its highest level at $44.92 on May 03, 2021.
• After its highest level, SUSHI declined to $21.44 level, on May 19, 2021.
• After its highest level, Uni declined to $30.13 level, on Aug 15, 2021.
• Since then, SUSHI has kept the downtrend, and now, on Mar 14, 2023, each SUSHI token is traded at $1.20.
• Since then, Uni has kept a downtrend, and now, on Mar 14, 2023, each Uni token is traded at $6.07.

Let’s go through other financial factors of Sushiswap and Uniswap, including their Return on Investment (ROI) in different time frames, All-Time Low (ATL) and All-Time High (ATH), in the following section.

Sushiswap vs Uniswap: ROI, ATL and ATH

The following tables compare the ROI (Return on Investment), ATL (All-Time Low), ATH (All-Time High), and the current price of SHUSI and Uni tokens.

The following sections will compare and contrast the fundamental factors of Sushiswap vs Uniswap, including their

• Consensus Mechanism
• Architecture
• Latest Developments
• NFT
• Fees
• Transaction Speed
• Price Prediction.

Sushiswap vs Uniswap: Consensus Mechanism

Both Sushiswap and Uniswap rely on Ethereum’s consensus mechanism, which has recently upgraded to PoS from PoW to improve scalability, security and efficiency.

Regarding their inner consensus algorithms, both platforms use an AMM system, which determines the assets’ prices and provides liquidity for trading.

Sushiswap vs Uniswap: Architecture

Sushiswap and Uniswap are similar in architecture, as both are DEXs on the Ethereum blockchain, but they have differences we’ll elaborate on below.

• Sushiswap was made as a fork of Uniswap, i.e., it was developed using Uniswap's codebase. But it has the Uniswap codes to start, and after that, it has evolved on its own platform and created unique features and functionality.
• Uniswap is an established network on Ethereum with a user-friendly interface and simple and intuitive design.

Sushiswap vs Uniswap: The Latest Developments

Like any other crypto platform hoping to attract more users, Sushiswap and Uniswap have constantly been developing their platforms. Here is a list of their latest developments.

Sushiswap’s Latest Developments

• Bentobox: Sushiswap’s Bentobox is a new decentralised lending platform that lets users earn interest and keep control of their assets.
• Liquidity Pools: Sushiswap’s new liquidity pools for different tokens are created to incentivise LPs and reward them with SUSHI tokens.
• Kashi: Sushiswap has introduced a lending and margin trading platform to meet the special needs of traders.
• Integration with Yearn Finance: Sushiswap has partnered with Yearn Finance to create a joint venture called "SushiBar" that allows users to earn interest on their SUSHI tokens.

Uniswap’s Latest Developments

• Limit Orders: Uniswap’s new feature enables trading with limit orders, providing users with better control over their trades.
• Governance System Upgrade: Uniswap's updated governance system lets UNI token holders vote on proposals for upcoming network changes.
• Improved Scalability: Uniswap has improved scalability to decrease transaction fees and increase throughput.
• UNI v3: Uniswap’s UNI V3 will improve concentrated liquidity and multiple fee tiers. Learn more about Uniswap V3.

Sushiswap vs Uniswap: NFT

Sushiswap and Uniswap are DEXs and are not specialised in NFTs. However,

• Sushiswap has launched a new marketplace called SushiNFT for buying, selling, and trading NFTs. SushiNFT contains a curated selection of NFTs from various artists and creators.
• Uniswap has also integrated NFTs by enabling NFT trading them. However, this feature is not specifically designed for NFTs, and they can be traded like other ERC-20 tokens.

Sushiswap vs Uniswap: Fees

Both Sushiswap and Uniswap charge a 0.3% fee on trades. However,

• Sushiswap sends a portion of the fees to LPs as an additional reward to incentivise them.
• Uniswap gives a portion of the fees to UNI token holders to let them participate in governance for the long term.
• Both platforms also charge gas fees paid to the Ethereum network to process transactions. The fees vary based on network congestion and transaction complexity.

Sushiswap vs Uniswap: Transaction Speed

Since Sushiswap and Uniswap are built on the Ethereum blockchain, their transaction speed is influenced by network congestion and gas fees.

Having said that, Uniswap V3 improves transaction speed by introducing concentrated liquidity, which improves efficiency and reduces the gas fees needed.

Sushiswap vs Uniswap: Price Prediction

The following table depicts the price prediction of Sushiswap vs Uniswap for the coming years from 2023 to 2030 to draw a clear picture of these two projects’ predicted future prices.

Sushiswap vs Uniswap: Which One Is Better?

Choosing which platform is better between Sushiswap and Uniswap depends on many factors, the most important of which are your preferences and priorities.

• Sushiswap plans incentives for LPs by rewarding SUSHI tokens.
• It has also launched a decentralised lending platform, Bentobox, and the SushiNFT marketplace.
• Uniswap has a larger user base and is more established in the DeFi space.
• It has also offered limit orders and UNI v3.
• Sushiswap’s annual ROI is -68.06%, and Uniswap’s annual ROI is -40.14%, meaning that Uniswap has performed better and has incurred less loss.
• Price predictions indicate that the SUSHI token can get close to $30 by 2030. However, the UNI token is expected to reach a higher price level of about $130.

All in all, considering Sushiswap vs Uniswap, we can see that both platforms are reliable DEXs, but if you consider them as investment options, Uniswap can fly higher and hit higher aims in the long run.

However, Sushiswap can be better for those who wish to invest smaller funds.

Summary

As this in-depth review revealed, Sushiswap and Uniswap are popular DEXs with unique features and benefits. But to choose one of them, you need to do your own research and consider all factors.

To this aim, you can check Cryptologist to read its thorough reviews, analyse the projects, monitor your favourite ones, and finally choose the bests.

FAQ

The following subsections provide the most frequently asked questions about Sushisap vs Uniswap, plus their answers.

Is SushiSwap a Clone of Uniswap?

Yes, Sushiswap is a fork of Uniswap, i.e., it was built on top of Uniswap’s codebase by Chef Nomi on Aug 28, 2020.

Is Uniswap or SushiSwap Cheaper?

Both projects charge a 0.3% fee on transactions. But they have different methods for distributing a portion of the fees among holders and LPs.

Why Use SushiSwap Over Uniswap?

SushiSwap charges a 0.3% fee for swaps, 0.25% of which is distributed among LPs, and the rest is rewarded to SUSHI token holders. Uniswap offers different fee tiers, which are only distributed among LPs.

Why Is Uniswap The Best?

Uniswap is a large DEX on Ethereum, which is famous for its convenience and user-friendliness. It requires no sign-up for an account and offers interest for holding tokens through Uniswap's liquidity pools.