Key Takeaways
- SushiSwap allows users to trade cryptocurrencies directly with each other, without the need for a central authority.
- SushiSwap uses automated market makers instead of traditional order books for trading.
- The decentralized exchange is a hard fork of Uniswap.
What Is SushiSwap (SUSHI)?
SushiSwap (SUSHI) is a decentralized exchange (DEX) that launched on the Ethereum blockchain in August 2020 and now runs on many other networks. The DEX was actually forked, meaning it derived its codebase from another popular DEX called Uniswap.
Both platforms share similar functionalities, but SushiSwap differentiates itself by offering its own token, SUSHI. Token holders can vote on proposals that influence the future of the SushiSwap protocol and earn SUSHI tokens for providing liquidity or participating in yield farming.
Leadership And Governance
Early on, SushiSwap’s anonymous creator, Chef Nomi, withdrew funds meant for development and returned them after a community backlash. In October 2022, SUSHI holders elected Jared Grey as Head Chef. In June 2024, the Burū no Shinka proposal created Sushi Labs, a development arm with Grey as Managing Director. The Sushi DAO still governs the protocol: holders vote on Snapshot with SUSHIPOWAH, and four councils manage resources. In January 2025, Sushi Labs bought Shipyard Software, which built Blade, an AMM that Sushi introduced in October 2025.
How Does SushiSwap (SUSHI) Work?
SushiSwap operates as a decentralized exchange (DEX) on Ethereum and dozens of other networks. Unlike traditional exchanges that rely on order books, SushiSwap utilizes an automated market maker (AMM) model. Here’s a breakdown of how the DEX works:
Liquidity Pools
Liquidity Pools are smart contract-managed collections of crypto assets deposited by users called liquidity providers (LPs). LPs contribute the equal value of two tokens to a pool, for instance DAI and ETH. In return, they earn a portion of the trading fees on that pool.
Automated Swapping
When a user wants to swap one token for another on SushiSwap, they trade against a liquidity pool, not directly with another user. The AMM utilizes a mathematical formula to determine the exchange rate based on the relative amounts of each token in the pool. This is known as the Constant Product Market Maker (CPMM).
SushiSwap V3, launched in May 2023, added concentrated liquidity, so LPs can place their funds in a chosen price range. Since June 2023, Sushi has also run an aggregator that routes swaps across other DEXs. On October 7, 2026, DefiLlama tracked SushiSwap pools on more than 40 networks, including Stellar (added in February 2026), and put Sushi’s total value locked at about $103 million, mostly on Ethereum, Stellar, Katana, Polygon and Arbitrum.
SushiSwap (SUSHI) Token And Tokenomics
Tokenomics
The SUSHI token is SushiSwap’s native cryptocurrency. It is used for:
- Staking in the Sushi Bar, where xSUSHI holders earn a share of trading fees
- Governance
Token Details
Total Supply: about 291.5 million SUSHI (no hard cap)
Circulating Supply: about 286.7 million SUSHI
Price (early October 2026): about $0.24
Market Capitalization (early October 2026): about $67.5 million
Price, market capitalization and supply figures are from CoinGecko as of October 7, 2026, and change constantly.
Distribution
SUSHI is distributed to liquidity providers on SushiSwap via liquidity mining. This creates an incentive for users to hold SUSHI and can help to maintain the price of the token.
Where Can I Buy SushiSwap (SUSHI)?
Binance – Binance is a major exchange offering a wide range of cryptocurrencies. It offers multiple ways to buy crypto, including credit cards, debit cards, and peer-to-peer (P2P) trading.
Bybit – This exchange is known for its derivatives and margin trading features, but you can also use the platform for spot trading.
Coinbase – Coinbase is an American-based cryptocurrency exchange that allows you to buy cryptocurrencies using various payment methods, including bank transfers, debit cards, and wire transfers.
Is SushiSwap (SUSHI) A Good Investment?
Pros
- User-Friendly Platform – SushiSwap’s interface is designed to be easy to navigate, even for beginners. The Japanese restaurant theme makes it fun and approachable for new DeFi users.
- Decentralized Exchange (DEX) – SushiSwap allows users to maintain control over their own assets at all times. You don’t need to hand over your crypto to a third party.
- Multiple Features – SushiSwap offers swaps through its aggregator, cross-chain swaps with SushiXSwap, limit orders and DCA, and Blade, a DEX for blue-chip tokens. Kashi lending and the MISO launchpad stopped being maintained in December 2022, and a newer Launchpad runs on Robinhood Chain.
Cons
- Impermanent Loss – When you provide liquidity to a pool, there’s a risk of impermanent loss if the price of the tokens you deposit diverges significantly.
- Security Risks – Like all DeFi platforms, SushiSwap is susceptible to hacking and smart contract exploits. It’s important to be aware of the risks before using any DeFi platform. In April 2023, a bug in Sushi’s new RouteProcessor2 router let attackers drain about 1,800 WETH from one user’s wallet, and Sushi later opened a claim portal for affected users.
- Competition – The DeFi space is crowded, and SushiSwap faces stiff competition from other established DEXs like Uniswap.
Is SushiSwap Worth Your Money?
Whether SushiSwap (SUSHI) is a good investment depends on your risk tolerance and goals. Remember, this guide only provides a starting point for your research. Always conduct your due diligence before making any investment decisions.
