A new trend in the cryptocurrency industry is turning eyes even on the wall street as Sushiswap, a clone exchange leeched almost a billion United States dollar worth of tokens from the existing rival exchange.
The sheer magnitude of the event has turned new eyes towards the decentralized finance (DeFi) industry and all of a sudden, everyone wants in on it. The likes of Bloomberg and Wall Street are reporting the event and this seems to be the inception of a new bubble rising up from the cryptocurrency industry.
What is Uniswap?
Uniswap has been working as a decentralized financial exchange that allowed swift swapping of ERC20 token, based on the Ethereum protocol. The unique feature that the decentralized exchange offered has been the direct exchange of tokens without having to create any liquidity.
The founder Hayden Adams created the exchange as a public benefit protocol project that would allow users to swap tokens without having to pay any fees. Instead, the project aimed to balance out the value of the different tokens being traded at the protocol exchange. The exchange charges a minimal 0.3 percent fee distributed among the liquidity providers.
What is Sushiswap?
Created by an individual dubbed Chef Nomi, Sushiswap is a clone of the Uniswap with a small twist. Sushiswap comes with a token Sushi token attached to the exchange. It is everything that Uniswap offers, however, the 0.3 percent fee is used in a slightly different manner than the predecessor. Sushi tokens are created using the 0.05 percent while the remaining 0.25 percent is distributed among the liquidity providers.
The Sushiwap Saga
The Sushiwap vs Uniswap saga has entered its next stage as the cryptocurrency realm can’t do much but to sit back and observe a new trend in the making. The saga has placed almost $1 billion worth of tokens in jeopardy as the saga unfolds.
Initially, the project founder kept about $27 million access giving way to the exit scam rumors. However, as of today the anonymous founder “Chef Nomi” has returned all the funds to the project’s development fund.
Sushiswap setting a new trend?
Regardless of whether the founder returned the fund or not, the cryptocurrency exchange gave way to a new trend. Reportedly another exchange, Yfdex.Finance made an exit scam with almost $20 million in locked funds within its protocol amidst the Sushiswap roars in the market.
It appears that, although Sushiswap saga has been settled down, it gave way to a new trend in the market and bringing much-needed attention to the DeFi world.