You can use Sushiswap to trade one cryptocurrency for another directly — it can’t be used to trade fiat for crypto or vice versa. It uses the Automated Market Maker model pioneered by Uniswap.
You can connect your crypto wallet to Sushiswap at app.sushi.com
To add liquidity, users send equal-value amounts of two cryptocurrencies to SushiSwap. In exchange, they receive Liquidity Provider (or LP) tokens and begin receiving rewards.
Users can deposit their newly created LP tokens into yield farms to earn further APY rewards. This creates extra incentive for users to continue to be part of the liquidity pool over time.
Users of Ethereum-based apps like SushiSwap have to pay transaction fees (also called gas) that can vary widely in price and can make it expensive to use the network. DEXs have a range of risks, so do your research. “Impermanent loss” can result from pairing a more volatile cryptocurrency with a less volatile one in a liquidity pool. Bugs in smart contracts can be exploited. And anyone can create a token, so watch out for “rug pulls.”
Released: August 2020