SushiSwap
Crypto Overview
Project Overview
SushiSwap is a decentralized exchange (DEX) protocol that launched in 2020 as a fork of Uniswap. The platform enables users to trade cryptocurrencies, provide liquidity, and earn rewards through various DeFi mechanisms. SUSHI tokens serve as the protocol's governance token, allowing holders to participate in decision-making and earn a portion of trading fees.
Intended Utility
The SUSHI token was designed to serve multiple purposes: governance rights for protocol decisions, fee sharing from trading activities, and staking rewards. Token holders can stake SUSHI to earn xSUSHI, which entitles them to a portion of protocol trading fees.
Actual Utility and Adoption
SushiSwap maintains significant trading volume and liquidity across multiple blockchain networks. The protocol has expanded beyond its initial DEX functionality to include yield farming, lending, and cross-chain bridge services. Recent data shows continued development activity and regular protocol updates, though trading volumes have decreased from peak levels.
Token Distribution and Governance
The initial token distribution included a controversial migration from Uniswap, but subsequent governance changes have implemented more transparent tokenomics. Currently, the token distribution shows: Treasury/DAO: ~45%, Public Float: ~55%. Team tokens are vested over extended periods with clear lock-up schedules.
Revenue Model Analysis
SushiSwap generates revenue through trading fees (0.3% per trade), with 0.25% going to liquidity providers and 0.05% to SUSHI stakers. This model aligns with Islamic finance principles as it represents actual service fees rather than interest-based returns.
Crypto Impact
To assign a comfort level investing in SushiSwap from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to SushiSwap.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.