SushiSwap (SUSHI) is a decentralized cryptocurrency exchange (DEX) and automated market maker (AMM) protocol built on the Ethereum blockchain. It was created as a fork of Uniswap to provide users with more features, incentives, and control over their trading experience. SushiSwap allows users to swap various ERC-20 tokens directly with each other, provide liquidity to trading pools, and earn rewards in the form of SUSHI tokens.
The SUSHI token serves multiple purposes within the SushiSwap ecosystem. It can be used for governance, allowing token holders to vote on proposals related to the platform's development, fee structures, and other important decisions. Additionally, SUSHI holders can stake their tokens in liquidity pools to earn a share of the trading fees generated by those pools. This incentivizes liquidity provision and helps to ensure the smooth functioning of the exchange.
A portion of the trading fees collected on SushiSwap is used to buy back and burn SUSHI tokens, reducing the overall supply of tokens.
