Sushi (SushiSwap)
About
Sushi is a multichain decentralized exchange (DEX) and DeFi hub offering an automated market maker (AMM) for token swaps across numerous EVM and non-EVM chains, a smart order-routing aggregator that sources liquidity from various DEXs, and additional products including limit orders, dollar-cost averaging, cross-chain swaps, perpetuals, and multiple liquidity pool models (V2 constant-product, V3 concentrated liquidity, and Blade — a no‑impermanent‑loss pool using a Formula Market Maker). It serves traders seeking optimal swap execution and liquidity providers looking to earn yield across a broad multi‑chain ecosystem.
Where Does Yield Come From?
Sushi offers several ways to earn yield across its multi-chain exchange and DeFi hub. Here are the main sources:
AMM Liquidity Pools (V2 and V3)
Liquidity providers (LPs) deposit pairs of tokens into pools that facilitate swaps. In V2 pools (constant-product model), every trade charges a 0.30% fee, which is split among all LPs in proportion to their share of the pool. V3 pools let LPs concentrate their liquidity within a specific price range and choose from several fee tiers (0.01%, 0.05%, 0.30%, or 1.00%) — traders pay the fee, and LPs inside the active range earn it. On top of trading fees, LPs can also stake their LP tokens in "Onsen" farms to earn additional SUSHI token rewards.
Blade (Formula Market Maker)
Blade pools hold multiple blue-chip assets (ETH, WBTC, USDC, USDT, DAI) and generate returns not from trading fees but from a daily rebalancing strategy that systematically buys low and sells high. The system uses off-chain pricing verified on-chain, plus price oracles, to eliminate impermanent loss. Traders' orders execute the rebalancing at no cost to LPs. This approach is similar to a Modern Portfolio Theory style of harvesting gains.
xSUSHI Staking (SushiBar)
When you stake SUSHI tokens, you receive xSUSHI in return. From every swap in V2 pools, 0.05% of the trade amount (out of the total 0.30% fee) is used to buy SUSHI on the open market. Those purchased tokens are then distributed to xSUSHI holders, creating a steady buyback-and-distribute yield stream for stakers.
SUSHI Liquidity Incentives (Onsen Farms)
The protocol mints new SUSHI tokens (originally 100 SUSHI per block after the bootstrapping phase, adjustable by governance) and allocates them to selected liquidity pools as extra rewards. This encourages LPs to provide liquidity to pairs that the community wants to support.
Aggregator Fee
Sushi's smart order-routing tool (the Aggregator) charges a 0.35% fee on swaps it executes across different DEXs. This fee contributes to protocol revenue — some goes to the treasury, and some is used for buybacks that benefit xSUSHI holders.
All fee percentages, token emission schedules, and reward distributions can be changed by on-chain governance (SUSHI token holders vote). Yields are not guaranteed — they vary with pool composition, trading volume, and overall market conditions.
Persons
Alex McCurryo
Leading the @SushiSwap Protocol
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
ABDK Consulting23-03-2021 |
| The audit found no critical security flaws in the Uniswap V3 core contracts; the two moderate issues were either acknowledged as acceptable risks or fixed, and the remaining minor findings are largely code‑style and documentation improvements that do not undermine protocol safety. |
| The audit identified two critical-class (high-severity) bugs—one enabling free pool draining and one masking failed transfers—both of which were remediated before deployment. The remaining medium and low issues were addressed or documented, and the overall security posture of Uniswap V3 Core is considered robust following the fixes. | |
ABDK Consulting26-04-2021 |
| The two critical vulnerabilities were fixed before release, but one major unresolved flaw (missing token ID existence check) and numerous minor code-quality issues remain open, making the contracts reasonably safe for deployment only after the major item is addressed. |
Backers
No investor or backer information was found on the official Sushi website, the GitHub organization profile, the blog, or the documentation. Neither specific venture capital firms, funding rounds, nor investment amounts are mentioned on these first‑party sources.
Legal
Legal form
Limited (Ltd.)
Registration jurisdiction
British Virgin Islands (Tortola)
Status and notes
The operating entity is Sushi Labs Limited, a BVI company registered at Mandar House, 3rd Floor, P.O. Box 2196, Johnson's Ghut, Tortola, British Virgin Islands (disclosed in the Privacy Policy at /legal/privacy-policy). No Terms of Service, imprint, or additional legal disclosure pages are publicly available on the official website. The EU representative is gunnercooke GmbH (Berlin, Germany).