What is SushiSwap?

SushiSwap is a decentralized exchange (or DEX, for short), and the first product by Sushi. SushiSwap is also non-custodial, which means that—unlike centralized exchanges—SushiSwap does not need to possess your tokens in order for you to be able to trade them. Instead, SushiSwap allows users to trade trustlessly, peer-to-peer, with liquidity that is supplied by other users. This means that new projects can easily connect to their desired markets as long as some entity is willing to provide the liquidity. To be a liquidity provider, holders of any token need to supply equal parts liquidity for that token (sometimes called the quote token), and a second token (usually ETH, or a stable coin). In return, these holders receive SushiSwap liquidity provider (SLP) tokens that represent their share of the pooled liquidity for that token pair. The existence of this pooled liquidity gives other traders access to the underlying tokens in exchange for a small fee, which is distributed proportionately to all of the liquidity providers. In this sense, SushiSwap is also an “automated market maker” (or AMM, for short). While a user’s underlying tokens remain in the pool, fluctuations in the price of the two underlying tokens automatically recalibrate the quantity of those tokens to conform to the equation x*y=k, where x and y are the quantities of the two paired tokens, and k is constant. This means that even though you supply equal parts of two tokens to the pool, the quantities you receive when you reclaim your liquidity will change relative to the difference in the change in price of the two tokens when you remove the liquidity. If the price of x token goes up, and y token goes down, you will have less of x and more of y, and vice versa. If the price of both tokens goes up, or the price of both goes down, you will nonetheless have relative quantities of each token proportionately to the difference in the change of the price of x and y.

Sushi's metrics that offered to blockchains is:

1. SushiSwap Exchange: swaping

2. Kashi Lending: lending

3. Sushi Yield Farms: farming &

4. SushiBar Staking (xSUSHI): staking

5. Sushiswap Limit Swap Orders

What is Kashi?

Kashi is a lending and margin trading platform, built on the BentoBox, that allows for anyone to create customized and gas-efficient markets for lending, borrowing, and collateralizing a variety of DeFi tokens, stable coins, and synthetic assets. Kashi's broad diversity of tokens is supported through the use of a unique isolated market framework. Unlike traditional DeFi money markets where high-risk assets can introduce risk to the entire protocol, in Kashi, each market is entirely separate (similar to the Sushiswap DEX), meaning the risk of assets within one lending market has no effect over the risk of another lending market. Traditional lending projects have permitted users to add liquidity into a pool-based system. In these systems, if one of the assets were to drop in price faster than liquidators could react, every user and every asset would be negatively impacted. In this sense, the total risk of pool-based platforms determined largely by the riskiest asset listed on the platform. This risk increases with every extra asset that is added, leading to a very limited choice in assets on most platforms. Kashi’s unique design enables a new kind of lending and borrowing. The ability to isolate risks into individual lending markets means that Kashi can permit users to add any token.

What is Yield Farming?

Yield farming in crypto refers to the performance of a particular action for a platform or entity that justifies paying out an annualized percentage yield (APY). Often, this effort entails adding liquidity to a network, and then staking liquidity provider tokens, or adding liquidity to a market for borrowing and lending. Projects incentivize this behavior when it enables them to function more efficiently. Sushi has by and large the most effective system in DeFi for farming yield. This is in part because nearly every token on Sushi is natively yield bearing, which enables Sushi to function very efficiently. In Sushi's case, adding liquidity to any branch of the platform allows the platform as a whole to be more efficient, and every type of market is available on Sushi. It has its own thriving exchange (SushiSwap), it's own lending market (Kashi), and it has staking derivatives (xSUSHI). Sushi is able to deliver a compounded yield farming experience by "stacking" these three yields in simple procedures

What is xSUSHI?

xSUSHI is a token, similar to our SLP tokens, that you receive in exchange for staking SUSHI tokens in the SushiBar. While holding the token, it will appreciate in value, as fees from our exchange platform are "served to the SushiBar." The xSUSHI token is always worth more than a regular SUSHI token, because xSUSHI accrues value from platform fees. When users make trades on the SushiSwap exchange a 0.3% fee is charged. 0.05% of this fee is added to the SushiBar pool in the form of LP tokens. When the rewards contract is called (minimum once per day) all the LP tokens are sold for Sushi (on SushiSwap Exchange). The newly purchased Sushi is then divided up proportionally between all of the xSUSHI holders in the pool, meaning their xSUSHI is now worth more SUSHI. Because of the way the rewards are generated, the price of xSUSHI will increase with the value of SUSHI, and the value of one xSUSHI will always be greater than the value of one SUSHI. Fees generated into the SushiBar are vested for a period of time

What is a limit order?

A limit order is a request to buy or sell an asset at a predetermined price. As distinct from a market order, which executes immediately after an order is placed, a limit order will not execute unless the asset reaches the price set by the user. If the asset reaches this price, the order may be partially or completely filled, depending on market conditions. Limit orders are used to anticipate future price action, so they usually have an expiration that can be adjusted by the user. The user can set the expiration so that the order will either expire or be filled in the specific amount of time they expect the price to reach the limit. It is also possible to place orders with no expiration, and simply cancel them as needed.