DEX targets diverge as SushiSwap (SUSHI) and Uniswap (UNI) climb to new highs

Uniswap and SushiSwap have emerged as two of the top decentralized exchanges (DEX) They are leading the current DeFi bullish move.

Despite SushiSwap’s controversial beginnings, in recent months it has caught up with Uniswap in terms of activity on the platform, total locked value and in the price of its SUSHI governance token.

A recent Delphi Digital report took a closer look at the two projects and broke down the fundamental differences in the way each has diverged in their development. from SushiSwap’s vampire attack to Uniswap.

SUSHI price vs. UNI. Source: TheTIE

SushiSwap originally emerged as a fork of Uniswap v2 with the inclusion of the SUSHI governance token that was distributed to community participants.

At that time, Uniswap had not yet launched the UNI token., which would later be distributed to users who had interacted with the protocol, either by trading or providing liquidity.

Although the UNI release has likely been planned at some point, The surprise launch was viewed by many as an attempt to stop a potential vampire attack that would drain Uniswap’s liquidity to SushiSwap..

After a rocky start that saw SushiSwap co-creator Chef Nomi ditch all of his SUSHI tokens on the market worth $ 14 million Ether (ETH), then return those funds to the treasury, SushiSwap co-founder ‘0xMaki’ took over the leadership of the project and helped it correct its course and become a viable contender among DeFi platforms.

Total value locked on Sushiswap. Source: Defi Llama

When it comes to comparing the original token distribution, 65% of UNI’s original supply was distributed to the community through liquidity mining and controlled treasury and governance, compared to 80% of all SUSHI tokens.

In this way, The SushiSwap platform has emerged as a more community-controlled project that is self-financing with 9% of all SUSHI issued by the system awarded to the treasury. However, Uniswap has received some support from VC with a total of $ 12 million raised from various sources to help fund future development..

SushiSwap is more decentralized than Uniswap

The differences in the development path started shortly after the fork and resulted in two different platforms offering a different experience.. Excitement continues to build for the release of Uniswap v3, although only a handful of insiders know exactly what the new version will entail.

Although users and token holders trust the top developers who have created an amazing interface so far, many in the crypto space prefer a project with more transparency and community involvement.

SushiSwap stays more in the community spirit of cryptocurrency this way; It has a core team of developers that is more transparent about what is coming and where the project is going in the future.

SushiSwap has also established an effective governance system that allows community members to have a say in important decisions. Uniswap’s governance system is less conducive to community engagement, which could be the result of the hasty launch of the UNI token and the desire to create a solid foundation before integrating the governance of the community.

Divergence in the value proposition and community participation

In recent months, the Uniswap team has focused on building v3. As Delphi Digital pointed out, Uniswap’s advantage of being the first to arrive has provided the platform with a lot of integrations, since projects across the sector were looking for the platform for the liquidity it provided.

On the other hand, SushiSwap has taken care to establish connections with other booming DeFi platforms, especially with the yEarn ecosystem., which includes yEarn, Cream, Pickle, Cover, and Alpha. This will help increase the use of SushiSwap’s liquidity offering and help make the platform more resilient to upcoming challenges..

SushiSwap pool liquidity against Uniswap. Source: Dune Analytics

More recently, SushiSwap has started to incentivize liquidity for longer-tail assets as it seeks to establish itself as a place to access projects with long-term viability.. Conversely, Uniswap has been a way for new projects to get ahead of liquidity and community exposure.

One of the most significant differences between the two platforms refers to the generation of liquidity.

In March 2021, the UNI community will have the ability to divert 0.05% of all platform commissions to Uniswap’s treasury, which is governed by the UNI token.. The commissions will accumulate in the treasury and the holders of the UNI token will be able to vote on what to do with those funds in the future.

SushiSwap has had the rate of 0.05% since its inception in September 2020 and the governance council agreed that the money generated is used to buy SUSHI directly and award it to stakers., providing a source of direct income.

Regarding the commissions generated, Uniswap is clearly in the lead, for the moment. With a greater number of available trading pairs and huge liquidity reserves for the major currencies, the Uniswap platform records higher volumes and this translates into more cash flow for liquidity reserves and UNI token holders.

Uniswap volume vs. SushiSwap. Source: TheTIE

But since the commissions go to a treasury instead of going directly to the token holders, UNI has been more attractive to investors with a longer-term perspective who prefer the approach of “accumulating capital in the treasury during the first years. “

A) Yes, SushiSwap offers a more community-oriented and governed system that provides direct income to token holders from the commissions generated on the platform, while Uniswap is working on a long-term plan to create a unique DEX that meets the needs of all traders.

The advantage of being the first to act and dominant liquidity funds have allowed Uniswap to compete with the likes of Coinbase in terms of trade volume and longtime proponents of cryptocurrency appreciate this achievement.

DEX weekly volume. Source: Dune Analytics

SushiSwap has risen from the ashes to create a community-driven project that those just getting started in crypto can appreciate. for its ability to generate immediate income.

SUSHI has also seen a recent spike in trade volume on Uniswap, showing that the fight for the title of the best DEX has just begun in these first rounds of the bull cycle of cryptocurrencies.

SUSHI volume on Uniswap. Source: Glassnode

The DeFi sector is just beginning to gain the attention of the traditional financial sector and as liquidity, total locked value and the price of the government token of each platform reach new highs for both Uniswap and SushiSwap., it will be interesting to observe how the two platforms continue to diverge in their development.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of All investments and operations involve risk, so you should do your own research when making a decision.

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