SushiSwap Review: Key Features and Pros&Cons

Name: SushiSwap
Author: SushiSwap

What it is:SushiSwap is a decentralized exchange (DEX) and automated market maker (AMM) on Ethereum and over 30 chains, forked from Uniswap in 2020, enabling token swaps via liquidity pools with SUSHI governance.
Best for:Multi-chain yield farmers, DeFi protocols building integrations, Arbitrageurs seeking low-fee pools
Pricing:Free tier available, paid plans from 0.3% per trade
Rating:72/100Good
Expert's conclusion:SushiSwap is ideal for advanced DeFi users who require cross-chain liquidity and governance participation.

Reviewed byMaxim Manylov·Web3 Engineer & Serial Founder

Company Overview

SushiSwap is a Decentralized Exchange (DEX) and Blockchain Protocol that was created by being Forked from Uniswap which is Governed by the Sushi DAO, and utilizes the SUSHI Token as a form of community governance and to reward the community. SushiSwap was originally launched in August 2020 by an anonymous founder Chef Nomi, allowing for users to swap tokens using liquidity pools and now also offers lending and yield farming capabilities on multiple blockchains. SushiSwap emphasizes community-driven development after early issues and leadership transition.

Active

📍Decentralized / Remote

📅Founded 2020

🏢DAO

TARGET SEGMENTS

Crypto TradersLiquidity ProvidersDeFi UsersYield Farmers

Key Metrics

📊

$3B+

Total Value Locked (TVL)

📊

$500B+

Cumulative Trading Volume

📊

100+

Supported Tokens

📊

Multiple

Supported Blockchains

📊

August 2020

Launch Date

Credibility Rating

72/100

Good

SushiSwap has shown growth and resilience since the controversy at launch and continues to operate with significant volumes and total value locked (TVL) under community governance. SushiSwap still faces negative implications due to the exit scam allegations against Chef Nomi and is currently under investigation by the United States Securities and Exchange Commission (SEC).

BREAKDOWN

Product Maturity85/100

Company Stability65/100

Security & Compliance60/100

User Reviews70/100

Transparency75/100

Support Quality75/100

TRUST SIGNALS

$3B+ TVL across chainsCommunity governance via Sushi DAO5+ years of operation post-recoverySUSHI token for fee sharing and voting

Company History

2020

SushiSwap Launched

On August 28, Chef Nomi forked Uniswap and introduced SUSHI token incentives for providing liquidity to the new protocol.

2020

Founder Controversy

On September 5, Chef Nomi withdrew $14 million worth of ETH and was accused of an exit scam. Chef Nomi eventually returned the $14 million (September 11) and handed over control of the project.

2020

Leadership Transition

Before handing over control to the community, Sam Bankman-Fried of FTX took control of the project.

2022

Jared Grey Becomes Head Chef

Jared Grey became the leader of the SushiSwap protocol.

2023

SEC Subpoena

The U.S. SEC issued a subpoena to the Sushi DAO and Head Chef Jared Grey, and a proposal to create a legal defense fund has been presented to the community.

2024

Labs Model Transition

The Sushi DAO held a vote and over 62% of voters were in support of creating Sushi Labs to handle the operational tasks of the SushiSwap protocol.

2025

Market Expansion

With its expansion into lending, yield farming, and Automated Market Maker (AMM) capabilities across multiple blockchains, SushiSwap reached a total value locked (TVL) of $3 billion.

Key Features

✨

Automated Market Maker (AMM)

SushiSwap allows users to swap tokens via liquidity pools where users can deposit their own assets and earn a portion of trading fees associated with each trade made within their respective pool.

✨

SUSHI Token Governance

SushiSwap holders vote on changes to the protocol through the Sushi DAO, and they are rewarded for voting with staking rewards.

✨

Liquidity Mining

To encourage user participation and increase pool depth, SushiSwap provides SUSHI token rewards to those who provide liquidity to the pools.

✨

Yield Farming

In addition to receiving a portion of the trading fees associated with each trade made within their pool, users can choose to "farm" additional rewards by staking their LP tokens.

💬

Multi-Chain Support

SushiSwap will allow users to deploy their protocol across multiple blockchains to give them greater access to more tokens and to reduce transaction costs.

✨

Lending Services

Alongside the DEX functionalities provided by SushiSwap, users will be able to take advantage of DeFi lending to diversify their yields. BEFORE WE GET STARTED ON THIS ASSIGNMENT, PLEASE MAKE SURE YOU READ AND UNDERSTAND ALL OF THE INSTRUCTIONS CAREFULLY BEFORE YOU START WORKING ON YOUR HOMEWORK. YOU WILL BE REQUIRED TO COMPLETE A SHORT QUIZ AT THE END OF THE VIDEO, SO BE PREPARED FOR THAT WHEN YOU TAKE THE VIDEO. YOU MAY ALSO WANT TO PRINT OUT THESE QUESTIONS AS THEY WILL NOT BE PROVIDED IN THE QUIZ AT THE END OF THE VIDEO. THE QUESTIONS ARE:

Tech Stack

Infrastructure

Multi-chain deployment on Ethereum and L2s with decentralized liquidity pools

Technologies

SolidityEthereumSmart ContractsVyper

Integrations

Uniswap V2 ForkMultiple BlockchainsWallets (MetaMask)DeFi Protocols

AI/ML Capabilities

No AI/ML components; relies on deterministic smart contracts for AMM and governance

Inferred from protocol descriptions as Uniswap fork; official docs confirm Solidity usage

Use Cases

Crypto Traders

The use of deep liquidity pools allows for the ability to swap tokens permissionlessly with low slippage as well as providing access to rare pairs that are unavailable on centralized exchanges (CEXs).

Liquidity Providers

Users can earn both trading fees and SUSHI rewards on the pairs they provide, which can increase their passive yields in DeFi.

Yield Farmers

Providing liquidity allows users to stake their LP tokens and earn SUSHI and partner rewards through high APY pools.

DeFi Enthusiasts

Users can participate in DAO governance voting for protocol upgrades by utilizing their SUSHI holdings.

NOT FORHigh-Frequency Traders

This is not a good option because of the gas fees and MEV risks associated with Ethereum-based Automated Market Makers (AMMs).

NOT FORRegulated Institutions

This is also not a good option due to the lack of KYC/AML, potential SEC scrutiny, and smart contract risks without full audits.

Pricing

Pricing information with service tiers, costs, and details
☐Service	$Cost	ℹDetails	🔗Source
Spot Trading (v2)	0.3% per trade	0.25% to liquidity providers, 0.05% to SUSHI token holders	—
Concentrated Liquidity (v3)	0.01%, 0.05%, 0.3%, or 1%	Customizable fee tiers set by liquidity providers for each pool	—
Liquidity Provision	$0	Earn share of trading fees proportional to pool ownership	—
Yield Farming/Staking	$0	Stake SUSHI or LP tokens to earn rewards from protocol fees	—

Spot Trading (v2)0.3% per trade

0.25% to liquidity providers, 0.05% to SUSHI token holders

Concentrated Liquidity (v3)0.01%, 0.05%, 0.3%, or 1%

Customizable fee tiers set by liquidity providers for each pool

Liquidity Provision$0

Earn share of trading fees proportional to pool ownership

Yield Farming/Staking$0

Stake SUSHI or LP tokens to earn rewards from protocol fees

Competitive Comparison

Feature	SushiSwap	Uniswap	PancakeSwap	Raydium
Core Functionality	DEX + Yield Farming	DEX + Hooks	DEX + Farming	DEX + Serum Integration
Multi-chain Support	Yes (20+ chains)	Yes (mainstream chains)	BNB Chain focus	Solana focus
Trading Fee	0.3% (customizable v3)	0.3%	0.25%	0.25%
Liquidity Incentives	SUSHI rewards	Limited	CAKE rewards	RAY rewards
Governance Token	SUSHI (stakable)	UNI	CAKE	RAY
TVL Ranking	#10-15	#1	#3	#2
Fees 30d (Annualized)	$5.92m	$2.5B	$1.4B	$2.4B
On-chain Governance	Yes	Yes	Yes	Limited
Concentrated Liquidity	Yes (v3)	Yes (v3)	No	Partial
API Availability	Yes	Yes	Yes	Yes

Core Functionality

SushiSwapDEX + Yield Farming

UniswapDEX + Hooks

PancakeSwapDEX + Farming

RaydiumDEX + Serum Integration

Multi-chain Support

SushiSwapYes (20+ chains)

UniswapYes (mainstream chains)

PancakeSwapBNB Chain focus

RaydiumSolana focus

Trading Fee

SushiSwap0.3% (customizable v3)

Uniswap0.3%

PancakeSwap0.25%

Raydium0.25%

Liquidity Incentives

SushiSwapSUSHI rewards

UniswapLimited

PancakeSwapCAKE rewards

RaydiumRAY rewards

Governance Token

SushiSwapSUSHI (stakable)

UniswapUNI

PancakeSwapCAKE

RaydiumRAY

TVL Ranking

SushiSwap#10-15

Uniswap#1

PancakeSwap#3

Raydium#2

Fees 30d (Annualized)

SushiSwap$5.92m

Uniswap$2.5B

PancakeSwap$1.4B

Raydium$2.4B

On-chain Governance

SushiSwapYes

UniswapYes

PancakeSwapYes

RaydiumLimited

Concentrated Liquidity

SushiSwapYes (v3)

UniswapYes (v3)

PancakeSwapNo

RaydiumPartial

API Availability

SushiSwapYes

UniswapYes

PancakeSwapYes

RaydiumYes

Competitive Position

vs Uniswap

While SushiSwap provides additional multi-chain support (20+ chains vs Uniswap's focus on mainstream chains) and yield farming incentives that Uniswap does not provide, it falls short in TVL, total trading fees ($5.92 million vs $2.5 billion annualized) and brand recognition compared to Uniswap.

For yield farmers who seek multi-chain exposure, SushiSwap may be the better choice; for spot trading volume, Uniswap is likely to be preferred.

vs PancakeSwap

Although both platforms place an emphasis on yield farming, PancakeSwap leads the BNB ecosystem in terms of trading volume ($1.4 billion in fees vs $5.92 million for SushiSwap) and trading fee rates (0.25% vs SushiSwap's 0.5%), however, SushiSwap has cross-chain capabilities and a lower overall market share.

If you are primarily focused on the BNB Chain, then PancakeSwap is probably your best bet; if you prefer to have access to multiple chains for trading purposes, then SushiSwap is likely to be your best bet.

vs Raydium

In terms of Solana DEX volume, Raydium dominates at $2.4 billion in fees while SushiSwap spreads its offerings across many chains with a lower degree of per-chain dominance. SushiSwap, however, offers more DeFi composability than Raydium beyond pure Automated Market Making (AMM).

On the other hand, if you are looking for speed on the Solana network, Raydium is your best bet; if you are interested in cross-chain DeFi exposure, SushiSwap is likely to be your best bet.

vs Curve

SushiSwap is a general-purpose decentralized exchange (DEX) whereas Curve focuses on stablecoins. SushiSwap has higher general trading volumes than Curve, however, Curve is more efficient in terms of stablecoin usage and has lower slippage.

If you are focused on making trades involving various cryptocurrencies for diversification, SushiSwap is likely to be your best bet; if you are looking to optimize your stablecoin trades, Curve is likely to be your best bet.

Pros Cons

Pros

Multi-chain deployment — Available on over 20 blockchain networks including, but not limited to, Ethereum, Polygon, and Arbitrum.
Customizable fees — V3 pools allow users to choose from 0.01%-1% tiers depending on their desired risk-reward profile.
Dual reward system — Trading fees will be divided equally between the liquidity providers (LPs), (0.25%), and SUSHI stakers (0.05%).
Active governance -- SUSHI holders vote on upgrades to protocol and parameters (active)
Composable DeFi -- The protocol integrates with lending, perps and other DeFi protocols (composability)
Well-established protocol -- Billions of dollars in cumulative volume and fees generated (established)
Non-custodial -- Users maintain control over their funds and private keys (non-custodial)

Cons

Low TVL/Vol -- Significantly behind Uniswap, Raydium, Pancakeswap (low tvl/vol)
Fragmented Liquidity -- Liquidity is distributed across multiple chains reducing liquidity per pool (fragmentation)
Contract Risks -- Multiple contracts increases the scope of an audit (contract risk)
Volatility of SUSHI Token -- The price volatility of the SUSHI token will impact the economic incentives of stakers (volatility)
Competitive Pressure -- Losing market share to chain specific DEX leaders (competitive)
Dependence On Gas Fees -- Pools that exist on Ethereum are still expensive due to high gas fees (gas dependence)
Complexity Of UX -- Yield optimization involves a deep understanding of multiple mechanisms (complexity)

Best For

Multi-chain yield farmers — Maximizing Opportunities With SUSHI + Fee Rewards -- Deploying SUSHI + fee rewards to as many chains as possible (opportunity)
DeFi protocols building integrations — Established AMM w/ yield farming hooks and governance composability -- A well established Automated Market Maker with yield farming hooks and governance composability (AMM)
Arbitrageurs seeking low-fee pools — v3 Concentrated Liquidity 0.01% Tier -- A new concentrated liquidity tier on SushiSwap V3 (tiered)
SUSHI token believers — Trading Fees & Governance Participation Rewards -- The opportunity to earn both trading fees and governance participation rewards (rewards)
L1/L2 experimenters — First To Deploy To Emerging Chains -- SushiSwap's ability to quickly deploy to emerging chains before competitors (first mover advantage)

Not Suitable For

High-volume spot traders — Uniswap or Raydium Have More Volume And Better Liquidity Than SushiSwap -- Currently, Uniswap or Raydium have much greater volume and better liquidity than SushiSwap (volume and liquidity).
Stablecoin-only traders — Curve Provides Better Efficiency For Stable Pairs -- Curve offers better efficiency for stablecoin pairs (efficiency)
Ethereum mainnet-only users avoiding L2s — High Gas Costs -- Using Uniswap V3 on the main net may be more cost effective due to gas costs (cost).
New DeFi users seeking simplicity — Too Many Options Are Overwhelming -- Try using a single chain DEX such as PancakeSwap instead of multi-chain (options).

Limits Restrictions

Trading Fees: 0.3% standard (v2), 0.01%-1% (v3 pools)
Liquidity Provider Share: 0.25% of trading fees (proportional to pool share)
Protocol Revenue Share: 0.05% of trading fees to SUSHI stakers
Chain Availability: 20+ chains but liquidity depth varies significantly
Slippage Protection: Depends on pool liquidity; thin pools have high slippage
Impermanent Loss: Standard AMM risk for all liquidity positions
Smart Contract Risk: Multiple deployments across chains increase audit requirements
Token Approval Risks: Unlimited approvals expose wallets to exploits
Geographic Availability: Permissionless but restricted by chain sanctions

Security Compliance

Audited Smart ContractsMultiple audits across v2/v3 contracts and chain deployments by top firms

Non-Custodial ArchitectureUsers retain private key control; no central entity holds funds

Battle-Tested Protocol$755m+ cumulative fees, billions in volume across 5+ years

Timelock Governance2-day timelock on critical proposals prevents immediate exploits

Decentralized Validator SetNo single point of failure; runs on permissionless blockchains

TransparencyAll transactions on-chain, verifiable via block explorers

Bug Bounty ProgramsActive bounties through Immunefi and protocol treasury

Multi-Sig TreasuryProtocol treasury secured by multi-signature wallets

Customer Support

Channels

Official community support channelOfficial announcements and communicationSelf-service knowledge base at sushi.com/faqNo official support; beware of scams

Hours: Community support 24/7 via Discord
Response Time: Community-dependent; no guaranteed SLAs
Specialized: None - fully community supported

Support Limitations

•No official 1:1 support channels like email or live chat

•Telegram channels often impersonate official support

•Community-driven support only; no guaranteed response times

•High scam risk in unofficial Telegram support groups

Api Integrations

API Type: Subgraph GraphQL APIs for each supported chain
Authentication: Public read APIs; no authentication required
Webhooks: Not natively supported; use The Graph subscriptions
SDKs: Official JavaScript SDK; community SDKs for Python, Rust
Documentation: Comprehensive at docs.sushi.com; includes code examples and hosted Subgraphs
Rate Limits: The Graph hosted service: 100 queries/sec free tier
Use Cases: Query pool data, user positions, transaction history, analytics
Chains Supported: 38+ chains with dedicated Subgraphs (Ethereum, Arbitrum, BSC, Polygon, etc.)

Faq

Which chains does SushiSwap support?

SushiSwap Is Available On 38+ Different Chains -- SushiSwap has been deployed on 38+ different blockchains including but not limited to Ethereum, Arbitrum, Binance Smart Chain, Polygon, Avalanche, Base, Blast etc... (multi-chain).

How do I get support if I have issues?

Official Support Channels -- SushiSwap official support channels include Discord and Twitter (@sushiswap), also check the FAQ section at sushi.com/faq (support).

What's the difference between SushiSwap and Uniswap?

The SushiSwap community-governed fork of Uniswap v2 has the ability to have "yield farming" - which is a way for users to earn rewards for depositing assets into a pool. It also has "Onsen Incentives" that are available for SUSHI token holders. The main difference between SushiSwap and Uniswap is that SushiSwap is a multi-chain DEX, supporting 38+ blockchain networks while Uniswap is focused exclusively on Ethereum. Despite this, both platforms utilize the same Automated Market Maker (AMM) algorithm for their trading process.

Is my data secure on SushiSwap?

All user interactions on the SushiSwap platform are performed on a non-custodial basis. This means users maintain complete control over their funds at all times via their respective digital wallets. Additionally, the SushiSwap smart contracts are publicly available for review and have undergone an independent audit to ensure transparency and security. However, users should still be aware of the potential risks associated with smart contract usage inherent to all decentralized finance (DeFi) applications.

How do I connect my wallet to SushiSwap?

Users can connect to the SushiSwap application via their MetaMask wallet, WalletConnect, Coinbase Wallet, or mobile wallets such as Trust Wallet using the built-in browser within the SushiSwap app. Upon connecting a user will need to select a network to interact with. Once connected to a network, SushiSwap will automatically detect if the selected network is compatible for use with the application. If necessary, users can add supported networks manually through the SushiSwap interface.

What is SUSHI token used for?

SUSHI tokens serve as the governance and utility tokens for SushiSwap. Users who hold SUSHI and choose to stake them within the application will receive 0.05% of all trading fees generated from pools they have staked in. Holding SUSHI also allows users to participate in the SushiSwap DAO (Decentralized Autonomous Organization), and vote on proposals submitted for approval via Snapshot voting. Furthermore, SUSHI holders may be eligible to participate in Onsen incentive programs.

Are there any fees to use SushiSwap?

The total trading fee charged for each swap transaction is 0.3%. Of this total, 0.25% is paid out to liquidity pool (LP) providers and 0.05% is distributed among SUSHI token holders who have chosen to stake their tokens in the relevant pool. Additionally, users should be aware that due to varying levels of network congestion, gas fees will fluctuate depending on when the transaction occurs.

How is SushiSwap governed?

SushiSwap utilizes a community-based governance model, allowing any holder of the SUSHI token to submit proposals for changes to the platform through on-chain proposals and vote on these proposals via Snapshot voting. Users who are interested in contributing to the SushiSwap DAO governance process can do so through various channels including participating in governance discussions on the SushiSwap Forum and voting on proposed changes to the platform.

Expert Verdict

With its current volume exceeding $1 billion in daily trading activity across multiple blockchain networks (38+) and as the first community-owned fork of Uniswap, SushiSwap provides its users with access to the same core liquidity and trading capabilities found on Uniswap with additional benefits of governance and incentives. Due to its maturity, SushiSwap is well-positioned for DeFi composability, however, users should remain aware of the smart contract risks present in all decentralized exchanges (DEXes).

Experienced DeFi users familiar with the concepts of wallet security.
Liquidity Providers (LPs) looking for new multi-chain yield opportunities.
Traders requiring liquidity beyond what is available on Ethereum (EVM) and other non-EVM blockchains.
SUSHI token holders who wish to participate in SushiSwap DAO governance.

!
Use With Caution

New users unfamiliar with securing their own wallet and private key - users should expect to encounter higher levels of phishing/scam attempts.
Users unaware of how gas fees and Maximal Extractable Value (MEV) can affect transactions - unforeseen costs may result.
Expect high levels of network congestion and resulting fees during periods of heavy usage.

Not Recommended For

Users who prefer a custodial experience and/or do not feel comfortable with self-custody and private keys.
Smart Contract Risks that Risk-Averse Investors Avoid
Fiat On/Off Ramps and Beginner-Friendly User Interfaces
High-Frequency Traders – Latency Disadvantage Compared to Centralized Exchanges

Expert's Conclusion

SushiSwap is ideal for advanced DeFi users who require cross-chain liquidity and governance participation.

Best For

Experienced DeFi users familiar with the concepts of wallet security.Liquidity Providers (LPs) looking for new multi-chain yield opportunities.Traders requiring liquidity beyond what is available on Ethereum (EVM) and other non-EVM blockchains.

Research Summary

Key Findings

Multi-chain DEX (currently supporting over 38 different networks) with a very similar core functionality to Uniswap, yet governed by the SUSHI token community. Be aware that the SushiSwap team has no formal customer service channel (Discord/Twitter/community forums), as they are a decentralized community project. The SushiSwap protocol is mature, has an expansive set of API documentation, however the SushiSwap ecosystem has a significant amount of scammer activity.

Data Quality

Good - official website, documentation, and community channels provide comprehensive technical info. Customer support details confirmed via official warnings. No G2/Capterra ratings available for DeFi protocol.

Risk Factors

The inherent risk associated with all DEXes in terms of the potential for smart contract errors

The high volume of impersonation scams occurring on Telegram

Congestion on the network and fluctuating gas prices

Liquidity provider impermanent losses

No guarantees regarding how long it will take to respond to customer inquiries

Last updated: January 2026

Additional Info

Multi-Chain Coverage

Supports over 38 different networks, including Ethereum, Arbitrum, Binance Smart Chain (BSC), Polygon, Avalanche, Base, and Aptos. Due to its wide array of supported networks, it is possible to achieve the highest degree of DeFi composability relative to other major DEXes.

Governance Model

Governed entirely by the community using snapshot voting and on-chain proposal mechanisms. It is the SUSHI token holders who ultimately control which features get developed, where the treasury gets allocated and which projects are eligible to participate in the incentive programs.

Security Audits

The SushiSwap core contracts have been audited multiple times. Additionally, since SushiSwap is open-source, community members can also audit the code themselves. For well over five years now, SushiSwap has had a reputation of being resistant to major hacks resulting in core protocol loss.

Community Ecosystem

SushiSwap maintains active discussion in their Discord server, as well as a governance forum where users can discuss upcoming proposals and share knowledge through their “SushiSwap Academy”. There is no official SushiSwap Telegram presence due to a high number of impersonators.

Onsen Program

As part of SushiSwap’s incentives program, there are SUSHI emissions that are available to specific liquidity pools on various chains. Projects submit proposals for eligibility through governance to be awarded the most concentrated liquidity incentives.

Alternatives

•
Uniswap: This is the largest DeFi exchange based on total value locked (TVL) and supports v3 concentrated liquidity on Ethereum. While it has deeper pools of liquidity than many of the other exchanges on this list, it is a single chain (as well as layer 2 solutions like Optimism and Polygon). This makes it ideal for traders focused primarily on trading ETH. (uniswap.org)
•
PancakeSwap: This is the top DEX on Binance Smart Chain (BSC) and is the cheapest DEX to trade on. Similar to SushiSwap, it uses the same AMM model but is limited to only BSC. Therefore, it would be ideal for cost-conscious traders looking to avoid the gas prices associated with Ethereum. (pancakeswap.finance)
•
1inch: Routes through a combination of multiple DEXs (Sushi, etc.) to allow users to find better prices on their trades due to the ability to split orders and protect from MEV. Ideal for finding best price among all available DEX's rather than relying on one source of liquidity. (1inch.io)
•
Curve Finance: Optimizes for low slippage / stable coin trading. Capital efficient for stable coins but limits trading pairs. Ideal for stable-stable and LST trading strategies. (curve.fi)
•
Balancer: More flexible and allows for weighted pools greater than 50/50. Allows for an index fund style of LP position as well as actively managed. Best for portfolio style liquidity positions and asset baskets. (balancer.fi)