Sushiswap vs Uniswap, What are the differences between these dex?

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It’s no secret that the world of decentralized exchanges has exploded in recent years. Many of you are probably wondering what the difference is between Sushiswap vs Uniswap. Let’s take a look at the key differences between these two dex.

Sushiswap is a fork of Uniswap, which means it uses the same liquidity pool model. However, there are a few key differences between the two exchanges. Let’s talk about all of that and how they play out in defi, which is something else a lot of you are probably wondering about.

Sushiswap vs Uniswap

It’s all about tokenomics

If you’re not familiar with the term, tokenomics refers to the economic model of a token or currency. In other words, it’s how the token is used and what it’s worth. This is an important consideration when choosing between Sushiswap and Uniswap because the two exchanges have different tokenomics.

On Sushiswap, the native token is called Sushi. You can use Sushi to provide liquidity to the pools, and in return, you’ll earn a portion of the trading fees. You can also stake your Sushi to earn a governance token called SUSHI. This governance token gives you a say in how the platform is run.

Uniswap, on the other hand, doesn’t have a native token. Instead, it uses an ERC20 token called UNI. UNI is distributed to users who provide liquidity to the pools or who have used the platform in the past. UNI can be used to vote on governance proposals or to claim rewards from the liquidity pool.

The difference in tokenomics means that Sushiswap is more focused on providing rewards to liquidity providers, while Uniswap is more focused on giving users a say in how the platform is run.

Different fees

Another key difference between Sushiswap and Uniswap is the fees. On Sushiswap, the maker fee is 0.25% and the taker fee is 0.3%. On Uniswap, the maker fee is 0.3%, and the taker fee is 0.4%. So, regarding fees, Sushiswap is slightly cheaper than Uniswap.

The liquidity pool

The different liquidity providers on each platform also offer different interest rates. On Sushiswap, the APY ranges from 0% to 10%, while on Uniswap, it ranges from 0.5% to 4%. So, when it comes to the interest rates offered on each platform, Sushiswap is better.

The protocol

Finally, let’s talk about the protocols. Sushiswap uses the Ethereum blockchain, while Uniswap uses the 0x protocol. The 0x protocol is a decentralized exchange protocol that allows for developing decentralized exchanges on Ethereum.

So, which one should you choose?

So, which one should you choose between Sushiswap vs Uniswap? Ultimately, it depends on your own preferences. If you’re looking for a platform that offers lower fees and higher interest rates, then Sushiswap is the better choice. However, if you’re looking for a platform that gives you more control over the platform’s governance, then Uniswap is the better choice.

No matter which one you choose, you can be sure that you’re getting a platform that’s secure, decentralized, and built on the Ethereum blockchain. So, it’s really up to you to decide which one is the better fit for your needs.

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