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SushiSwap is a decentralized finance platform on the Ethereum blockchain. It acts as an automated market maker, which means it routinely creates markets for trading currency pairs whether there previously was one or not. 

Currently, there are about 16,000 trading pairs. Users can set limit orders which allows them to buy or sell crypto assets at a predetermined price in addition to market orders when using the SushiSwap platform.

SushiSwap’s Origin Story

SushiSwap resulted from a fork in the UniSwap protocol in August 2020. A fork occurs when the community has conflicting views on the governance structure of a protocol. 

SushiSwap was created to incentivize liquidity providers through rewards, which previously had not been implemented on UniSwap. It uses the same code as UniSwap but offers a separate set of rules. After a difficult period where liquidity was extracted from the fork, the migration was championed by Sam Bankman-Fried of FTX.

What Is SushiSwap Used For?

In addition to trading and swapping assets, SushiSwap lets users engage in:

Yield generation — also known as yield farming — through BentoBox
Lending and borrowing through Kashi
Liquidity Pools

How Does BentoBox on SushiSwap Work?

BentoBox — also known as Bento — is a vault for storing crypto assets where users can earn a return. Typically, crypto assets are lent to others through decentralized finance protocols such as Compound, which engages in short-term loans. Yield farming can earn users more value received in tokens. However, the underlying price can still go down while waiting for returns.

How Does Kashi on SushiSwap Work?

Lending and borrowing are done through Kashi, a feature built on top of Bento. Purchasers can provide collateral through any token, stablecoin or synthetic asset. If there isn’t a market for a trading pair, Kashi will make it. This is what differentiates it from other crypto lending markets.