Even after a few weeks of copycat projects, scams, and the Yam protocol fiasco it looks like the DeFi craze is far from over. The new decentralized exchange protocol Sushiswap, which incentivizes use through a new token, locked up over $250 million of value within just 24 hours.
Oh and did we mention it is unaudited?
Although the launch just happened a few days ago on the 28th August, the protocol quickly locked up over $250 million worth of Ethereum, stablecoins and other assets. Worryingly, the contracts have not gone through a security audit! Seemingly showing just how crazy yield farmers are in their quest of chasing DeFi rewards.
To keep it simple… Sushiswap will evolve into an Automated Market Making protocol clone of the popular Uniswap. However, the key difference is that Sushiswap has its own token. Aptly named SUSHI, the coin is an incentive for liquidity providers to migrate from Uniswap to SushiSwap. Also, SUSHI provides holders with dividends: 0.05% of every transaction made via the exchange.
- Pseudonymous developer Chef Nomi is the project’s creator. However, SushiSwap has an in-built governance function so the protocol will not be centrally controlled.
Looking to the future… leading smart contract auditor QuantStamp has confirmed to be working on an audit right now. Keep your eyes peeled for their updates, as the results will undoubtedly spell out the doom or success of Sushiswap.