Summary: The best overall decentralized exchange is the Uniswap DEX. The Uniswap (V3) protocol is the most efficient automated market maker in DeFi with the lowest fees and tightest spreads.
- Largest Decentralized Exchange (DEX) by trading volume, liquidity and protocol revenue
- Available across multiple chains including Ethereum, Arbitrum, Optimism and Polygon
- New features including Uniswap V3 (concentrated liquidity) and the Uniswap NFT Marketplace
Uniswap and Sushiswap Comparison
The debate between Uniswap and Sushiswap has been a hot topic in the world of decentralized exchanges (DEXs). Uniswap, the leading DEX on Ethereum, has seen a lot of success since its launch in 2018. Sushiswap, on the other hand, is a newer entrant to the space and has quickly become a popular choice for many users.
What is Uniswap?
Uniswap is a protocol for DEXes that allows users to swap ERC20 tokens without the need for a centralized exchange. Uniswap was launched in November 2018 and is the oldest and most popular DEX on Ethereum. Uniswap is also the most used DEX in terms of volume, with over $2 billion worth of ETH traded in the past 24 hours.
- Uniswap is a non-custodial DEX built on Ethereum, Polygon and Optimism that allows users to trade ERC20 tokens.
- They use an automated liquidity protocol that pools together tokens from multiple users and creates a "liquidity pool".
- Uniswap does not require users to create an account, making it a popular choice for those who value privacy. All trades can be completed through a Web 3 wallet like Coinbase Wallet.
- The Uni DEX charges a 0.1% fee on all trades.
- Uniswap V3 is their latest release and is the most efficient AMM in the world.
Sushiswap is a fork of Uniswap that was launched in September 2020. Sushiswap introduces several new features and improvements over Uniswap, including staking rewards, improved liquidity, and lower fees. Sushiswap also has its own native token, sushi (SUSHI), which is used to pay fees and earn rewards.
- Sushiswap is a non-custodial DEX built on Ethereum, Fantom, Avalanche, Optimism, Arbitrum and 10 other chains that allow users to trade ERC20 tokens.
- Their platform uses a similar automated liquidity protocol to Uniswap, but also allows users to "stake" their LP tokens to earn extra rewards. This feature is called Kashi Lending.
- Sushiswap charges a 0.2% fee on all trades.
- They have just released SushiXSwap which makes it the first DEX that allows for cross-chain swaps and trades all in one user interface.
Differences Between UNI and SUSHI
When comparing Uniswap vs Sushiswap, there are a few key differences to consider:
- Uniswap is a decentralized protocol that allows users to trade Ethereum-based (ERC20) tokens. It uses smart contracts to automate the process of exchanging tokens. Uniswap does not require any sign-ups or order book deposits.
- Sushiswap is a fork of Uniswap that introduces several new features, including liquidity mining, staking, and governance. Sushiswap also allows users to trade a wider range of assets, including Bitcoin and other cryptocurrencies.
- Uniswap V3 charges a 0.1% fee on all trades, while Sushiswap charges a 0.25% fee. However, Sushiswap also offers a liquidity mining program that rewards users for providing liquidity to the protocol paid out in SUSHI tokens.
- Uniswap is managed by a team of developers, while Sushiswap is managed by the community. Sushiswap has a decentralized governance model that allows anyone to submit proposals and vote on them.
- Uniswap was launched in November 2018, while Sushiswap was launched in September 2020.
Overall, Uniswap is the best overall decentralized exchange. The Uniswap (V3) protocol is the most efficient automated market maker in DeFi with the lowest fees and tightest spreads.
Both Uniswap and Sushiswap are great options for those looking to trade cryptocurrencies without the need for a centralized exchange. While Uniswap is the more established protocol, Sushiswap offers some new features that could be attractive to users. Ultimately, it's up to each individual user to decide which platform best fits their needs. Regardless of which one you choose, always be sure to do your research and understand the risks associated with trading on decentralized exchanges.