What is SushiSwap (SUSHI) Crypto Token? Clearing Up the Confusion

You might have heard of SushiSwap or "Sishi Finance" as a crypto coin, but there's no such thing as "Sishi Finance." This is a common mix-up where people misspell "Sushi" as "Sishi." Let's clear up this confusion and explain what SushiSwap really is. SushiSwap is a real decentralized exchange (DEX) built on Ethereum that lets users trade cryptocurrencies without a central authority. It's part of the DeFi movement, which aims to make finance open and accessible to everyone. If you're searching for "Sishi Finance," you're likely looking for information about SushiSwap's SUSHI token instead.

What Exactly is SushiSwap?

SushiSwap is a community-driven decentralized exchange built on the Ethereum blockchain that operates as an automated market maker (AMM). Launched in August 2020 by a pseudonymous developer known as Chef Nomi, it started as a fork of Uniswap but added unique governance features and incentive systems. Unlike traditional exchanges, SushiSwap doesn't rely on order books. Instead, it uses liquidity pools where users deposit tokens to enable trades. For example, if you want to swap ETH for USDC, you're trading against a pool of ETH and USDC held by other users.

The project faced early controversy when Chef Nomi briefly removed $13.5 million from the community treasury in September 2020. After backlash, he returned the funds, and SushiSwap transitioned to full community governance. Today, token holders vote on protocol changes through the SUSHI token. This shift made SushiSwap one of the first major DeFi projects to prove community control could work at scale.

How SushiSwap Works: Liquidity Pools and Fees

When you use SushiSwap, you interact with liquidity pools. Each pool holds two tokens (like ETH and USDC) in a specific ratio. Traders pay a 0.3% fee on every swap. Here's where it gets interesting: 0.25% of that fee goes directly to liquidity providers (LPs), while 0.05% is allocated to the SushiBar staking system. LPs earn trading fees proportional to their share of the pool. For example, if you provide 1% of the ETH-USDC pool's liquidity, you earn 1% of the fees generated by that pool.

SushiSwap also offers a feature called SushiBar. By staking SUSHI tokens, you receive xSUSHI tokens. These xSUSHI tokens appreciate in value as the 0.05% trading fee is converted to SUSHI and distributed to stakers. This creates a dual reward system-liquidity providers earn fees, and SUSHI stakers earn additional rewards. As of late 2023, SushiSwap supports over 30 blockchain networks, including Ethereum, Polygon, Fantom, and xDAI, allowing users to trade across multiple chains seamlessly.

The SUSHI Token: Governance and Rewards

The SUSHI token is the backbone of SushiSwap's ecosystem. It's an ERC-20 token on Ethereum with a fixed maximum supply of 250 million tokens. Currently, about 200 million SUSHI tokens are in circulation, with the rest expected to be fully minted by November 2023. Each new Ethereum block mints 40 SUSHI tokens. As of February 2026, SUSHI trades around $0.24 per token, down significantly from its all-time high of $2.82 in December 2021. Despite this drop, it maintains a market cap of approximately $1 billion, placing it among the top 100 cryptocurrencies globally.

Hold SUSHI tokens, and you gain voting power in the SushiSwap governance system. Proposals for protocol upgrades, fee adjustments, or new features are voted on by token holders. For instance, in 2023, the community approved the "Onsen" program, which boosts rewards for specific liquidity pools to attract more users. This governance model ensures SushiSwap evolves based on user needs rather than top-down decisions.

SushiSwap vs Uniswap: Key Differences

Uniswap remains the dominant DEX by trading volume, but SushiSwap offers more nuanced rewards for active participants. For example, while Uniswap gives all 0.3% fees to LPs, SushiSwap's 0.05% allocation to SushiBar creates additional yield opportunities. This makes SushiSwap particularly appealing for users who stake SUSHI tokens. However, Uniswap's simplicity and larger user base make it a better choice for beginners who just want to swap tokens quickly without extra steps.

Current Market Status and Performance

As of early 2026, SushiSwap processes between $100 million and $200 million in daily trading volume. Its total value locked (TVL) across all chains hovers around $1.2 billion, making it one of the top five DEXs globally. The protocol supports over 400 cryptocurrencies and 17,000+ trading pairs, though liquidity varies widely between pools. Stablecoin pools (like USDC/USDT) typically offer lower but more stable returns, while volatile token pairs (like ETH/SHIB) can yield higher APYs but carry greater impermanent loss risk.

Geographically, SushiSwap has gained strong traction in Asian markets like South Korea and Japan, where DeFi regulations are more progressive. European users also actively participate, drawn by the protocol's transparency and lack of KYC requirements. Despite this growth, SushiSwap holds only 5-7% of the overall DEX market share, with Uniswap dominating at around 50%. This competitive landscape pushes SushiSwap to continuously innovate, such as through its Kashi lending platform launched in late 2023.

Risks and Challenges for Users

Using SushiSwap comes with inherent risks. The most common is impermanent loss, which occurs when the price of assets in a liquidity pool changes significantly. For example, if you provide ETH and USDC liquidity and ETH's price doubles, you might end up with fewer tokens than if you'd just held them. This risk is higher in volatile pools and can wipe out trading fee rewards.

Smart contract risks are another concern. While SushiSwap has been audited by firms like PeckShield and OpenZeppelin, DeFi protocols remain vulnerable to exploits. In 2022, a bug in a third-party integration caused a temporary loss of $2 million in funds, though the community quickly recovered the assets. Additionally, SUSHI token volatility means staking rewards can fluctuate dramatically-sometimes dropping 15-20% in a single week during market downturns.

For beginners, the learning curve can be steep. Connecting wallets, managing gas fees on Ethereum, and understanding liquidity pool mechanics require some technical knowledge. Many users report losing money during their first attempts due to misunderstanding these concepts. Trustpilot reviews show an average 4.2/5 rating, but complaints about complex interfaces and unexpected losses are common among new users.

Getting Started with SushiSwap

Using SushiSwap is straightforward if you follow these steps:

1. Install a compatible wallet like MetaMask or Trust Wallet.
2. Buy some ETH or other tokens to fund your wallet (you'll need ETH for Ethereum gas fees).
3. Visit Sushi.com and connect your wallet.
4. For swapping tokens: Select "Swap," choose input/output tokens, and confirm the transaction.
5. For providing liquidity: Go to "Pool," select a token pair, and deposit equal values of both tokens.

Start small-never invest more than you can afford to lose. Experienced users recommend testing with under $100 on your first trade. SushiSwap's documentation portal has detailed guides, but they assume basic crypto knowledge. If you're completely new, consider watching beginner tutorials on YouTube before diving in. The community is active on Discord (over 50,000 members) and Reddit, where you can ask questions before trading.

Frequently Asked Questions