Introduction to SushiSwap
SushiSwap is a decentralized exchange (DEX) built on Ethereum and several other blockchains, originally forked from Uniswap but enhanced with extra features like yield farming, staking, and lending. (Kashi + BentoBox announcement) The platform allows users to swap tokens (spot trading), provide liquidity, and (historically) engage in lending and margin trading through its Kashi module. However, note that the Kashi lending and margin functions have been deprecated or disabled in the user interface as part of SushiSwap’s updates. :contentReference[oaicite:0]{index=0}
How Spot Trading Works on SushiSwap
Spot trading is the core feature: you exchange one token for another directly, using SushiSwap’s automated market maker (AMM) pools. You select a trading pair (e.g. ETH/USDC), input how much you want to swap (or receive), and the DEX calculates the route (with fees and slippage) before you confirm.
- Connect your Ethereum wallet (MetaMask, WalletConnect, etc.) via the official SushiSwap app or interface.
- Select the tokens to swap, set slippage tolerance and gas limit.
- Review the estimated trade: route path, price impact, and minimum output.
- Confirm the transaction in your wallet and wait for blockchain confirmation.
- After execution, the swapped token is deposited into your wallet.
SushiSwap also shows multiple routing options if liquidity spans various pools. The fee structure on many pools is 0.25% of the trade, which is distributed to liquidity providers. :contentReference[oaicite:1]{index=1}
Margin & Lending (Kashi) — What You Should Know
SushiSwap introduced the Kashi lending and margin trading module built on BentoBox vaults. Users could lend assets, borrow against collateral, and take leveraged positions. :contentReference[oaicite:2]{index=2} However, the Kashi lending & margin features have been deprecated in the UI, and new deposits/borrows are disabled. :contentReference[oaicite:3]{index=3}
That means while the code may still be on chain, users cannot reliably access those features via the official application. Reports even show growing bad debt in Kashi from unresolved defaults. :contentReference[oaicite:4]{index=4}
Other SushiSwap Features to Explore
- Yield Farming & Liquidity Provision: Provide token pairs into pools, earn trading fees + extra SUSHI rewards (via Onsen). :contentReference[oaicite:5]{index=5}
- Staking SUSHI (xSUSHI): Lock SUSHI to get xSUSHI, which entitles you to a share of platform fees.
- BentoBox Vaults: Token vaults used to optimize yield strategies across dApps (though Kashi is decoupled). :contentReference[oaicite:6]{index=6}
- Cross‑chain / multi-chain support: SushiSwap operates on Ethereum and several layer 2 / sidechains to reduce costs and expand reach.
Tips for Beginners
- Start with small amounts to learn slippage, gas costs, and timing.
- Always double-check the URL and domain to avoid phishing versions.
- Monitor gas prices and avoid trading during network congestion.
- Use slippage tolerances conservatively (e.g. 0.5–1%) to prevent loss from front-running.
- When providing liquidity, understand impermanent loss risks and ensure the pair is relatively stable.
Frequently Asked Questions (FAQs)
- Is SushiSwap safe to use?
- SushiSwap is non‑custodial—the smart contracts handle funds, not the platform. While audited, DeFi always carries risks, so use caution and test with small funds.
- Can I still lend or borrow using SushiSwap?
- No, the Kashi lending and margin features have been deprecated and are disabled in the user interface. :contentReference[oaicite:7]{index=7}
- Do I need to hold SUSHI to trade?
- No, you don’t need SUSHI to do swaps. SUSHI is mainly for governance, staking, and liquidity incentives.
- What are liquidity provider (LP) tokens?
- When you provide a pair (e.g. ETH/USDC), you receive LP tokens representing your share. Revenues (trading fees) are distributed to LPs proportionally.
- How do I stake SUSHI / get xSUSHI?
- Stake SUSHI in the SushiBar to receive xSUSHI. xSUSHI holders receive a portion of platform trading fees automatically over time.
Conclusion
For beginners wanting to trade crypto, SushiSwap provides a robust and user-friendly interface for spot swaps across multiple chains. While the margin and lending module (Kashi) is no longer actively supported in the front end, the core swap, liquidity, and staking functionalities remain. Start small, understand how slippage and liquidity work, and always use official links (e.g. sushi.com) to avoid scams. As you grow more confident, providing liquidity or staking can add passive income opportunities. Happy trading!