Uniswap vs. Sushiswap

July 7, 2023

Which Decentralized Exchange (DEX) is better?

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Uniswap versus Sushiswap: what are their differences: market shares, securities, and more?

A detailed comparison: 🧡

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1. Market Share

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Uniswap takes up 63.7% of the market share, according to the last 7 days volume. It’s the No.1 DEX by volume. Sushiswap, on the other hand, is the No.8, taking up less than 3% of the whole market.

Uniswap

7-Day Volume: $ 8,635,251,372

24 HR Volume: $ 605,287,571

Market Share: 63.7%

DEX Ranking: #1

Sushiswap

7-Day Volume: $ 123,919,557

24 HR Volume: $ 18,038,949

Market Share: 3%

DEX Ranking: #8

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2. Users

Uniswap

Uniswap Users: 32.8 M
UNI token holders: 353,914

Sushiswap

Sushiswap Users: 1.3 M
Sushi Token Holders: 95,626

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3. Governance

One major difference between the two platforms is their approach to governance.

Uniswap has only recently started moving towards decentralized governance. It is controlled by a decentralized community of UNI token holders.

Sushiswap has implemented a community-driven governance model, allowing SUSHI holders to propose and vote on changes to the protocol.

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4. Liquidity Provider Incentives

Both platforms reward liquidity providers.

But Sushiswap takes it a step further by allowing users to stake their SUSHI tokens and earn a portion of the platform's trading fees.

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5. Token Distribution

Uniswap didn't distribute its UNI token until after Sushiswap's launch.

Sushiswap, in contrast, had a more equitable token distribution at launch, providing an opportunity for a larger number of participants to receive tokens.


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6. Protocol Fees


Uniswap, as of now, does not provide a token-staking feature, but it is potentially implementable through a governance decision.

Sushiswap implemented a 0.05% fee that goes to SUSHI holders who stake their tokens.

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Now, which is better?

It all boils down to your personal needs and investment objectives. Both platforms offer unique features that cater to different preferences. 



Let's break them down:

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1. Sushiswap has taken an innovative approach by incentivizing Liquidity Providers (LPs) with SUSHI tokens as rewards.

The platform also broadened its service range by introducing a decentralized lending platform, Bentobox, and a marketplace for Non-Fungible Tokens (NFTs), SushiNFT.

2. Uniswap has a significant advantage due to 
its larger user base and established reputation within the DeFi community.

The platform has recently introduced features 
like limit orders with the launch of Uniswap v3, 
thus improving its functionality.

3. look at the yearly Return on Investment (ROI) of the tokens:

During the bear market, Uniswap appears to have a less negative annual ROI (-40.14%) compared to Sushiswap (-68.06%), indicating better performance in terms of loss prevention.

4. If we consider their potential as investment avenues, Uniswap may present more promising long-term prospects.

Predictions suggest the SUSHI token could approach $30 by 2030. Yet, the UNI token could possibly soar even higher, reaching an estimated value of around $130.

Still, Sushiswap shouldn't be discounted, particularly for those looking to invest small amounts. Each platform has its own unique strengths, and the choice ultimately depends on your specific objectives and risk appetite.

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Smoothie’s Takeaway:

Both Uniswap and Sushiswap have their unique features and benefits, and both are instrumental in pushing the DeFi movement forward.

They represent the exciting possibilities of blockchain technology and a future where financial transactions are decentralized, transparent, and accessible to everyone.

Regardless of which platform comes out on top, the real winners are the users who now have more financial freedom than ever before.

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Sources

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