YouHodler Now Supports SushiSwap (SUSHI)
We are beyond pleased to announce the arrival of SushiSwap (SUSHI) to the YouHodler platform. Clients can now use SUSHI for the following:
- Crypto backed loans (with LTV up to 90%)
- Savings accounts (7% APR + compounding interest)
- Multi HODL
- Universal crypto/fiat/stablecoin conversion.
SUSHI is the second token this week to join the YouHodler family of over 26 coins, tokens and stablecoins. Here's some more information about the newest addition.
What is SushiSwap (SUSHI)?
SushiSwap is an automated market maker (AMM). It’s one of the most well-known tools in the DeFi space for users to quickly swap tokens at a low cost. Before we explain what an automated market maker is, let’s first understand why we need one.
Before automated market makers, users who didn’t want to use a centralized exchange could only exchange their tokens using a decentralized exchange (DEX). However, few users using decentralized exchanges means that many trading pairs have little to no liquidity. It’s a big problem when you want to close a trade quickly, but nobody can match your order.
For instance, you’ve made a 10% profit from your LSK trade, but there’s only a single user that can match 25% of your trade at a much higher price than the price on a centralized exchange. As you can see, you’ll end up paying much higher prices to exchange your tokens. We call this price slippage due to low liquidity. For that reason, most decentralized exchanges only offer popular trading pairs to guarantee sufficient liquidity. This solution is not ideal for users who want to trade more ‘exotic’ tokens.
What are Automated Market Makers (AMM)?
Automated market makers provide guaranteed liquidity at every price level without relying on the mechanic of buyers and sellers creating liquidity. The pricing algorithm x * y = k, where k is a fixed constant, determines assets’ prices. This means that the pool’s total liquidity always remains the same, but the price of asset x and y vary depending on user trading.
Automated market makers allow users to create new trading pairs with guaranteed liquidity. Therefore, it’s also a popular tool for launching tokens for a new project. This type of project launch is called an Initial DEX Offering (IDO). SushiSwap became popular as it’s a fork of the well-known Uniswap project, which is also an automated market maker. SUSHI holders receive a 0.3% cut of the transaction’s fees occurring on the platform. On top of that, you gain governance rights over the project when holding SUSHI tokens.
Unlock the value of your SUSHI token on YouHodler now!
Don't just HODL your SUSHI. Put it work! Between the 7% APR on our savings accounts and utility with other features like Classic Loans, Turbocharge and Multi HODL, there is no reason to sit passively with your SUSHI. Regardless of market conditions, there are ways to make your SUSHI work for and YouHodler has all the tools you need. So head on over to our mobile or web app to get started on your journey to become an active HODLer.