Introduction

When it comes to Decentralized Exchanges (DEXs) built on the Ethereum (ETH) blockchain, Uniswap (UNI) and SushiSwap (SUSHI) are two major contenders. They are the two main DEXs within the Decentralized Finance (DeFi) space. DEXs enable users to exchange their assets without substituting the detention of their assets to other parties, thereby preventing the security problems of centralized trades. In addition, DEXs empower better privacy due to the scarcity of Know Your Customer (KYC) confirmation.

What is Uniswap?

Uniswap is a leading decentralized crypto exchange in the crypto realm that operates on the Ethereum blockchain. Uniswap works for the public good, unlike most exchanges intended to charge trading fees. This is an excellent tool for members to easily exchange tokens without paying any platform fees or dealing with negotiators.

The Ethereum blockchain was employed to construct the Uniswap medium in 2018. This has become the world’s second-largest cryptocurrency project by market capitalization. They are making it compatible with all ERC-20 tokens and wallet services like MetaMask and MyEtherWallet. Uniswap is also completely open-source, meaning anyone can copy the code to create their decentralized exchange. This allows users to list free tokens on the exchange. Regular centralized exchanges are profit-driven and charge a hefty fee to trade in a list of new coins, so this is a significant difference.

Trading in Uniswap Tokens (UNI) allows ==crypto-holders== to participate in the governance of this finance protocol as they enter to explore the place of decentralized finance. ==Ethereum== uses blockchain for financial transactions, independent of central financial intermediaries, such as exchanges or centralized online wallets. 

What is Sushiswap?

Sushi is the original token of Sushi Swap. This is an ERC-20 token distributed to liquidity providers on Sushi Swap through Liquidity Mining. The maximum amount for SUSHI tokens is 250 million. The block rate determines sushi supply. It will be rendered at the rate of 100 tokens per block by November 2021, and its ongoing supply has already achieved around 50% of the entire supply of 127 million tokens.

Like ==Uniswap,== Sushi Swap is built on an Automated Market Maker ==(AMM)== system that uses the smart contracts mentioned above to complete transactions. Other users provide tokens through the liquidity pool. Other Sushi Swap users lock their funds into this pool in token pairs, which provide the funds needed to complete the swap. Those users are then awarded by a process called income farming – a little percentage of the payments generated by the trade.

Beyond Token Swaps, Sushi Swap offers other ==Defi== features, such as the ability to add SUSHI coins and rewards to the network and take part in credit services and buy newly-offered Token ==Defi== startups through its ==MISO== service.

The network clearly mentioned in its roadmap how it plans to have L1 governed defect proofs by 2024. Optimism’s design process is based on long-term sustainability rather than enhancing shortcuts.

To achieve this, it uses optimistic rollup. It also leverages Ethereum’s consensus process to scale the network. Blocks are created and executed on L2 (Optimism), while user transactions are batch-processed and transmitted to L1 (Ethereum).

Another thing to note is that there is no mempool in L2. All transactions are either processed or rejected immediately. The Ethereum consensus process ensures a pleasant user experience while ensuring security. Link

Arbitrum is an optimistic rollup which is a type of Ethereum layer two scaling solution. And because Arbitrum also depends on Ethereum for security, the two networks are very closely linked. \n

In the next section we’ll provide a simplified explanation of how Arbitrum works. However, to really understand it you’re going to need a full pot of coffee and a couple of hours of study. Arbitrum is a complex protocol that’s been in development for several years, it isn’t a rickety DeFi project that got slapped together over a Red Bull-fueled weekend.

At its core, Ethereum is a decentralized global software platform powered by blockchain technology. It is most commonly known for its native cryptocurrency, ether, or ETH.

Ethereum can be used by anyone to create any secured digital technology. It has a token designed for use in the blockchain network, but it can also be used by participants as a method to pay for work done on the blockchain.

Ethereum is the world’s second-largest crypto project by market capitalization and was the first to introduce smart contract functionality to the industry

Source::

analysis

                                                                                                                                                                           **(Uniswap** )

                           **optimism                                                                                                                                                        arbitrum                                                                                                                polygon**

description

Uniswap does not attach to the traditional engineering of advanced trading and operates without an order book. It utilizes the constant product, market maker. This approach is a variant of the AMM ( Automated Market Maker prototype). AMMs are smart contracts that hold liquidity pools or reserves that dealers can exchange in trades. These pools are subsidized by LPs (Liquidity Providers).

Anyone who lends the same amount of two tokens in the pool is eligible to become a liquidity provider. As a result, the merchant pool has to pay some taxes. This tax is then passed to liquidity providers depending on their pool share. These tokens can be either two ERC-20 or one ETH token. This pool usually consists of stable coins such as USDC, DAI, or USDT. LPs can reclaim this liquidity token based on their contribution to the pool. LPs can reclaim this liquidity token based on their contribution to the pool.

                                                                                                                                                                              **(sushiswap)**

                                  **optimism                                                                                                                          arbitrum                                                                                                                                                polygon**

description

SushiSwap is a hard fork of Uniswap, with community-focused features while keeping the original design of its parent. Unfortunately, instead of turning its path, the protocol is meant to milk its parent’s liquidity.

 On its first day of existence, it took $250 million worth of fish from Uniswap. Three days later, it acquired nearly 80 percent liquidity.

 The ecosystem working is split into two stages; The first stage involves traders carrying liquidity pool tokens from Uniswap and accepting SUSHI in return. Afterward, traders transfer the stake tokens and use them on the SushiSwap Decentralized Exchange (DEX).On Uniswap, liquidity providers earn from trading fees generated on the network. Smaller liquidity providers are at risk of being eclipsed by massive cryptocurrency exchanges, mining pools, and other wealthy providers.

 But, its spinoff makes it better by providing more incentives. Here, the liquidity providers are awarded by SUSHI tokens. Providers gain a portion of the fees generated by the trade even after they provide liquidity

Conclusion

Uniswap comes up with three fee tiers that are 0.05%, 0.3%, and 1%. The fee tiers represent the chance that liquidity suppliers are willing to require in keeping with the expected volatility of their pools. For example, stablecoin pairs could charge a 0.05% fee, common pairs such as ETH/USDT may accept 0.3%, and pairs with newer tokens may charge a 1% fee. The Uniswap protocol divides the expenses proportionately among all existing liquidity providers. On the other hand, SushiSwap charges a flat 0.3 % fee for all business teams, dish token holders obtain 0.05%, and liquidity providers get 0.25%.

 As discussed earlier, Uniswap once distributed some of its UNI tokens through liquidity mining as incentives for liquidity suppliers. The liquidity mining program was transient, and therefore the platform interrupted the program someday when launched as planned. Then the Uniswap grants program, users had no other thanks to earning new UNI tokens since this first token distribution. Hayden Adams, the Uniswap creator, declared that liquidity mining would come back to the platform before long, but Uniswap has to convey a political candidate date. On the other hand, SushiSwap’s liquidity mining continues to be online. Liquidity providers earn dish governance tokens unendingly by staking them in pools to produce liquidity.

 Uniswap introduced a theory known as “concentrated liquidity,” where liquidity suppliers will concentrate their tokens inside custom value ranges. As a result, liquidity providers provide more significant liquidity at a particular price range, thereby forming personalized price curves. The enormous liquidity at a selected commercialism pair’s expected price range permits users to create larger swaps. SushiSwap doesn’t have this feature and has not declared any plans to include this idea into its platform.

Methodology

> I have used

> optimism.sushi.ez_swaps > > arbitrum.sushi.ez_swaps > > polygon.sushi.ez_swaps

> to get the charts, tables and data above.

address contract ::

> # ('0x68b3465833fb72a70ecdf485e0e4c7bd8665fc45','0xe592427a0aece92de3edee1f18e0157c05861564')

Analyzer

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