Uniswap and SushiSwap have become the two largest decentralized exchanges (DEX) currently driving the DeFi market.

Despite its controversial start for SushiSwap, it has caught up with Uniswap in recent months in terms of platform activity, total value locked, and SUSHI reference code price.

A recent report from Delphi Digital looked at the two projects in detail and revealed fundamental differences in how each deviated in the aftermath of SushiSwap’s vampire attack on Uniswap.

SushiSwap was originally forked from Uniswap v2 with the inclusion of the ruling token SUSHI, which was distributed to the community.

At the time, Uniswap had not yet released the UNI token, which was subsequently sent to users who interacted with the protocol by trading or offering liquidity.

While UNI was due to be launched at some point, many saw this unexpected drop as a proposal to halt a potential vampire attack that would drain cash from Uniswap to SushiSwap.

After a bumpy start when SushiSwap co-founder, Chef Noomi, tossed all SUSHI tokens into the market for $ 14 million in Ether (ETH) to later return the money to the treasury, SushiSwap co-founder, 0xMaki, took over. The project helped him correct the course and became a viable competitor among DeFi platforms.

When it comes to comparing the original distribution tokens, 65% of original UNI supplies were distributed to the community through liquidity operations and a management-controlled treasury, compared to 80% of all SUSHI tokens.

As such, the SushiSwap platform has become a socially controlled and self-financed venture, with 9% of all SUSHI sent from a dedicated locker system. On the other hand, Uniswap received approximately $ 12 million in venture capital support raised from various sources to fund future development.

Sushi Swap is more decentralized than Uniswap
The differences in the development path began immediately after the fork and resulted in two different platforms offering different experiences. The hype continues around Uniswap v3, although few insiders know exactly what the new version will entail.

While users and token holders trust the major developers who have created a great interface so far, many in the cryptocurrency space prefer projects with greater openness and community participation.

As such, SushiSwap is more committed to the social ethics of cryptocurrencies with a core development team being more transparent about what is happening and where the project will go in the future.

SushiSwap has also created an effective management system that allows community members to have a say in important decisions. The Uniswap management system is less conducive to community participation, which may be a result of the issuance of the UNI token and a desire to build a solid foundation prior to community management integration.

Differences in value proposition and community participation
In recent months, the Uniswap team has focused on developing version 3. As Delphi Digital noted, the advantages of the first supplier, Uniswap, gave the platform many integrations as projects were approached across the sector for the provided liquidity.

On the one hand, SushiSwap has been interested in establishing links with new and upcoming DeFi platforms, especially the yEarn ecosystem, which includes yarn, Cream, Pickle, Cover and Alpha. This will help expand the use of SushiSwap’s liquidity offerings and help make the platform more resilient to future challenges.

Recently, SushiSwap has begun to stimulate liquidity in long-term assets as it appears to have established itself as a place to reach for projects with long-term viability. On the other hand, Uniswap has been a vehicle for new projects to gain a head start in terms of liquidity and social impact.

One of the most important differences between the two platforms relates to the generation of cash flow.

In March 2021, the UNI community will be able to transfer 0.05% of all platform fees to Uniswap Treasury, which is controlled by UNI code. The committees will go to the treasury and the UNI token holders will be able to vote on what to do with this money in the future.

SushiSwap has been taxed at 0.05% since its inception in September 2020, and the board has agreed to use the proceeds to purchase SUSHI directly and distribute it to members, providing a direct source of income.

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