SushiSwap is an open source exchange that manages yield farming and token swaps by using the use of an Automated Market Maker (AMM) smart contract. Based on Ethereum this exchange is a more advanced version of the Sushiswap Protocol as well as a second DEX using the same AMM system.
The exchange financially encourages liquidity providers to add tokens on the platform by offering them fees. Particularly, they get rewarded for the expenses that other traders have to pay to make token swaps.
For reporting price changes, SushiSwap utilizes a number of decentralized oracles. The list includes SushiSwap’s TWAP oracle as well as Compound’s Open Price feed, as well as oracles built by Chainlink. Additionally, arbitrageurs help in delivering precise prices’ by minimizing price variations across every trading pair.