Last updated on September 21, 2022
The rise of DEXs (decentralized exchanges) has ushered in a new age of investor opportunities. These next-gen trading protocols have grown in popularity due to a variety of reasons including more privacy, cheaper transactions, and better features compared to CEXs (centralized exchanges). Among the top DEXs (decentralized exchanges) in the market are some well-known contenders worth checking out. Here is some insight into two popular options in the market, Sushiswap (SUSHI) vs META Exchange (META 1).
What is a DEX?
DEXs remove the centralized exchange from the equation and instead, they replace all functionalities with smart contracts. This structure is ideal for traders for multiple reasons. For one, it eliminates all human error from the equation. Smart contracts are advanced decentralized protocols that automatically execute upon the completion of pre-set criteria. They are a cornerstone technology in the blockchain sector.
DEXs are considered the natural evolution of the crypto exchange concept. These networks were very basic in their early days. However, there has been a steady increase in both features and platforms in the market. Today’s DEXs are light years ahead of their predecessors.
Advantages of a DEX
The rise of DEXs has created some unique earning opportunities for traders. DEXs have lower trading costs and more privacy. Both Sushiswap and the META Exchange fall in line with the open nature of the DeFi market in terms of new user onboarding. Neither network requires users to submit personal information to leverage its services.
Notably, META Exchange provides an easier process than Sushiswap because it incorporates a direct fiat-to-crypto onramp. META Exchange users can convert +50 different types of fiat currencies into META 1 stablecoins using the Onramper portal. This option saves users time and funding by eliminating the need for a third party.
Sushiswap vs META Exchange
Sushiswap and the META Exchange offer users multiple ways to increase their wealth. From a glance, these networks look very similar, but when you delve deeper, it becomes obvious what makes them different. Here’s what you need to know when deciding on Sushiswap vs META exchange.
What is Sushiswap (SUSHI)?
Sushiswap entered the market in early 2020 to eliminate problems encountered on the Uniswap exchange. The network operates as an AMM (automated market maker) designed to service the Ethereum network. AMMs are extremely popular in the DeFi sector because they help reduce slippage.
An AMM protocol doesn’t require an order book to determine the price of an asset. Instead, these networks use off-chain sensors called oracles and smart contracts to conduct trades more efficiently.
Notably, Sushiswap was launched by a group of semi-anonymous developers with Chef Nomi as the founder. This approach is very common in the crypto market, with anonymous creators being responsible for a variety of different protocols.
Interestingly, SushiSwap had a bumpy start. The network’s developer, Chef Nomi decided to rug pull the project and empty 38,000 ETH from the project’s pool.
This decision led to massive backlash from the community. Users felt wronged and rightfully so, as the maneuver tanked the price of the DEXs utility token, SUSHI.
In the end, Chef Nomi was booted from the project and replaced by Sam Bankman-Fried. However, Chef Nomi did return the ETH to the project before he stepped down, which makes this a unique story in the history of rug pulls in the market.
What is the META Exchange?
The META exchange operates as a core component of the META ecosystem. This network encompasses a variety of features designed to provide users with a plethora of ways to secure passive rewards. The exchange leverages the powerful multi-asset-backed stable coin, META 1 to ensure that users can escape volatility when needed.
Additionally, some key DeFi features make the META Exchange a potent tool in any trader’s arsenal. For one, the DEX is completely open-source. Open source networks provide another level of security to users because anyone can vet the coding. Open source networks are safer because they enable you to see the background processes of a platform to ensure that no other operations are going on that could be harmful to users.
What Problems was Sushiswap (SUSHI) Built to Alleviate?
SushiSwap was designed to provide a more community-led DEX experience to users. The developers examined how Uniswap lacked community governance and decided that this feature should be an integral part of any platform. Also, Sushiswap is the first DEX to eliminate trading fees and rely solely on a small 3% liquidity pool fee.
This approach was met with excitement from the DeFi community who embraced SushiSwap early on. Sushiswap was one of the first DEXs to provide users with a say in network upgrades. For many users, this level of transparency and inclusion is now the minimal level they can accept. In this way, Sushiswap has had a profound effect on the DeFi market.
What Problems was the META Exchange Built to Alleviate?
The META exchange was designed to provide new and experienced users with a streamlined way to trade their favorite cryptocurrencies. The network features enterprise-grade security such as non-custodial wallets and 2fa password support. The entire project was built with freedom in mind.
Fight Inflation
One of the key advantages of the META Exchange is the integration of the META 1 stablecoin. This unique multi-asset-backed token protects against volatility. The META 1 coin is decoupled from the crypto market in terms of value. As such, it’s managed to see value increases during the latest market corrections that have seen most cryptocurrencies lose +20% over the last few weeks.
Escape Volatility
This volatility has wreaked havoc on traders and once again made vendors question if cryptocurrencies are ideal for their business. The META 1 stablecoin eliminates these concerns and provides savers with a self-appreciating store of value that integrates low-risk passive income streams.
How Does Sushiswap (SUSHI) Work?
Sushiswap incorporates the best features from Uniswap, with the main differences arising in its community-oriented features and benefits. The network operates on the Ethereum blockchain and provides full interoperability within the ERC community. Additionally, the platform offers lower fees than Uniswap, the leading ERC DEX.
The Sushiswap AMM DEX is its premier feature. This network’s interface resembles Uniswap which helps new users to find all their favorite tokens easier. The DEX introduces a bunch of new features such as the Sushibar which enables users to stake Sushi and receive xSushi in return. Best of all, xSushi is a stakable token that enables you to double up on your rewards via the pool. Users can secure compound returns using this method.
Sushiswap has full DeFi support including staking and yield farming. Yield farming is similar to staking but without the lockup periods. Additionally, yield farming pools vary in their APY daily. As such, it requires you to monitor the pools to find the best deals. Both staking and yield farming provides revenue-generating opportunities to users.
How Does the META Exchange Work?
The META Exchange improves the user experience in multiple ways. The platform introduces a streamlined dashboard that puts all the top features at your fingertips. Users can trade with other crypto members from around the globe in a permissionless environment using the protocol.
The META Exchange was built to complement the rest of the METANOMICs universe. This all-inclusive DeFi ecosystem gives users access to advanced options such as staking and savings accounts. This strategy aims to provide everything needed for the average user to ditch the current financial system and all of its drawbacks.
Scalability
In terms of scalability, Sushiswap falls behind the META exchange. Sushiswap is limited by its technical characteristics. Primarily, it can only perform to Ethereum’s standards. As such, Sushiswap users have had to pay high fees for the last couple of months due to network congestion.
Ethereum users continue to pay the highest gas fees in the DeFi sector. Notably, there is some relief on the way, as Ethereum has been in the middle of its largest update ever. This upgrade will convert Ethereum to a Proof-of-Stake network. PoS networks outperform PoW networks in terms of scalability and many see this upgrade as a game-changer for the network.
The META exchange is capable of trading volume on par with the NYSE. Additionally, it’s designed to be able to scale up to meet the needs of the community as it expands. The META Exchange lives on the META blockchain, which was designed to provide high performance to Dapps and transactions.
Both platforms provide a P2P non-custodial trading experience. Non-custodial platforms are ideal for traders because they provide more privacy. Privacy should be a primary concern for all traders as there have been billions of dollars of stolen personal information sold on the darkweb recently. DEXs never hold your information, which keeps you safer.
However, META offers lower fees when compared to Sushiswap’s pool fee. Also, the META Exchange has smaller gas fees compared to Sushiswap, as Ethereum is amid massive congestion. These fees are the result of the influx of DeFi protocols using the network’s mainnet. As such, these fees will remain problematic until the network completes its V2 upgrade.
Sustainability
Sushiswap relies on Ethereum to remain valid. Currently, Ethereum is a Proof-of-Work network. PoW networks are considered the most secure, but they are not ideal in terms of scalability. Currently, Ethereum uses a massive amount of energy to remain valid.
In comparison, the META exchange has a very small carbon footprint due to its use of the DPoS consensus mechanism. This style of consensus relies on special nodes called witnesses. These community-elected nodes handle the approval of transactions and the execution of smart contracts. The community elects these nodes by delegating their tokens.
The witness receives rewards for their efforts that are split with the nodes that delegated their tokens to elect them. This approach is more democratic because it eliminates the need to purchase expensive mining rigs. It also reduces technical barriers associated with setting up and operating mining rigs.
Tokens
Sushiswap leverages a multi-token strategy to accomplish its goals in the market. SUSHI is the governance and utility token for the exchange. This ERC-20 token can be used to pay fees, pay rewards, fund pools, and stake. You need to hold SUSHI if you want to participate in the community governance of the network.
SLP Tokens are what users receive when they join a staking or farming pool on the platform. You earn trading fees and then double up on these rewards by farming your SLP tokens. Users can also earn xSUSHI in exchange for staking SUSHI tokens on the Sushibar. To mint xSUSHI tokens, you need to stake SUSHI.
META1 Coin
The META1 Coin raises the bar in terms of stability and functionality. This advanced fourth-generation stablecoin is pegged to a basket of gold-related assets. This strategy has proven to be a successful way to eliminate volatility.
META1 introduces some unique anti-manipulation systems to prevent whale dumps as well. Pump and dumps occur when a large trader, or group, runs the price of a project up quickly and then suddenly, sells off their tokens. Pumps and dumps are harmful to a project because it leaves regular traders holding the bag when the value of the token.
The system prevents whales from the start. It prevents corporations or investment firms from buying META 1 Coins. This approach ensures that the META network remains decentralized and for the people.
The developers introduced a value locking mechanism that further protects traders. All trades are cross-referenced to ensure they meet asset value. This protocol prevents dumps from whales as it places a logical bottom line on the trade value which protects all META 1 Coin holders.
Sushiswap vs META Exchange – Top DEXs at the Finish Line
After reviewing these DEXs, you can see that both of these platforms serve a vital role in the market. In terms of selection, Sushiswap has the META Exchange beat. However, META provides lower fees, scalability, and access to stablecoin assets to escape volatility. For these reasons, it’s wise to get familiar with both of these top DEXs.