SushiSwap is a decentralized exchange (DEX) using the Ethereum blockchain. So what is SushiSwap good for and how does Coinmarketcap Liquidity Metric work. If you do not know yet, let’s take a look at the article below.
What is SushiSwap good for?
SushiSwap enables users to swap, earn, lend and borrow tokens, accumulate returns and leverage funds. Decentralized exchanges (DEXs) create automated liquidity pools that allow users to exchange any Ethereum-based cryptocurrency token for another token.
How Does Coinmarketcap Liquidity Metric Work?
Coinmarketcap's new liquidity metrics are order distance from mid-price (best bid + best ask/2), order size (larger orders indicate higher liquidity) and relative asset liquidity (the system also adapts) and Not just a measure of order book depth (buy and sell orders and their sizes). Calculations are performed by retrieving data from market pairs at random intervals within a 24-hour period and then averaging them, which ensures that the system is not manipulated.
I hope you will now understand what is SushiSwap good for and how does Coinmarketcap Liquidity Metric work. Coinmarketcap’s new metrics make it harder for exchanges to provide fake data to manipulate traders and investors. As most exchanges realize that such fake trades or volume inflation tactics won’t work, they will be forced to report real numbers.
