SushiSwap Ethereum DEX Review: Pros, Cons, and Is It Worth It in 2025?

When you think of trading crypto without a middleman, most people jump to Uniswap. But there’s another player that started as a fork of Uniswap and turned into something bigger: SushiSwap. Launched in August 2020, it didn’t just copy the code-it rewrote the rules. And by 2025, it’s still standing, even after drama, leadership changes, and a crowded DeFi field. So is SushiSwap still worth your time on Ethereum-or should you walk away?

What Exactly Is SushiSwap?

SushiSwap is a decentralized exchange (DEX) built on Ethereum. That means no company owns it, no bank holds your money, and no customer service line can help if you mess up. Instead, you trade directly through smart contracts using liquidity pools. If you’ve ever swapped ETH for a new token without using Coinbase or Binance, you’ve used a DEX like this.

Unlike centralized exchanges, SushiSwap doesn’t keep your crypto. You connect your wallet-MetaMask, Coinbase Wallet, or any Web3 wallet-and trade on your terms. The whole thing runs on open-source code, and anyone can see how it works. It’s not just trading, though. SushiSwap lets you earn by providing liquidity, staking SUSHI tokens, and even voting on future changes.

The name? It’s a joke. Chef Nomi, the anonymous founder, themed everything around Japanese restaurants. Liquidity pools are called “BentoBox.” Loans are “Kashi.” You’re not just trading crypto-you’re ordering sushi. It’s quirky, but it works. For new users overwhelmed by terms like “automated market maker,” this makes the whole thing feel less like a lab experiment and more like something you can actually use.

How SushiSwap Works on Ethereum

At its core, SushiSwap uses an Automated Market Maker (AMM) model. Instead of buyers and sellers matching orders, you trade against pools of tokens locked in smart contracts. If you want to swap DAI for UNI, you’re not finding someone else who wants to trade. You’re taking from a pool that others have funded.

Here’s how it breaks down:

1. You connect your Ethereum wallet.
2. You pick two tokens to trade (like ETH and SUSHI).
3. The smart contract calculates the price based on how much of each token is in the pool.
4. You pay a 0.25% fee per trade-most of which goes back to liquidity providers.

That 0.25% fee is lower than Uniswap’s 0.3%, but here’s the catch: SushiSwap gives 0.05% of that fee to SUSHI token holders as rewards. So if you hold SUSHI and stake it, you get paid just for being there. That’s the big draw.

But Ethereum isn’t cheap. Gas fees can spike to $10-$50 per swap during busy times. That’s why most active users now trade on SushiSwap’s versions on Arbitrum, BNB Chain, or Polygon. On Ethereum? You’re paying for the security, not the speed.

The SUSHI Token: More Than Just a Coin

The SUSHI token isn’t just a currency. It’s the engine behind the whole platform. There are 250 million SUSHI tokens total, and they’re used for three things:

• Governance: Holders vote on upgrades, fee changes, and new features. One token = one vote.
• Staking rewards: Lock SUSHI in the SushiBar and earn more SUSHI (currently around 2-4% APY, depending on pool activity).
• Fee sharing: Stake SUSHI to get a cut of the 0.05% trading fee revenue from all pools.

As of late 2025, SUSHI trades around $0.52. That’s down from its all-time high of $23 in 2020, but it’s still holding value better than most DeFi tokens that crashed after the 2022 bear market. Why? Because it’s not just a speculative asset-it’s a utility token with real income streams.

But here’s the problem: governance is still centralized. Only nine people control voting rights, and five can change the smart contracts. That’s not fully decentralized. If something goes wrong, you’re relying on a small group to fix it. That’s a red flag for purists-but a practical reality for most users.

Why People Use SushiSwap (And Why They Don’t)

Let’s cut through the hype. Here’s what users actually say about SushiSwap in 2025.

Pros

• Earn while you trade: If you provide liquidity, you get paid in fees and SUSHI rewards. Some pools offer 10-20% APY, though that comes with risk.
• Multi-chain access: You can use SushiSwap on Ethereum, Arbitrum, BNB Chain, Polygon, and more. That’s rare for a DEX that started on Ethereum.
• Beginner-friendly: The sushi theme, clear interface, and built-in guides make it easier than most DeFi platforms. Even if you don’t know what “impermanent loss” means, you can still swap tokens.
• Community-driven: No CEO. No corporate board. Decisions are made by token holders-even if it’s a small group.

Cons

• Ethereum is slow and expensive: Swapping on mainnet can cost $20+ in gas. Use a Layer 2 chain instead.
• Lower fees than Uniswap: SushiSwap takes less in trading fees, so liquidity providers earn less than they would on Uniswap V3.
• Impermanent loss is real: If the price of your paired tokens moves too much, you lose money-even if the token price goes up. This isn’t a bug. It’s how AMMs work.
• History of drama: Chef Nomi vanished with $14 million in 2020. Sam Bankman-Fried took over briefly before handing control to the community. Trust is still fragile for some.

SushiSwap vs. Uniswap: The Real Difference

People always compare SushiSwap to Uniswap. But they’re not the same. Here’s how they stack up in 2025:

Uniswap has more liquidity, more users, and more trust. But SushiSwap gives you a way to earn extra on top of your trades. If you’re active in DeFi and want to stack SUSHI, it’s worth it. If you just want to swap ETH for WBTC with the lowest slippage? Uniswap still wins.

Who Should Use SushiSwap?

Not everyone should use SushiSwap. Here’s who it’s actually for:

• New DeFi users: The sushi theme and simple interface make it one of the friendliest DEXs for beginners.
• Liquidity providers: If you’re willing to lock up ETH and a stablecoin, you can earn more than on Uniswap thanks to SUSHI rewards.
• Multi-chain traders: If you jump between chains, SushiSwap’s presence on Arbitrum, Polygon, and BNB Chain saves you from switching platforms.
• Community believers: If you care about decentralized governance-even if imperfect-you’ll appreciate that no single entity controls it.

Who should avoid it?

• Those who hate gas fees: Stick to Layer 2s or centralized exchanges if you can’t handle Ethereum’s costs.
• People scared of volatility: If you don’t understand impermanent loss, don’t provide liquidity.
• Security maximalists: The governance is still too centralized for your taste. Uniswap’s is too, but at least it’s had fewer scandals.

How to Get Started (Step-by-Step)

Ready to try it? Here’s how to use SushiSwap safely:

1. Get a wallet: Install MetaMask or Coinbase Wallet. Fund it with ETH for gas.
2. Go to sushi.com: Never type it manually. Bookmark it. Scammers have fake sites.
3. Connect your wallet: Click “Connect Wallet” and pick your wallet.
4. Choose your chain: On the top right, pick Ethereum, Arbitrum, or BNB Chain. For beginners, use Arbitrum-it’s faster and cheaper.
5. Swap tokens: Pick the tokens you want to trade. Confirm the price and fee. Sign the transaction.
6. Optional: Stake SUSHI: Go to the “Earn” tab, lock your SUSHI in SushiBar, and start earning rewards.

Pro tip: Always check the token address before swapping. Scammers create fake tokens with names like “ETH” or “USDC.” Look for the verified contract address on Etherscan.

Final Verdict: Still Relevant in 2025?

SushiSwap isn’t the biggest DEX. It’s not the fastest. And it’s not the most secure. But it’s one of the few that turned a chaotic start into something lasting. It’s not perfect, but it’s not dead either.

Its real strength? It gave users a reason to stick around beyond just trading. The SUSHI token, the rewards, the community-it turned passive users into participants. Even with $400 million in total value locked, that’s less than 5% of Uniswap’s. But it’s still growing on Layer 2s. And it’s still one of the few DEXs that actually tries to make DeFi feel human.

If you’re new to decentralized trading, SushiSwap is one of the best places to start. If you’re already deep in DeFi, it’s a smart tool to have in your toolbox-especially if you want to earn extra from your liquidity.

Just don’t expect miracles. It’s not a get-rich-quick scheme. It’s a tool. And like any tool, it’s only as good as how you use it.