Decentralised exchanges (DEXs) are one of the fastest growing primitives in the decentralised finance (DeFi) ecosystem. For DEXs, users do not relinquish custody of their assets but instead trust smart contracts when engaging in trade activities. Throughout 2020, Uniswap has taken the lion's share of overall trade volume. More recently, Sushiswap, a fork of Uniswap V2, has started to compete with Uniswap in terms of vole and liquidity.

In this report, we analyse Sushiswap’s strengthening fundamentals, valuation, as well as how the protocol may be able to differentiate itself from its main competitor over time.