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SushiSwap utilizes a decentralized trading method known as an automated market maker (AMM). Unlike traditional exchanges, which require an order book and intermediary for trading, SushiSwap’s AMM makes the entire process peer-to-peer. AMMs, like the one used by SushiSwap, don’t need an intermediary or order book because trades are with liquidity pools – funds of a particular token, deposited by users, that utilize smart contracts to provide liquidity for trades.
