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SushiSwap is a decentralized exchange (DEX) based on the Ethereum blockchain that utilizes an Automated Market Maker (AMM) system rather than a traditional order book. It was created as a fork of Uniswap, with the goal of improving upon the original platform by introducing a different fee structure and providing additional rewards to users who stake their tokens.

As an AMM, SushiSwap automates trading liquidity between any two cryptocurrency assets. Transactions are conducted peer-to-peer, directly between traders, with the price determined by the ratio of the two assets being traded. Unlike traditional exchanges, SushiSwap does not rely on matching individual buy and sell orders, but instead allows users to pool assets together and trade them.

The platform's token, SUSHI, is an Ethereum cryptocurrency that is tied to the SushiSwap DEX. SUSHI holders can participate in community governance and stake their tokens to earn a portion of SushiSwap's transaction fees. SUSHI is created at a rate of 100 tokens per block, with the first 100,000 blocks having a block reward of 1,000 SUSHI.

SushiSwap was founded in 2020 by Chef Nomi and Maki. It started as a basic fork of Uniswap, but quickly made a name for itself with its unique features, such as liquidity pools, which allow users to lock their crypto in exchange for rewards, and the SushiBar, which enables users to stake their SUSHI in exchange for its passive yield-bearing xSUSHI token.

However, in September 2020, the project hit a major roadblock when its founder, Chef Nomi, emptied the development fund, swapping it for 37,400 Ether, which was valued around $14 million at the time. This caused SUSHI's price to drop by more than 70% in less than a day. Faced with community pressure, Chef Nomi handed over the private key to the SushiSwap smart contract to FTX CEO Sam Bankman-Fried the next day.

Following this incident, the community swiftly developed explicit guidelines for ownership and management of the protocol to ensure that the project could move ahead in a sustainable manner.

Today, SushiSwap is widely used in the decentralized finance (DeFi) ecosystem, offering users a wide range of options to generate passive income with limited risk. The platform's community governance mechanism allows users to vote on all critical upgrades, protocol modifications, and which projects get a financial boost.

SushiSwap's DEX platform is non-custodial, which means that users are responsible for their individual cryptocurrency wallets. This ensures that users retain full control over their assets at all times.

In summary, SushiSwap is a decentralized exchange built on the Ethereum blockchain that utilizes an Automated Market Maker system and offers a unique set of features such as liquidity pools, SushiBar, and community governance. The platform is widely used in the DeFi ecosystem and allows users to generate passive income with limited risk.