Sushi is a decentralized-finance protocol that offers token swaps through smart-contract liquidity pools. A user trades from a connected wallet, so there is no exchange account holding the assets during the swap.
The route determines execution
A swap may pass through one or more pools. Available liquidity, pool fees, price impact, slippage tolerance, gas costs, and token taxes can all affect the final amount received.
Price impact grows as a trade consumes liquidity
A large order relative to the pool can receive a materially worse average price than the initial quote.
Verify the network and token contract
Similar names and symbols can identify unrelated tokens. Users should confirm the application URL, connected network, contract address, approval amount, and transaction preview before signing.
A swap may require a token approval first
The approval and the swap are separate transactions; each should be checked before signing.
Sources
Educational information, not investment advice.