SushiSwap is a Decentralized Finance (DeFi) liquidity provision platform that aims to be an evolution of Uniswap.
Initially, to encourage liquidity provision, liquidity providers can earn SUSHI tokens by staking Uniswap Liquidity Pool (LP) tokens in an initial set of available pools.
Once token swaps are enabled, 0.25% of all trading fees in any pool are proportionately distributed to active liquidity providers, while 0.05% get converted back to SUSHI (through SushiSwap) and distributed to SUSHI token holders.
Staking SUSHI-ETH LP tokens on the SushiSwap platform also accords stakers SUSHIPOWAH, which are voting rights that allows SUSHI token holders to vote on governance proposals to shape the SushiSwap platform.