- In addition to concentrated liquidity pools, the new V3 suite introduced SushiXSwap and DEX aggregator tools.
- Tokens from both ecosystems entered the FUD that swept the broader crypto market.
Decentralized Exchange (DEX) SushiSwap [SUSHI] announced the launch of its third iteration, V3, on the Avalanche [AVAX] Network to improve the decentralized finance (DeFi) experience for traders and liquidity providers (LPs).
Read AVAX price prediction for 2023-2024
While SushiSwap has been active on the Proof-of-Stake (PoS) network for more than two years, the latest offering will bring the additional feature of concentrated liquidity pools, one of the latest innovations in the DeFi space.
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📢 We’re excited to announce the integration of Sushi’s v3 suite of products on @avax! This integration brings three powerful features to the Avalanche ecosystem: Concentrated Liquidity Pools, SushiXSwap, and our DEX Aggregator enhancing the DeFi experience for users 🚀 pic.twitter.com/UckTCQyIjY
— Sushi.com (@SushiSwap) June 7, 2023
The new synergy in the DeFi space
Aside from the added benefits of concentrated liquidity pools, SushiSwap has introduced a few other key products as part of its V3 suite integration.
New offerings included SushiXSwap, a cross-chain messaging protocol that allows users to bridge and trade tokens across multiple chains. Using SushiXSwap, users gain access to sufficient liquidity on both sides of a swap via SUSHI’s proprietary liquidity pools currently available on large L1s and rollups.
In addition, SushiSwap’s recently launched DEX aggregator would be deployed on Avalanche. This novel feature unifies the liquidity of multiple DEXs, resulting in a larger pool for users to trade.
SushiSwap V3 was created as a hard fork from Uniswap [UNI] V3 is credited with pioneering the concentrated liquidity model in the DeFi ecosystem. In March of this year, the proposal to deploy Uniswap V3 on Avalanche was approved by Uniswap DAO members.
According to data from DeFiLlama, Avalanche’s DeFi activity has been stagnant for the past few months. In fact, the total value lock (TVL) stayed in the $1.4 billion to $1.6 billion range for most of 2023.
At the time of writing, Avalanche was the 5th largest blockchain by TVL, holding $1.44 billion in assets.
A fight for both sides
Source: DeFiLlama
Likewise, Sushiswap was going through a rough patch despite its attempts to revitalize the ecosystem. The DEX saw its trading activity drop, with volumes down more than 48% over the past week.
Ever since the transcript was served with a subpoena from the US Securities and Exchange Commission (SEC), the record has gone particularly downhill.
Source: DeFiLlama
No isolation from continued turmoil
Tokens from both ecosystems entered the FUD that swept the broader crypto market. The FUD can be attributed to the SEC’s recent actions regarding centralized exchanges and altcoins.
How much are 10/1/100 SUSHIs worth today?
According to CoinMarketCap, AVAX, despite escaping regulator safety allegations, is down more than 6% week-to-date (WTD) to trade at $13.83 at the time of this writing. SUSHI, on the other hand, saw a steeper drop, with its price dropping 16%.
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