- In addition to concentrated liquidity pools, the new V3 suite introduced SushiXSwap and DEX aggregation tools.
- Tokens from both ecosystems remained trapped in the FUD and took over the broader crypto market.
Decentralized Exchange (DEX) SushiSwap [SUSHI] announced the release of its third iteration, V3, in Avalanche [AVAX] Network to improve the decentralized finance (DeFi) experience for traders and liquidity providers (LPs).
Read AVAX Price Prediction 2023-2024
While SushiSwap has been active on the Proof-of-Stake (PoS) network for over two years, the latest offering will bring the additional feature of concentrated liquidity pools, one of the latest innovations in the DeFi space.
📢 We’re excited to announce the integration of Sushi’s v3 suite of products into @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
In addition to the added benefits of concentrated liquidity pools, SushiSwap has introduced a few other key products as part of its V3 suite integration.
SushiXSwap, a cross-chain messaging protocol that allows users to pool and trade tokens across multiple chains, was one of the new offerings. By 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.
Also, the DEX aggregator recently launched by SushiSwap would be implemented on Avalanche. This novel feature unifies the liquidity of multiple DEXes, 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 this year, the proposal to implement Uniswap V3 on Avalanche was forwarded 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 range of $1.4 billion to $1.6 billion for most of 2023.
At the time of writing, Avalanche was the 5th largest blockchain in terms of TVL with $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.
Since the record received a subpoena from the US Securities and Exchange Commission (SEC), the record has gone particularly downhill.
Source: DeFiLlama
No isolation from sustained excitement
Tokens from both ecosystems remained trapped in the FUD and took over the broader crypto market. The FUD can be traced to the SEC’s recent actions on centralized exchanges and altcoins.
How much is 1.10.100 SUSHI worth today?
According to CoinMarketCap, despite escaping the regulator’s safety fee, AVAX is down more than 6% in a week (WTD) and is trading at $13.83 at the time of this writing. SUSHI, on the other hand, saw a steeper drop, with its price dropping 16%.
Source: ambcrypto.com
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