SushiSwap Launches on Avalanche, Bringing Another Leading DEX to Avalanche’s Growing DeFi Ecosystem
Largest DEX by liquidity expands to Avalanche.
SushiSwap, an automated market-making (AMM) decentralized exchange (DEX), expands to Avalanche, offering users another high-quality trading venue in Avalanche’s rapidly growing decentralized finance (DeFi) ecosystem. Users can perform core swaps and liquidity mining as they do with SushiSwap on Ethereum, but with lower fees and faster transaction finality.
Since the launch of the Avalanche-Ethereum Bridge (AEB) on February 8, 2021, smart contract activity on Avalanche has boomed, with transactions have increasing by 1051% to over 626,000, and unique wallets increasing by 1,752% to top 39,000.
Avalanche enables DeFi apps to scale and perform at parity to traditional finance applications. Unlike other blockchain platforms, there’s no need to wait for hours for your transaction to settle–Avalanche transactions are confirmed near instantly. Transaction fees are also just a fraction of the cost. For traders and users of AMMs like SushiSwap, this means better margins, and more time focused on strategy, rather than execution.
SushiSwap’s Epic Rise Calls for Epic Infrastructure
Launched in August 2020, SushiSwap is the biggest DEX in DeFi by liquidity with over $4.5B on its platform, according to DeFi Pulse.
At launch, SushiSwap evaluated the opportunities of Uniswap, a pioneer in AMMs, and sought multiple points of improvement, including community governance, better liquidity incentives (via yield farming), and advanced product features. This 360-degree approach has given SushiSwap a competitive edge and is why so many people chose SushiSwap as their premiere application for trustless trading, lending, yield farming, and more.
This growth is poised to continue and even accelerate. At the time of writing, the average gas fee required for an Ethereum transaction (to be settled in less than 2 minutes) is ~220gwei in terms of ETH (~$20 US)*. These costs also spike higher as the network becomes more congested with high levels of activity, as we’ve seen throughout the DeFi boom, with gas fees costing users hundreds of dollars.
Avalanche solves this problem today, with more enhancements on the way to how the platform handles transaction fees for smart contracts. Smart contract transactions are just a fraction of the cost (~$0.70 US)*.
Cultivating the Foundations of DeFi
In the last three weeks, the total value locked within Avalanche-based AMMs has grown by 169% ($102MM to $275MM). Avalanche is continuing to integrate more applications and tools to help improve the user experience for its DeFi users.
AMMs provide users and projects with instant liquidity at a known price. This consistency becomes invaluable for projects looking to scale fast. Instant, efficiently priced liquidity allows for more complex DeFi products to emerge.
With more AMMs like SushiSwap looking to benefit from the high performance of Avalanche, the wider DeFi ecosystem will increasingly take notice.
“We look forward to our deployment of Sushi on Avalanche as an important step towards TVL, liquidity, and volume expansion,” says Joseph Delong, CTO of SushiSwap.
*Price was calculated using a contract approval function. More complex contract calls will increase gas fees.
Avalanche is an open-source platform for launching decentralized applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem. Avalanche is able to process 4,500+ transactions/second and instantly confirm transactions. Ethereum developers can quickly build on Avalanche as Solidity works out-of-the-box.
SushiSwap Launches on Avalanche, Bringing Another Leading DEX to Avalanche’s Growing DeFi Ecosystem was originally published in Avalanche on Medium, where people are continuing the conversation by highlighting and responding to this story.