SushiSwap DEX launches v3 liquidity pools on 13 chains, touts cheapest swaps at maximum capital-efficiency
|- SushiSwap launched v3 liquidity pools on 13 chains beginning Wednesday, May 4.
- The launch will expose liquidity providers to larger trading volumes and liquidity while reducing exposure to financial risks.
- The move could enable trading and liquidity enhancement across networks.
SushiSwap decentralized exchange (DEX) started rolling out new liquidity pools (LP) across 13 networks on May 4, a development set to enable inter-network trading and liquidity provision. Version (v) 3 concentrated LPs will feature on popular chains such as Ethereum, Arbitrum, Polygon, Avalanche, and Binance Smart Chain (BSC), among others.
Concentrated Liquidity, everywhere.
— Sushi.com (@SushiSwap) May 4, 2023
Capital Efficiency, anywhere.
We have launched Sushi’s concentrated liquidity pools on 13 networks with more coming #soon. This launch marks the largest deployment of v3 pools, ever.
: https://t.co/NXW8QjFAkB
: https://t.co/nJoKLALNZ7 pic.twitter.com/E8RdeyQff7
Concentrated Liquidity, everywhere.
— Sushi.com (@SushiSwap) May 4, 2023
Capital Efficiency, anywhere.
We have launched Sushi’s concentrated liquidity pools on 13 networks with more coming #soon. This launch marks the largest deployment of v3 pools, ever.
: https://t.co/NXW8QjFAkB
: https://t.co/nJoKLALNZ7 pic.twitter.com/E8RdeyQff7
Also Read: DEX vs. Liquid Staking battle eases as Ethereum Shanghai upgrade hype fades
SushiSwap’s version 3 liquidity pools
SushiSwap business development lead, Alex Shefrin, said the version 3 liquidity pools were part of the DEX’s plans to expose liquidity providers to more trading volumes and liquidity. He also added that it is geared toward risk reduction. The pools are tailored to ensure traders enjoy more flexibility. In his words:
Ultimately, [traders] are able to better control what their slippage tolerance is, [and] what their overall kind of view on certain assets are.
Further, Shefrin noted that the v3 LPs will also aid in improving the efficiency of the protocol on metrics of rewards.
Notably, from as early as the next several months, the v3 liquidity pools will become available on over 30 chains. This would increase support for cross-chain activity as a crucial part of the team’s vision for the future of SushiSwap DEX. Citing Shefrin:
We are building this engine block that basically allows you to go from 'asset a' on 'chain a' to 'asset b' on 'chain b’
The relationship, according to Shefrin, would be a kind of 'bring your own blockchain type of relationship that we want users to have.”
Besides the v3 LPs, the SushiSwap ecosystem is also rolling out Tines, presenting a smart-contract system offering users the cheapest swaps with maximum capital inefficiency. Noteworthy, this launch was in line with protocol’s new route processor.
Furthermore, we're proud to introduce innovative routing through Tines + a new route processor (RouteProcessor3) to unify liquidity across all of Sushi by enabling pools of all types to interact with each other, effectively creating a large pool of liquidity to trade against..
— Sushi.com (@SushiSwap) May 4, 2023
Furthermore, we're proud to introduce innovative routing through Tines + a new route processor (RouteProcessor3) to unify liquidity across all of Sushi by enabling pools of all types to interact with each other, effectively creating a large pool of liquidity to trade against..
— Sushi.com (@SushiSwap) May 4, 2023
Tines will develop the most cost-efficient route for a swap to take based on the current conditions, before executing the swap that has the lowest price impact. The design ensures users get the cheapest swaps possible with maximum capital-efficiency.
Launch phases as SushiSwap increases adoption of concentrated LPs across the DeFi space
According to SushiSwap, the move is the ecosystem’s first foray towards increasing the adoption of concentrated liquidity across the decentralized finance (DeFi) space. The network also added that they had split the launch into two distinct phases that will be rolled out over the next couple of weeks. Phase one is done and dusted.
Phase 1️⃣:
— Sushi.com (@SushiSwap) May 4, 2023
Rollout of v3 across 13 networks and more coming very soon, ultimately covering all of the chains Sushi is live on. Additionally, we're planning to deploy our full DEX to even more zero-knowledge rollups in the near future.
Phase 1️⃣:
— Sushi.com (@SushiSwap) May 4, 2023
Rollout of v3 across 13 networks and more coming very soon, ultimately covering all of the chains Sushi is live on. Additionally, we're planning to deploy our full DEX to even more zero-knowledge rollups in the near future.
As regards the second phase, the protocol would introduce a special rewards program for the most efficient LPs. This will be under the Sushi v3 Yield Booster Program, where LPs are eligible to get rewarded with additional SUSHI.
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