- Apart from concentrated liquidity pools, the new V3 suite introduced SushiXSwap and DEX aggregator tools.
- Tokens of both the ecosystem were caught in the FUD gripping the broader crypto market.
Decentralized exchange (DEX) SushiSwap [SUSHI] announced the launch of its third iteration, V3, on the Avalanche [AVAX] network, in a bid to enhance the decentralized finance (DeFi) experience for traders and liquidity providers (LPs).
While SushiSwap has been operational on the proof-of-stake (PoS) network for more than two years, the latest offering will bring the added feature of concentrated liquidity pools, one of the latest innovations in the DeFi space.
📢 We are thrilled to announce the integration of Sushi’s v3 suite of products on @avax! This integration brings a trio of 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 DeFi space
Apart from the added benefit of concentrated liquidity pools, SushiSwap introduced some other major products as part of its V3 suite integration.
SushiXSwap, a cross-chain messaging protocol which lets users bridge and trade tokens across multiple chains, was among the new offerings. Using SushiXSwap, users get access to sufficient liquidity on both sides of a swap through SUSHI’s own liquidity pools, currently available on major L1s and rollups.
In addition, SushiSwap’s recently launched DEX aggregator would be deployed on Avalanche. This novel feature unifies liquidity from multiple DEXs, resulting in a larger pool for users to trade.
SushiSwap V3 was created as a hard fork of Uniswap [UNI] V3, which is credited as the pioneer of the concentrated liquidity model in the DeFi ecosystem. In March earlier this year, the proposal to deploy Uniswap V3 on Avalanche was given a go-ahead by Uniswap DAO members.
Avalanche’s DeFi activity over the last few months has stagnated according to data from DeFiLlama. Infact, the total value locked (TVL) has been stuck in the $1.4 billion – $1.6 billion range for most of 2023.
At the time of writing, Avalanche was the fifth-largest blockchain in terms of TVL, holding assets worth $1.44 billion.
A struggle for both parties
Source: DeFiLlama
Similarly, Sushiswap was going through a rough phase despite its attempts to energize the ecosystem. The DEX saw a decline in its trading activity, with volumes over the last week dropping by more than 48%.
Things have gone particularly downhill for the protocol ever since it was served with a subpoena by the U.S. Securities and Exchanges Commission (SEC).
Source: DeFiLlama
No insulation from ongoing turnmoil
Tokens of both the ecosystem were caught in the FUD gripping the broader crypto market. The FUD can be attributed to SEC’s recent actions on centralized exchanges and altcoins.
AVAX, despite escaping the regulator’s security accusation, dropped more than 6% on a week-to-date (WTD) basis, trading at $13.83 as of this writing, as per CoinMarketCap. SUSHI, on the other hand, saw a steeper decline with a 16% drop in price.
This article originally appeared here.
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