SushiSwap, the largest decentralized exchange for automated market making (AMM) (DEX), announced today that it has been expanded to include Avalanche, offering users another high-quality trading venue in Avalanche’s decentralized financial ecosystem (DeFi).
Users can do core swaps like SushiSwap on Ethereum, but with lower fees and faster transaction finalization.
Since the launch of the Avalanche-Ethereum Bridge (AEB) on February 8, 2021, the activity of smart contracts at Avalanche has boomed. Transactions increased 1,051% to over 626,000 and the number of unique wallets increased 1,752% to over 39,000.
With Avalanche, DeFi apps can be scaled and compared with conventional financial applications. Unlike other blockchain platforms, you don’t have to wait hours for your transaction to be processed. Avalanche transactions are confirmed almost immediately.
Transaction fees are also only a fraction of the cost. For traders and users of AMMs like SushiSwap, this means better margins and more time to strategize than execute.
Launched in August 2020, SushiSwap is the largest DEX in TVL’s DeFi (total value locked) with over $ 4.5 billion on its platform, according to DeFi Pulse.
At the start, SushiSwap evaluated the possibilities of Uniswap, a pioneer in the field of AMMs, and looked for several improvement points, including community governance, better liquidity incentives (via yield farming) and expanded product functions.
Avalanche + SushiSwap
At the time of writing, the average gas fee for an Ethereum transaction (which must be completed in less than 2 minutes) is ~ 220 gwei in terms of ETH (~ $ 20) *.
These costs also increase when the network becomes congested with high levels of activity, as we’ve seen throughout the DeFi boom. Gas charges cost users hundreds of dollars.
Avalanche solves this problem by making further improvements to how the platform handles smart contract fees. Smart contract transactions are a fraction of the cost (~ $ 0.70) *.
Over the past three weeks, the total value of avalanche-based AMMs has increased 169% ($ 102 million to $ 275 million). Avalanche continues to integrate more applications and tools to improve the user experience for its DeFi users.
AMMs provide users and projects with instant liquidity at a known price. This consistency is invaluable for projects that want to scale quickly. With immediate liquidity at an efficient price, more complex DeFi products can be created.
As more and more AMMs like SushiSwap want to benefit from the high performance of Avalanche, the wider DeFi ecosystem will attract increasing attention.
“We look forward to using Sushi on Avalanche as an important step towards TVL, liquidity and volume expansion,” said Joseph Delong, CTO of SushiSwap.
* The price was calculated using a contract approval function on each network. More complex contract calls increase gas charges.