Cross-Chain DEX Sushi Gets 28% User Surge
Leading decentralized exchange Sushi is getting a lift in users as it continues to add more protocols to its multi-chain platform. The DEX originally launched on Ethereum in 2020, and now operates across a total of 14 chains including BSC, Harmony, Polygon, OKXChain, and Avalanche, as it continues to evade gas fees, expand its footprint, and attract more users.
The need for a platform such as Sushi to go cross-chain is simple. Gas fees have made it impossible for some users to interact with certain ERC-tokens. Sushi noticed this and decided to go multi-chain in order to escape Ethereum fees and allow smaller traders to interact with the platform.
At the time of writing Sushi has seen a 27.83% surge in active wallets interacting with the platform across all chains. Taking that figure up to just over 54,000 active wallets in the last seven days. Pushing the total value locked to over $4.42 billion and Sushi to 16th position in the overall DappRadar dapp rankings.
Bridge to success
Users wishing to interact with networks outside Ethereum can simply bridge their current assets across using the various methods available. For example, bring ETH over from your Metamask Ethereum wallet to your Metamask Polygon wallet. Importantly, the bridge is two-way and users can simply send back anything they don’t use.
Users that do this avoid paying Ethereum gas fees and still get their hands on the tokens they want. To give more context, making a simple swap on UniSwap can cost up to $80 in fees right now. On Polygon or BSC for example the same transaction will be a fraction of the cost. Something that has become very important this year as waves of new investors flooded into crypto with smaller pots to play with. Paying $100 on a $200 investment, for example, is not sustainable, or sensible.
Moreover, it means users can find many of the rewards and opportunities presented in DeFi across multiple chains all in one place, on Sushi. A strategy that appears to be working very nicely for the platform as it continues to grow. At the time of writing the native SUSHI token has increased by over 1500% in the last 12 months.
Sushi is served
Sushi was born at the height of the Summer of DeFi. Forking UniSwap’s core design and adding community earning and governance features. With Sushi, users can provide liquidity into a pool and earn rewards in the form of SUSHI tokens. However, unlike Uniswap, those SUSHI tokens also entitle users to continue to earn a portion of the protocol’s fee, accumulated in SUSHI, even if they decide to no longer participate in the liquidity provision.
To jump-start the project, Sushi effectively siphoned out users and liquidity from UniSwap by offering enhanced incentives to liquidity providers (LPs) – a controversial process known as a “vampire attack”. Despite the controversy, It was a successful tactic and saw over 90% of the liquidity of some UniSwap pools transferred to Sushi.
Sushi also has plans to nurture dapp ecosystems and generally enhance the overall DeFi landscape for users. A recent partnership announcement with the Celo network further demonstrated that. Celo and Sushi announced $12.6M in initial joint liquidity mining rewards in both CELO and SUSHI. Combining Celo’s mobile-first and user-friendly focus with Sushi’s DeFi expertise and suite of products. With the bigger aim to increase access to DeFi services for those that need it most.
Sushi is attempting to build much-needed bridges between DeFi on different blockchains. Bringing all the services under one roof for the ease of the user. Allowing them to explore multiple chains, token ecosystems, and find opportunities.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds positions in ETH, BTC, NIOX, AGIX, MATIC, MANA, SAFEMOON, SDAO, CAKE, HEX, LINK, GRT, CRO, OMI, GO, SHIBA INU, AND OCEAN.