Key highlights:
- SushiSwap, a fork of Uniswap, is very popular among DeFi users and even has a higher TVL than Uniswap
- SushiSwap is now also coming to the Avalanche ecosystem to offer lower fees, faster transactions, and some other benefits
SushiSwap is now also available on the Avalanche blockchain
Interest in DeFi has grown significantly in recent months, and this has contributed to the congestion on the Ethereum blockchain. DeFi users on Ethereum are now paying high transaction costs, which has resulted in a lot of criticism and users looking for alternative DeFi platforms. SushiSwap, an automated market maker protocol, says that they will be launching their service on the Avalanche blockchain in addition to Ethereum.
SushiSwap started as practically a clone of Uniswap that introduced a governance called SUSHI. This attracted users who were interested in yield farming, and the total value locked in SushiSwap is currently larger than on Uniswap. SushiSwap is a decentralized protocol, where users can swap between different tokens directly on the blockchain or earn an income by providing liquidity to pools.
When using SushiSwap on the Avalanche ecosystem, users need AVAX tokens rather than ETH for their transactions. Avalanche is building out its DeFi ecosystem, and it facilitates faster transactions and lower fees for DeFi users. DeFi is primarily centered around Ethereum at the moment, but its expansion to other blockchains will provide new options to users. This is especially important since currently, Ethereum users have to pay hundreds of dollars in transaction fees in some cases.
Thanks to Avalanche’s recently-launched Ethereum bridge, the Avalanche blockchain saw a boost in activity, with transactions and unique wallets increasing rapidly.
According to DeFi Pulse SushiSwap is the largest decentralized exchange by total value locked. SushiSwap has managed to distinguish itself from Uniswap through its governance model and user incentives. Therefore, many users have selected SushiSwap, and the exchange has experienced rapid growth.
Now, users who aren’t prepared to pay the high fees on Ethereum can consider using the popular decentralized exchange on Avalanche instead.
Moving forward, the DeFi ecosystem on Avalanche could continue growing thanks to the platform’s low transaction fees and quick transaction finality. Will SushiSwap’s expansion to Avalanche turn out to be a smart decision?
