The decentralized finance (DeFi) project, SushiSwap, has recently expanded its reach to Avalanche, the open-source platform for launching decentralized applications in a highly scalable ecosystem.
According to a press release shared with Coinfomania, the expansion is intended to provide users with faster transaction processes at lower fees.
SushiSwap is currently the largest automated market-making (AMM) decentralized exchange (DEX) by total value locked. Since its launch in August 2020, SushiSwap has amassed a lot of users and currently has over $4.5 billion locked in the protocol, according to data from DeFi Pulse.
As a fork of the leading DeFi project, Uniswap, designed to bring multiple points of improvement, SushiSwap had provided users with advanced product features, community governance, and improved liquidity incentives through yield farming.
With these improvements, SushiSwap raked in millions of users who chose it as their premiere application for trustless trading, lending, yield farming, and many more.
However, with the fast-paced growth of the protocol came limitations. The average gas fee required for a transaction to be settled in less than two minutes on the Ethereum network is $20.
The gas fees can go even higher, with users spending hundreds of dollars on gas fees or in a few spectacular cases millions, as the network is constantly congested with high levels of activity due to the DeFi boom.
Therefore, SushiSwap needed an alternative to Ethereum that would not only improve scalability but also charge low fees.
Avalanche To The Rescue
Avalanche provides the solution to the problem of both scalability and high transaction fees. Smart contract transactions carried out on the platform are just a fraction of the cost, approximately $0.70.
The Avalanche-Ethereum Bridge (AEB), which was launched earlier in February 2021, has more than doubled the rate of smart contract activities on the Avalanche platform.
The open-source platform allows DeFi apps to function equally with several other traditional financial apps. It processes transactions as quickly as possible, all for a meagre transaction fee.
Therefore, SushiSwap users can have better margins and “more time focused on strategy, rather than execution.”
Speaking on the expansion, SushiSwap’s CTO, Joseph Delong, said, ” We look forward to our deployment of Sushi on Avalanche as an important step towards TVL, liquidity, and volume expansion.”
Affiliate: Get a Ledger Nano X for $119 So That Hackers Won't Steal Your Crypto!