SushiSwap and AVAX Relationship
How is the SushiSwap AVAX relationship going since they partnered last year?
Avalanche network is an open smart contract platform that has emerged as an efficient Ethereum competitor. Many innovative decentralised apps are now opting for it to benefit from its ecosystem. Avalanche already has some big projects like Trader Joe DEX, AAVE, Lydia Finance, and Curve, to name a few.
But the most impactful name among them has been SushiSwap. The SushiSwap AVAX hook up was, and is, big news.
In March 2021, Sushiswap and Avax network partnered up to bring a decentralised exchange on a faster and more economical platform. It has helped both platforms to expand their services to the crypto community.
Let's learn how these platforms have been progressing since the SushiSwap AVAX union.
,Journey of SushiSwap on the AVAX network
Sushi is an Automated Market-Making (AMM) DEX introduced in 2020. It allows trading tokens in a frictionless manner. The exchange is a UniSwap’s fork which has evolved into one of the biggest exchanges in DeFi. Besides, it supports most Ethereum L2 solutions and L1 blockchains, including Avalanche.
The DEX became a part of AVAX’s Rush incentive program in 2021. It enabled the platform to build a liquidity incentives fund for mining. Moreover, SushiSwap on AVAX blockchain gained the multi-chain feature. Also, the diverse non-Ethereum ecosystem of Avalanche further boosted its token’s value.
Beyond that, a breakthrough project for SushiSwap AVAX has been Penguin Finance. It is the first yield farm from SushiSwap on the AVAX blockchain. The customers can get better yields for PEFI, AVAX, iPEFI, and SUSHI tokens through it. It uses Sushiswap's LP tokens for generating yields.
This DApp offers various financial products, including its own collection of NFTs. These leverage Avalanche’s low fees and speedy transactions and promote mass crypto adoption.
Does Avalanche benefit from the SushiSwap launch?
Avalanche has also benefited from the Sushi launch on its network. Including an exchange that focuses on DeFi traders attracted more similar projects to the network. Among them, DEXs like Multichain, Plasma Finance, ADA Finance, Coin98, and Trader Joe are a few examples.
Moreover, data from DeFillama suggest that it is the fourth largest chain in DeFi. Currently, the total value locked on the chain is $1.58b. Though its TVL is lower than Ethereum, Tron, and Binance, it makes up around 2.87% of the entire industry. It gives Avalanche an edge over other L1 blockchains like Solana.
Besides, as more innovative projects enter its ecosystem, it has introduced a bridging feature. Firstly, it was introduced for Ethereum, but has expanded to the Bitcoin bridge. It may also include several other tokens in the future, increasing the interoperability for the developers as well as crypto users.
Author: Wasay Ali
Wasay Ali is a versatile professional writer with global experience and a background in mechanical engineering and social science. He is adept at crafting news and informational content for the crypto space and has experience writing for other niches. He is a professional SEO content writer who has worked with several digital marketing agencies and clients in the US, UK, Pakistan, and Europe. He is a dedicated volunteer and enjoys reading, writing, poetry, and going to the gym. He is an INFJ-A personality type dedicated to positively impacting the world. Wasay has a passion for writing as it allows him to express his creativity, share his knowledge, and connect with people worldwide.