04 Mar 2021 Samantha McLauren
SushiSwap Runs On Five Different Chains
Uniswap’s hard fork chain – SushiSwap, which started its life with a rollercoaster ride of price pumps and dumps, as well as centralization concerns, is now making a move towards being more viable for small-scale swaps and transactions.
SushiSwap’s CTO Joseph Delong announced that the automated market maker is going to be operational on several blockchains, apart from Ethereum’s. The list of supported chains now includes Fantom, Binance, OxPolygon, XDAIchain, and MoonbeamNetwork. Delong also noted that SushiSwap is preparing for deployment on Optimism’s Layer 2 platform.
“The industry is currently trending towards bridges and multichain deployments as a middle step before L2 to mitigate high gas costs,” Delong added.
Meanwhile, Solana-based Raydium decentralized exchange also called for a SushiSwap port, with a code name “Bonsai”.
Sushi supporters consider the news to be a key to combat the ever-increasing transaction costs on Ethereum’s blockchain, due to the deployment of complex smart contracts. For instance, a single ERC-20 transfer is costing users an average of $8 per transaction and $25 for a swap, according to Etherscan.io.
Sushi announced that token trading and liquidity provision functionalities on Fantom were launched on March 4, with operations being carried out via wallet providers, such as MetaMask. Swaps on the Fantom custom network are executed almost instantly, while the transaction costs are minimal. Furthermore, users can provide liquidity in exchange for a 0,25% reward from all trades on the given trading pair, proportional to the share of the liquidity provision.
Fantom in essence is a modular, high-performance smart contract platform, designed for scalability. Its open-source SDK, dubbed “Fantom Virtual Machine” is at the core of porting existing Ethereum-based dApps to work on Fantom’s blockchain.
However, the news that SushiSwap is going multichain, didn’t affect its price much. SushiSwap’s native SUSHI token, dipped 5% to trade at $17.64, as of press time. The price retreated from SUSHI’s all-time high of $20.54, which occurred on March 2, 2021. SUSHI’s market capitalization remained above $2 billion, to clock in at $2.24 billion.
Meanwhile, the total value locked (TVL) in SushiSwap decreased slightly from its $3.72 billion high to a level of $3.32 billion.Blockchain Blockchain Development Blockchain Application decentralization decentralized Defi Decentralized Finance Sushiswap interoperability cross-chain