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The largest automated market-making (AMM) DEX, SushiSwap has announced on launching in Avalanche blockchain’s DeFi ecosystem. Users can now perform core swaps as they do with SushiSwap on Ethereum, but with lower fees and faster transaction. Developers at Ava Labs believe that bringing the largest DEX by total value locked on Ethereum can help Avalanche grow its DeFi offerings and compete against Ethereum.
Avalanche Welcomes SushiSwap DEX
In the past three weeks, the total value locked within Avalanche-based automated market-making has grown by 169% from $102MM to $275MM.
So delicious news. 😋 @SushiSwap on Avalanche.https://t.co/cxNZrG3VEc#Sushiswap #Avalanche #AVAX #SUSHI @avalancheavax
— Scientia ∀ (@scientiaax) March 16, 2021
Joseph Delong, CTO of SushiSwap, said:
“We look forward to our deployment of Sushi on Avalanche as an important step towards TVL, liquidity, and volume expansion.”
At the time of writing, the average gas fee required for an Ethereum transaction is 220gwei in terms of ETH or approx. $20.
The costs become subsequently higher as the Ethereum network becomes more and more congested with higher levels of activity with gas fees costing users hundreds of dollars.
Avalanche solves this problem, with more features on the way for how the platform handles fees for smart contracts. Smart contract transactions cost a fraction in comparison to Ethereum with only less than $0.70.
However, the CTO of SushiSwap did highlight that the intention isn’t to pull users from Ethereum but to tap into new user segments:
“Ethereum and Avalanche can together turn DeFi from a niche community to a legitimate competitor with the world of traditional financial services.”
SushiSwap DEX Doesn’t Have a Launch Date Yet
Avalanche enables DeFi apps to scale and perform. Unlike other blockchain platforms, users need not have to wait for hours for transactions to settle as Avalanche transactions are confirmed near instantly.
SushiSwap started out as the clone of Uniswap but has since evolved and grown to surpass the DEX in terms of the total value locked into the platform. Launched in August 2020, SushiSwap is the biggest DEX in DeFi by TVL with over $4.5 billion on its platform.
Meanwhile, users aren’t necessarily swapping Ethereum for Avalanche as the new DEX doesn’t have a launch date yet.