SushiSwap back in the race – SushiSwapone of the iconic decentralized exchange platforms of the DeFitries to reinvent itself by deploying its version 3 on 13 networks. The protocol has recently faced cash flow problems, but this new version may well breathe new life into it.
A V3 to revitalize SushiSwap
On Thursday, May 4, SushiSwap began rolling out new concentrated liquidity pools (v3) on 13 networks. This includes Ethereum, Arbitrum, Polygon, BSC, and Avalanche to name a few.
In practice, v3 Concentrated Liquidity Pools will provide greater flexibility for traders. Additionally, they will expose liquidity providers to larger trading volumes, effectively increasing ren. Moreover, this allows better control slippage and of reduce impermanent losses. According to the SushiSwap team, these 3 liquidity pools will also allow the protocol to be « plus efficient » in terms of rewards.
Over the next few months v3 liquidity pools will be available on more than 30 channels. Thus, Sushiswap intends to pursue its vision of increasing support for cross-chain activities.
As a reminder, the concept of concentrated liquidity (concentrated liquidity) was first introduced by Unsiwap in its V3. To compare, Uniswap V3 was released over two years agoin March 2021. It is therefore difficult to say whether SushiSwap will be able to make a difference, by bringing changes that its competitors have already implemented for several years already.
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SushiSwap: Recent Issues and Remedies
It should be recalled that SushiSwap recently encountered significant cash flow problems. Despite a drastic reduction in annual expenses, the protocol has about a year and a half of reserve before seeing its coffers empty and no longer being able to finance its development.
To overcome these problems, the head chief of SushiSwap, Jared Greyabout divert the costs generated by the protocol towards the funds of Treasury. However, this move comes at the expense of SUSHI token holders and other liquidity providers.
The version 3 of SushiSwap therefore seems to bring a glimmer of hope for the protocol. Indeed, it is looking to reinvent itself and solve the cash flow problems it has recently faced.
The year 2023 will be crucial in determining whether these new initiatives will bear fruit and allow SushiSwap to regain a prominent place in the DeFi ecosystem.
At the beginning of April, SushiSwap fell victim to a hack that led to the $3.3 million loss. Subsequently, the teams announced a reimbursement plan to compensate injured users.
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