SushiSwap Deploys Concentrated Liquidity Pools
SushiSwap has launched concentrated liquidity pools across 13 different networks. The move represents the largest deployment of its v3 pools to date. This upgrade is designed to improve capital efficiency for traders and liquidity providers across the DeFi ecosystem.
- This upgrade incorporates a concentrated liquidity model, pioneered by competitor Uniswap, which allows liquidity providers (LPs) to allocate their capital within specific price ranges rather than across the entire price spectrum from zero to infinity. - By concentrating liquidity in active trading zones, LPs have the potential to earn higher fees with less capital compared to the previous v2 model. For traders, this creates deeper liquidity in specific ranges, resulting in lower slippage and better execution prices. - The initial rollout included 13 networks: Ethereum, Arbitrum, Arbitrum Nova, Polygon, Polygon zkEVM, Avalanche, BNB Chain, Fantom, Optimism, Fuse, Gnosis, Moonbeam, and Moonriver. - This move was a direct competitive response to Uniswap's v3, adopted by SushiSwap after the expiration of Uniswap's Business Source License, which had previously prevented such forks. - Future plans include expanding v3 pools to over 30 networks and introducing a "Yield Booster" rewards program for the most efficient liquidity providers on chains like Ethereum, Arbitrum, Optimism, and Polygon. - The v3 deployment is part of a broader "Super Swap" roadmap which includes an enhanced 'Route Processor' to aggregate liquidity from hundreds of sources across more than 35 blockchains for more competitive pricing. - To improve user experience, the v3 launch was accompanied by a new user interface featuring a graphical price range selector and step-by-step guidance. - SushiSwap is also developing native decentralized exchanges on other ecosystems, such as Saru on ApeChain and Wara on Solana, which will be integrated into the main Sushi ecosystem.
