Decentralized Exchange (DEX) SushiSwap switched to Arbitrum's Layer 2 Scaling platform in its latest effort to avoid Ethereum's expensive network fees (quotation ETH in real time).
The move was tweeted by lead developer “0xMaki” on May 31, although there were no other details besides the word “distributed”.
SushiSwap has already distanced itself from Ethereum with a multi-chain roadmap that included rollout on Binance Smart Chain, Polygon, Fantom and Moonbeam.
Also on May 31, SushiSwap CTO Joseph Delong reported that the DEX has been deployed on the Elysium platform.
Arbitrum on mainnet
Arbitrum launched on the mainnet on May 28 announcing another Layer 2 option for Ethereum developers. It is the first true Layer 2 with full EVM (Ethereum Virtual Machine) compatibility, which makes it easy for developers to directly implement DeFi apps.
Over 250 teams applied for developer launch access according to Offchain Labs in a recent blog post. The team added that they have labeled the main network chain, Arbitrum One explaining that Arbitrum is the technology and Arbitrum One is its flagship L2 chain.
Arbitrum uses optimistic rollups, which attempt to remove the need for zero-knowledge proofs by changing the consensus mechanism. Instead of verifying every transaction, the network assumes that all are correct, only letting users step in if they see an incorrect transaction. This allows the chain to reduce rates by more than 50 times for most workloads.
The system will operate at a “conservative rate limit” for the first two months to allow the team to respond to security events and ensure that user funds remain safe at all times.
As reported on May 27, Uniswap governance voted for the implementation on Arbitrum as it beat Optimistic Ethereum in the mainnet launch.
SushiSwap currently has a total locked-in value of around $ 3 billion according to DeFi Pulse, which places it behind Uniswap, which has just over double that.
However, SushiSwap led the Layer 2 race, but that wasn't enough to wrest users and cash from its rival. The Polygon Level 2 Aggregator topped them both on the DeFi Pulse TVL charts with nearly $ 7 billion locked in.
At the time of writing, SUSHI was trading at $ 10,25, down 2% on the day according to CoinGecko. The DEX token is currently 56% lower than its all-time high of $ 13 on March 23,38.
Its decline has been the same as that which has occurred in recent weeks for all or almost all cryptocurrencies. A collapse that many tie to the moment when Tesla took a step back from his position on bitcoin. And what do you think of all this? Can cryptocurrencies be subject to such volatility?