The SushiSwap decentralized exchange will deploy its smart contracts on the Avalanche blockchain to expand the Decentralized Finance (DeFi) ecosystem.
Given the high demand for decentralized finance (DeFi) products, the Ethereum network is struggling to keep up with the workload. This led to an increase in transaction fees. Nevertheless, Ethereum provides a powerful foundation for the development of DeFi. Therefore, the developers of Ava Labs believe that integration with one of the largest decentralized exchanges will help expand their DeFi offerings and allow them to compete with Ethereum.
In the fall, Ava Labs launched the Avalanche blockchain mainnet to surpass the as-yet-to-be Ethereum 2.0 with higher bandwidth and faster node-to-node consensus. In addition, a “bridge” was created last month between the Avalanche and Ethereum blockchains, with which DeFi users can move cryptoassets between the two networks.
Unlike centralized exchanges, decentralized exchanges do not store user assets. Instead, they use smart contracts to optimize peer-to-peer trading. To start trading on a DEX like SushiSwap, users will need ETH, the “common currency” of the DeFi protocols on the Ethereum blockchain. AVAX coins will be used to make transactions and pay commissions, which will increase the liquidity of the network and the value of AVAX.
Ava Labs President John Wu said Avalanche represents an additional ecosystem for DeFi users who are literally being driven out of the market by high gas charges. This situation will encourage users to take a closer look at Avalanche-powered applications and take advantage of the evolving DeFi space. The president of Ava Labs clarified that SushiSwap’s integration with Avalanche is not intended to “lure” users away from Ethereum. In contrast, Ethereum and Avalanche must join forces to transform DeFi from a niche product to a peer-to-peer competitor to traditional financial services. Deploying SushiSwap smart contracts on the Avalanche blockchain will be another step towards this goal.
Recently, the developers of SushiSwap announced that the platform’s smart contracts were launched on five new blockchains at once: Moonbeam Network, Binance Smart Chain, Polygon, Fantom, and on the Ethereum xDai sidechain. In the future, it is planned to use the Optimism and Solana blockchains.
More details at Bits.media: https://bits.media/birzha-sushiswap-zapustit-smart-kontrakty-na-blokcheyne-avalanche/
