Crypto News: SushiSwap Launches V3 Concentrated Liquidity Pools Across 13 Networks in Bid to Boost Capital Efficiency
SushiSwap, the decentralized exchange, has launched its V3 concentrated liquidity pools across 13 different networks, in a bid to increase capital efficiency. The move marks the largest deployment of these types of pools to date, according to a statement from the exchange.
The new pools have been designed to enable liquidity providers to concentrate their funds in a narrower price range. This should help to reduce the spread between buy and sell orders, lower slippage for traders, and facilitate more accurate trade execution.
Ultimately, these changes should increase trading volume and improve liquidity, leading to higher profits for LPs.SushiSwap has plans to roll out support for 30 more concentrated liquidity networks in the coming weeks, using a “two-phase” approach.
In phase one, marked by the recent launch, SushiSwap will also deploy its exchange to zero-knowledge rollups, a layer-2 scaling solution for blockchain networks.
This is expected to increase throughput and reduce transaction costs. In phase two, SushiSwap will introduce a rewards program for the most efficient LPs, allowing them to earn the exchange’s native token, SUSHI.
The rewards program will initially launch on Ethereum, Arbitrum, Optimism, and Polygon, with plans to expand to more chains as they are added.
SushiSwap’s move is part of a wider effort to revamp its tokenomics and boost user confidence. The exchange recently adopted rival Uniswap’s latest automated market maker module to further “scale growth” and improve capital efficiency. This came after an exploit in April in which a bug in the exchange’s Route Processor 2 saw its smart contract drained for $3.3 million.
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