Sushi Goes Live on Blast, Revolutionizing DeFi with Layer 2 Yield Innovation

Spread the love

Sushi expanded to Layer 2 of Ethereum, launching on Blast to offer users improved earning opportunities and reduced gas fees.

Sushi, a revered decentralized exchange (DEX) that was at the heart of Ethereum’s DeFi evolution, is now live on Blast, an innovative layer 2 solution that offers native profitability on the Ethereum blockchain. This development represents a significant leap for Sushi, known for its pioneering expansion into more than 30 blockchain networks, in its quest to redefine the decentralized exchange experience for users.

Introducing Blast: Yield-Generating Layer 2

Blast stands out as the first Layer 2 platform to integrate native yield generation, offering users the unique advantage of automatic compounding balances. This yield is derived from two main sources: ETH staking and Real Assets (RWA) protocols. By passing the profitability of these decentralized protocols back to users, Blast ensures that the benefits are directly available to the community.

The synergy of Sushi and Blast

With the Blast integration, Sushi introduces its innovative Automated Market Maker (AMM) versions 2 and 3, facilitating seamless token swaps and liquidity provision. V3 AMM, in particular, introduces concentrated liquidity, promising to improve returns for liquidity providers.

Sushi-Blast integration highlights

Yield Generation: Blast yield is derived from ETH and RWA staking protocols, with sushi pool deposits automatically accumulating this yield.

Yield distribution: Merkle distribution ensures that V3 liquidity providers receive their share of yield, with a solution for V2 in the pipeline.

Improved Liquidity Access: The Sushi Swap API, a Route Processor 4 (RP4) integration, consolidates liquidity from a set of DEXs, offering users access to assets through the Sushi UI across multiple chains.

DEX Aggregator: Sushi’s DEX Aggregator guarantees users the most competitive swap rates by sourcing from a diverse pool of liquidity, optimizing price efficiency with no upfront fees.

Smart pools and protocol integration

Using Steer Protocol’s v3 automated liquidity management solution, Smart Pools on Blast aims to provide consistent fee income for liquidity providers in v3 positions. This system is designed to maximize returns while freeing liquidity providers from the burden of actively managing the pool.

ALSO READ  Hong Kong Embraces Virtual Asset Spot ETFs

Engaging with the new DEX experience

For those looking to dive into this enhanced multi-chain DEX experience, Sushi has provided simple and safe ramps:

Bridge: Users can effortlessly transfer their assets from Ethereum to Blast using Blast Bridge.

Swap: Blast token swaps are now enabled through Sushi, offering reduced fees compared to traditional channels.

Liquidity Provision (LP): Sushi users have the ability to provide liquidity to existing pools or initiate new ones using Blast’s native yield generation.

Sushi’s expansion on Blast is an extension of its ecosystem. This collaboration is expected to address the long-standing challenges of network liquidity shortages and complex interconnection processes.

Image source: Shutterstock

Leave a Comment