SushiSwap Deploys Layer 2 Scaling on Arbitrum Platform
Decentralized exchange (DEX) SushiSwap has made a move to the Layer 2 scaling platform Arbitrum in its latest effort to avoid Ethereum’s costly network fees.
The move was tweeted by lead developer ‘0xMaki’ on May 31, though there were no other details aside from the word “deployed.”
SushiSwap has already made moves to distance itself from Ethereum with a multi-chain roadmap which included deployment on Binance Smart Chain, Polygon, Fantom, and Moonbeam.
Also on May 31, SushiSwap CTO Joseph Delong reported that the DEX has been deployed to the Elysium platform.
Arbitrum on mainnet
Arbitrum launched to mainnet on May 28 heralding in another Layer 2 option for Ethereum developers. It’s the first true Layer 2 with full EVM (Ethereum Virtual Machine) compatibility, making it easy for developers to deploy DeFi apps directly.
Over 250 teams have requested access for the developer launch according to Offchain Labs in a recent blog post. The team added that it has labeled mainnet 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 each transaction, the network assumes that all are correct, making users intervene only if they see an incorrect transaction. This enables the chain to reduce fees by more than 50x for most workloads.
The system will operate at a “conservative speed limit” for the first couple of months to enable the team to respond to security events and make sure that user funds remain safe at all times.
As reported by BeInCrypto on May 27, Uniswap governance voted for deployment to Arbitrum since it has beaten Optimistic Ethereum to the mainnet launch.
SushiSwap currently has a total value locked of around $3 billion according to DeFi Pulse which puts it behind Uniswap, which has just over double.
SushiSwap has led in the Layer 2 race, however, but that has not been enough to pull the users and liquidity from its rival. Layer 2 aggregator Polygon has surpassed them both on the DeFi Pulse TVL charts with almost $7 billion locked up.
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 March 13 all-time high of $23.38.