Why SushiSwap’s 15% Gain Could Be The Beginning Of An Uptrend
Decentralized exchange (DEX) running on multiple networks, SushiSwap (SUSHI) currently moves in tandem with the general sentiment in the market. The token approached the $4 price point but started trending to the downside as Bitcoin was rejected above $45,000.
Related Reading | How A Whitehat Hacker Saved 109K ETH On SushiSwap-Based Contract
As of press time, SushiSwap trades at $3.5 with a 1.5% loss in the last 24-hours.
SUSHI moving sideways on the 4-hour chart. Source: SUSHIUSDT TradingviewSUSHI holders could benefit from a long-term bullish trend. Recently, developer 0xMaki shared a proposal to integrate SushiSwap with LayerZero via their first omnichain application called Stargate Finance.
LayerZero is a decentralized cross-chain solution to integrate multiple blockchains. The protocol allows the network to interact and communicate without a third party or token.
In that way, for SushiSwap, LayerZero and Stargate remove friction from the process of swapping tokens from a native chain to an alternative blockchain. The developer explained:
LayerZero, and is an Omnichain asset transfer protocol that leverages the Delta ? Algorithm to solve the bridging trilemma:
Instant Guaranteed Finality: the guarantee of funds on the destination chain when a transaction is successfully committed on the source chain.
Unified Liquidity: the shared access of a single liquidity pool between multiple chains.
Native Assets: the user-desired assets (native or most liquid synthetic) on the destination chain.
SushiSwap has been released on multiple blockchains, and with LayerZero and its Stargate application, the protocol could combine all its liquidity without a single point of failure.
This means the different versions of the DEX on Ethereum, Polygon, Binance Smart Chain, Fantom, and others could launch unify cross-chain strategies and merge their total value locked.
According to 0xMaki’s proposal, an integration with Stargate would “facilitate” the transfer and swapping of tokens between native assets. In that way, SushiSwap could see its potential “unlock” and provide users with an improved experience to perform cross-chain trading, new strategies, and increase liquidity across SUSHI pools.
SushiSwap Goes Beyond One Single BlockchainIn addition to these features, Stargate facilitates transactions by tracking the user’s gas reserves. As the developer explained, the application can move gas between different blockchains to enable a transaction. 0xMaki added:
This eliminates the pains and struggles of trying to find a gas faucet, requesting gas from another user, or trusting that a User Application will send you enough gas after transferring.
Stargate and its native token STG have attracted the attention of major players in the crypto space. Sam Trabucco, CEO at Alameda Research, expressed the firm’s long-term bullish thesis for STG.
The firm participated in STG’s recent auction where they “bought all the tokens”. The assets will be kept under lock for at least 3 years.
The cross-chain asset management opens up a wide array of possible DeFi use cases, makes capital allocation for firms like Alameda more seamless, and aids in making the crypto markets more efficient — among many other benefits @StargateFinance is creating.
— Sam Trabucco (@AlamedaTrabucco) March 22, 2022
Related Reading | SushiSwap Narrowly Escaped A $350 Million DeFi Hack, Here’s How
STG was recently launched on crypto exchange FTX via the spot market. Once the produce was deployed, the token saw an increase in volatility and has been trending downwards in the last hour with a 128% profit in the past week.
Read more: https://www.newsbtc.com/news/defi/why-sushiswap-15-gain-could-be-the-beginning-of-an-uptrend/
Text source: NewsBTC
