SushiSwap to move to Avalanche, starting with $15M liquidity mining incentive
- SushiSwap, the decentralized finance ecosystem's largest automated market maker, is now building on Avalanche's blockchain and committing $7.5 million to liquidity mining.
- Avalanche's native token AVAX has surged nearly 160% in the past week in a bull run triggered by the launch of the $180 million in decentralized finance incentives.
- Avalanche's bridge facilitates the transfer of Ethereum tokens to Avalanche.
Avalanche, the fastest smart contracts platform in the blockchain industry, geared up to capture a larger market share of the decentralized application (dApp) ecosystem and launched Avalanche Rush on August 19. Rush is a $180 million liquidity mining incentive program.
SushiSwap next largest project to start building on Avalanche after Aave and Curve Finance
In the race to acquire the largest share of the Decentralized Finance (DeFi) ecosystem's Total Value Locked (TVL), Avalanche is competing with rivals Solana and Terra.
Avalanche is an open, programmable smart contracts platform that claims to be the fastest in the industry. The project was created by Cornell University computer science professor Emin Gün Sirer and features on the community's list of "Ethereum killer" projects.
Through $180 million liquidity mining incentives, the platform aims to attract projects like SushiSwap to build on their blockchain network. SushiSwap is among the most significant players in the DeFi ecosystem, alongside Aave and Curve Finance that are already building on Avalanche's blockchain.
Avalanche announced SushiSwap's addition to its platform on crypto Twitter.
#AvalancheRush is welcoming a new member to the lineup!
— Avalanche (@avalancheavax) August 24, 2021
Hope you’re coming with an appetite because @SushiSwap is now on the menu.
The largest DeFi incentive program ($180M) now just got better. #AVAX https://t.co/J5ibiei3s9
The smart contracts platform timed the re-release of its bridge for transferring Ethereum ERC-20 tokens to Avalanche ahead of the announcement of mining incentives.
The $600 million DeFi hack on Poly Network and the recent rug pull by the Luna Yield team on the Solana network have negatively impacted user's confidence in liquidity mining pools and DeFi projects. The re-release addresses this issue with enhanced security.
The latest addition to Avalanche's Rush program, SushiSwap, allows the Avalanche foundation and the project to allocate nearly $7.5 million worth of AVAX and SUSHI tokens to the mining incentives over the next 90 days.
Interestingly, liquidity mining incentives have become critical when DeFi users have lost funds to rug pulls. Committing their assets to a protocol's liquidity mining pool and earning a reward in return is likely to attract new users to Avalanche.
SushiSwap now has the opportunity to extend SUSHI token incentives outside the Ethereum network through Avalanche. Sushi's lead contributor, who identifies as 0xMaki, said,
The Avalanche community is one of the most compelling reasons to align incentives with the Avalanche chain.
Avalanche's cryptocurrency AVAX has witnessed a rapid surge of nearly 160% in the past seven days in response to the developments on the native blockchain. The pseudonymous cryptocurrency analyst behind the Twitter handle @AltcoinSherpa claims that AVAX tokens are one of his largest crypto holdings, and he started accumulating when it traded at $10.
$AVAX: 2 areas of resistance coming up here. This looks to be going the way of SOL and LUNA. I sold some last night to buy more coins within the Avalanche ecosystem (more Qi). Still 1 of my biggest bags and have been buying since $10. #AVAX pic.twitter.com/g9mTSR5V2Z
— Altcoin Sherpa (@AltcoinSherpa) August 23, 2021
Overall, analysts have a bullish outlook on Avalanche's growth and captured market share in the dApp ecosystem.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
