Why SushiSwap 15% Gain Could Be The Beginning Of An Uptrend

SushiSwap, a decentralized exchange that runs on several networks and is currently moving in sync with market sentiments. Although the token was close to $4, it started to trend downwards after Bitcoin was rejected at $45,000.

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SushiSwap currently trades at $3.5, with a loss of 1.5% in the past 24 hours.

SushiSwap SUSHI SUSHIUSDT
SUSHI moves sideways in 4-hour charts. Source: SUSHIUSDT Tradingview

Long-term bullish trends could help SUSHI investors. Developer 0xMaki presented a plan to connect SushiSwap, LayerZero and Stargate Finance via their first omnichain software called Stargate Finance.

LayerZero, a cross-chain decentralized platform that integrates multiple blockchains, is available. It allows the network and token to communicate with each other without the need for a token or third party.

This removes friction for SushiSwap and LayerZero when swapping tokens between a native blockchain and an alternate one. According to the developer:

LayerZero, and is an Omnichain asset transfer protocol that leverages the Delta Δ Algorithm to solve the bridging trilemma:

Instant Guaranteed Finality: A guarantee of funds on destination chains when transactions are successfully committed to the source chain.

Unified Liquidity is the sharing of one liquidity pool among multiple chains.

Native Assets are assets that the end user wants (native, most liquid and synthetic).

SushiSwap is available on many blockchains. LayerZero’s Stargate app and LayerZero make it possible to consolidate all of its liquidity in one place.

It means that the DEXs on Ethereum and Polygon could unify cross chain strategies, and their total value can be 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 blockchain

In addition to these features, Stargate facilitates transactions by tracking the user’s gas reserves. The developer explained that the app can transfer gas from one blockchain to allow for a transaction. 0xMaki added:

You can now stop the frustrations associated with trying to locate a gas faucet or requesting gas from other users.

Stargate and STG, its native token, have been a major draw for crypto-savvy players. 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”. They will keep the assets under lock and key for at least three years.

Related Reading| SushiSwap Narrowly Escaped A $350 Million DeFi Hack, Here’s How

STG was launched recently on the crypto exchange FTX using spot market. The token experienced volatility increases after the produce was deployed. It has seen a trend downwards over the past hour, with a profit of 128% in the week.

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