Sushi, a venerated decentralized exchange (DEX) that has been at the heart of Ethereum’s DeFi evolution, is now live on Blast, an innovative Layer 2 solution that offers native yield on the Ethereum blockchain. This development represents a significant leap for Sushi, known for its trailblazing expansion across 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 that integrates native yield generation, offering users the unique advantage of automatic compounding balances. This yield is derived from two primary sources: ETH staking and Real-World Asset (RWA) protocols. By passing the yield from these decentralized protocols back to users, Blast ensures that the benefits are directly accessible to the community.

The Sushi and Blast Synergy

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

Key Highlights of the Sushi-Blast Integration

Yield Generation: Yield on Blast is sourced from ETH staking and RWA protocols, with Sushi pool deposits automatically accruing this yield.

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

Enhanced Liquidity Access: The Sushi Swap API, Route Processor 4 (RP4) integration, consolidates liquidity from an array of DEXs, offering users asset accessibility through Sushi’s UI across multiple chains.

DEX Aggregator: Sushi’s DEX aggregator guarantees users the most competitive swapping prices by sourcing from a diverse liquidity pool, optimizing price efficiency without frontend fees.

Smart Pools and Protocol Integration

Utilizing Steer Protocol’s v3 Automated Liquidity Management solution, Smart Pools on Blast aim to ensure consistent fee earnings for liquidity providers in v3 positions. This system is designed to maximize returns while relieving liquidity providers from the burden of active pool management.

Engaging with the New DEXperience

For those looking to dive into this enhanced multi-chain DEXperience, Sushi has provided simple and secure on-ramps:

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

Swap: Token swaps on Blast are now enabled via Sushi, offering reduced fees compared to traditional channels.

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

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

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