In the case of SushiSwap and the Sei Network, the benefit for both firms is quite clear and besides growing its influence, the former will use the partnership to generate a new revenue stream for the protocol.
The Decentralized Exchange (DEX) platform, SushiSwap (SUSHI) is expanding its footprint in the blockchain ecosystem as it is reportedly set to launch a new Perpetual contract futures exchange on the Sei Network. As reported by The Block, citing SushiSwap’s Head Chef, Jared Grey, the move to launch the new trading engine on the Sei Network is a calculated effort to expand its footprint beyond the confines of the Ethereum Blockchain.
SushiSwap was one of the first DEXs to make its way into the Decentralized Finance (DeFi) ecosystem. Its existence was initially marred by the rug pull of its founder, Chef Nomi and at the time, Sam Bankman-Fried (SBF) came to the rescue of the exchange by taking over its management.
Over the years, the trading platform and its ecosystem have stabilized, and though its native token SUSHI is no longer tagging along with its top competitors including Uniswap (UNI) and PancakeSwap (CAKE), it is still one of the most revered digital tokens around today.
According to Jared, the agreement or contract to launch the new exchange had already been signed by SushiSwap and Sei Network about a week ago.
“It’s a new play for us,” Grey said at Quantum Miami, adding that a contract had been signed earlier in the week. “We’re working hand-in-hand with them on what developer resources need to be allocated from their side for Sushi to leverage what they’ve built so that we can provide value, as a brand, back to them.”
The choice of the Sei Network is not far-fetched. It is a Cosmos-based protocol that is designed for developers to create new specific trading applications with massive bandwidth. According to Grey, the Sei Network is “focused on having an order book and matching engine in their consensus layer, and they want to focus solely on that vertical, and I think that makes a lot of sense.”
SushiSwap Launch into Sei Network: a Mutually Beneficial Linkup
It is not uncommon to find progressive partnerships between startups in the Web 3.0 ecosystem. In the case of SushiSwap and the Sei Network, the benefit for both firms is quite clear and besides growing its influence, the former will use the partnership to generate a new revenue stream for the protocol.
In addition, the new trading engine will be beneficial in its plans to revamp the tokenization of the SUSHI native token, a move it believes will help redirect value to the digital currency. For Sei Network, SushiSwap is a known and trusted name in the decentralized finance ecosystem, and having the protocol on board will be a good way to expand its reach across the board.
There is no definitive time that the perpetual futures exchange will be launched, however, the synergy of efforts from both protocols will be required to beat the current liquidity strain that was brought in by the crypto winter.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
