The market for cross-chain swaps is immense and growing, particularly for fast L1 <-> L2 swaps. The current UX for going from, say, GMX on Arbi to SUSHI on mainnet onchain is terrible - GMX for USDC on Arbi, bridge the USDC to mainnet, and swap into SUSHI - huge pain in the ass. Existing cross-chain DEXs such as Multichain aren’t well known and have security concerns. Given crosschain swap volumes will only increase in coming years, xSwap is perfectly positioned to be what could be Sushi’s most successful product.
Unfortunately, Sushi today is not a leader in liquidity on L2s and alt L1s (or even mainnet). I have tried to use xSwap a few times to buy assets on L2s with no luck as the liquidity pools could not even support a few hundred $ in size.
Today there are plenty of amazing projects and ideas in the works such as a Trident, Bento Box, and the new tokenomics that hope to drive liquidity to the pools and solve this exact issue. This is great and I fully support all of them, but I still see an immense value in making xSwap an aggregator for liquidity from other protocols as well while continuing to charge a fee for protocol revenue.
I look forward to a hopefully lively conversation surrounding xSwap aggregation!
there is an opportunity on the market concerning this topic indeed. Would like to be part of it if anythings came up but i don’t think team has a bandwith to built this tool for now
Would Sushi be interested in a partnership with THORSwap to offer native cross-chain swaps to 5,000+ Tokens across 9 Blockchains (including BTC, ETH, BNB, ATOM, AVAX, LTC, DOGE, RUNE, BCH) in 1-click? No bridges/wrapping assets. We already aggregate Sushi liquidity to connect ERC-20 tokens to crucial L1’s. We believe in a healthy DeFi future where DEXs can aggregate aggregators to offer users the best price/speed/secure non-custodial trading experience.
Our SwapKit API/SDK is a simple all-in-one solution to offer any protocol to integrate true decentralized cross-chain swaps. We’ve long been fans of Sushi, do get in touch if we can help with XSwap!
Although this would be cool, this would likely not be included in xSwap the aggregator, as Sushi does not really need new cross chain swap tech before optimizing the current method (unless we were to completly pivot.)
What Sushi really needs is access to deep pairs on Mainnet, Arbitrum, Optimism, and any other USDC enabled chain so that the current implementation can be viable for swapping in the multichain/L2 centric world.
Yes, we are exactly going on this route. The first step of the route is launching our DEX Aggregation, which would allow us to scale Trident to all the 20+ networks we are on. It will also give users better price while trading at Sushi.
Once this update is completed, we will keep on adding more liquidity sources to make the aggregation much better, so it’s an ongoing process. The first stage should go live before end of March 2023.
The next update is with SushiXSwap (Cross Chain Swaps) which would support this DEX Aggregation feature, this new update will also bring some bridges to be used under the SushiXSwap umbrella, but not all of them, since we want to have the same UX as we had with Stargate. We are working with few bridges and we will add them soon. Once they get added, Tines can not only aggregate DEXes but also these bridges, so Tines becomes Cross Chain Bridge and DEX Aggregator.
This is also an ongoing process, we’ll add new bridges as they come. Infact a PR for Multichain (AnySwap) is already live, we haven’t included that yet, as SushiXSwap needs more update to make it much more future ready with DEX Aggregation.
This way users of Sushi will receive better swap price, better bridging and better cross chain swap price and experience.
We also have one more product in works, that would further enhance the experience and better the price, even after aggregation.