SushiSwap (SUSHI) Unveils “Next Generation AMM” Trident
DeFi protocol SushiSwap recently shared details on its highly-anticipated ‘7/20’ announcement whereby it unveiled the launch of its “next-generation AMM” dubbed Trident.
SushiSwap Unveils Capital Efficient Trident
Speaking at ETHCC held in Paris on July 20, SushiSwap CTO, Joseph Delong unveiled the organization’s latest development called Trident which is being positioned as the “next-generation AMM.”
Notably, Delong added that Trident has been developed in-house by the Sushi team as a response to critics who continue to call Sushi “just a fork.”
Trident brings a whole host of innovative features in the form of new types of liquidity pools which marks a departure from the typical singular constant product pool used by other DeFi protocols.
Among these is the “hybrid pool” which reduces the swap price impacts via stableswap curve to trade between similar assets.
In total, 4 new pool types will be featured during Trident’s launch, the announcement reads. These are constant product pools, hybrid pools, concentrated liquidity pools, and weighted pools.
Further, the addition of an Ipool interface will add some flexibility on the users’ part to allow them to add further pool types as and when necessary.
Sushi users will have the option to choose the kind of pool that matches their risk appetite. This sits in line with the Sushi team’s mission to relieve some of the market risk and volatility experienced by cryptocurrency investors.
Further, Sushi announced it would be using a new routing engine called Tines to query the various pools to discover optimal price solutions keeping into consideration factors such as gas costs and price impacts.
Leveraging the BentoBox
Trident leverages the BentoBox – Sushi’s token vault system that currently hosts dApps like Kashi, Miso, and others. This means Trident will be able to offer passive yields on top of deposited assets.
Specifically, the core reason to develop Trident within the BentoBox is to boost the power of Sushi’s new AMM by applying strategies to virtual balances within itself. Delong added:
“Yield from these strategies are returned to the user, which makes Trident the most capital efficient AMM in existence.”
Interestingly, Sushi announced that Trident code will be open-source in contrast to its competitor, Uniswap’s v3 code that is not open to the public.
At press time, SUSHI trades at $6.68, according to data on CoinGecko.