Sushi has announced the launch of a new automated market maker, Trident.
The new AMM aims to improve on capital efficiency and lower gas fees for users and will compete with existing DeFi applications.
Sushi has released a limited edition LSD-themed NFT called “Bad Trip” to commemorate the launch.
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The Sushi team announced its new automated market maker by giving away copies of an LSD-themed NFT titled “Bad Trip”.
Sushi Reveals New AMM “Trident”
Sushi is looking to compete with other best-in-class DeFi applications.
The project’s CTO Joseph Delong announced a new automated market maker (AMM) called Trident at the Ethereum Community Conference (EthCC) in Paris Tuesday. Sushi had teased the project on Twitter over several weeks.
07/20 marks the date that we reveal to you all our Next Generation AMM, Trident🔱
Trident is a new AMM protocol built in-house by the Sushi team, with features never-before-imagined in DeFi.
We can’t wait to welcome you to the “not just a fork” SushiSwap, Trident, coming soon! pic.twitter.com/RTLiduUVZf
— SushiChef (@SushiSwap) July 20, 2021
The new automated market maker introduces three “prongs” designed to increase capital efficiency and improve user experience.
Trident’s first prong is its integration with the existing Sushi feature BentoBox. Users can allocate funds to the BentoBox to use as collateral or lend out to earn interest. Normally, this process of stacking “money legos” would require several costly transactions. However, by using BentoBox, funds will be committed to the application in a single transaction, saving users time and money.
The second prong is an expansion of pool-type options. Trident will standardize the pool interface, allowing new pool designs to be integrated seamlessly. In addition, several new pools will allow for more flexibility when providing liquidity.
Firstly, the introduction of constant product pools means users will no longer need to provide equal amounts of two assets to provide liquidity. Instead, the AMM will exchange deposits in the background, making sure assets are evenly distributed. The new AMM also introduces weighted pools. Similar to constant product pools, weighted pools allow liquidity providers to move away from equal distributions when providing liquidity, instead allowing for a percentage-based split. The DeFi project Balancer already provides weighted pool functionality and will therefore compete directly with Sushi’s Trident.
The next pool to be introduced through Trident allows for concentrated liquidity. Here, users are able to provide liquidity to a specific price range, similar to the functionality of Uniswap V3. The Sushi team hopes concentrated liquidity will help alleviate yield dilution in popular pools. Users will need to provide liquidity to specific ranges instead of the entire pool, offering higher interest from fees in the selected range.
Lastly, Trident also introduces hybrid pools, allowing users to swap like-kind assets at reduced price impacts, similar to Curve’s stablecoin pools. However, Sushi boasts that Trident’s hybrid pools will allow for up to 32 different assets.
After an array of new liquidity pools, the third and final prong of Trident is the AMM’s new routing engine, Tines. The new router is touted to improve capital efficiency and save users money by querying many pool types, considering gas costs, price impacts, and graph topology to generate the best price solution.
To commemorate the announcement, those who attended the EthCC event were able to receive a special Sushi card allowing them to claim a limited edition NFT titled “Bad Trip.” For those who weren’t able to attend, a fractionalized version of the “Bad Trip” NFT is being auctioned off in 20 parts on Sushi’s MISO platform. The NFT is listed under the ticker symbol “LSD,” with each token redeemable for a 900 tab piece of blotter paper.
To celebrate the Trident announcement, we have given away our Sushi ETHCC presentation attendees a Sushi ETH card with the key to our “Bad Trip” NFT.
The fractionalized and tokenized version of Bad Trip or $LSD is up for auction now on https://t.co/9NnSoDwriA pic.twitter.com/gtTlDnvx26
— SushiChef (@SushiSwap) July 20, 2021
With the announcement of Trident, the Sushi team is showing their dedication to building a comprehensive DeFi ecosystem. While the introduction of Trident’s new pools aims to compete with existing DeFi “blue chips” such as Balancer, Uniswap, and Curve, users will have to wait until launch to see if the new AMM will live up to the hype.
Disclaimer: At the time of writing this feature, the author owned BTC, ETH, and less than $25 of SUSHI.
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