SushiSwap, the major decentralized exchange, is exploring integrating with high-speed AMM Raydium on Solana to alleviate high gas fees.
It has been reported that a proposal, which was posted to the SushiSwap forum on February 22 under the codename ‘Bonsai,’ suggests building out the platform on the Solana ecosystem.
However, the integration is intended to mitigate Ethereum’s skyrocketing transaction fees, which have spiked to new all-time highs (ATHs) over the past 24 hours.
The report said that the proposal would involve integrating SushiSwap with Raydium‘s platform, with the Solana-based automated market maker that launched on February 21.
Solid 24h volume ranking for only 12 hours of trading. pic.twitter.com/kkLdKGi4L4 — Raydium (@RaydiumProtocol) February 22, 2021
“Handroll,” the proposal’s author, notes Raydium already features support for SushiSwap’s liquidity pools” by adding:
“We have been working on Raydium’s AMM and liquidity pool protocols since the fall of 2020 and have just launched on our platform […] Raydium’s protocol is already able to support SushiSwap liquidity pools for the Serum orderbook.”
Likewise, Handroll proposes the integration begins with Raydium working alongside SushiSwap to build support for liquidity pools and staking on the Solana-powered Serum DEX. After a testing period on Raydium’s testnet, the teams could then explore deploying Bonsai on Solana’s mainnet.
Ridiculously high Ethereum fees have @SushiSwap looking into a partnership with Solana-powered Raydium. If this goes through, the AMM could benefit tremendously from faster speeds and lower transaction costs. https://t.co/cSOb8QalHw — Cointelegraph (@Cointelegraph) February 23, 2021
As per the sources, the proposal claims that SushiSwap users will be able to carry out token swaps and manage their yield farms much faster and with a major reduction in transaction costs after the integration is completed. The SushiSwap team anticipates that Bonsai will be live on testnet within the first quarter of 2021.
Thus, Handroll added:
“We envision the end product as an additional offering on the SushiSwap page that maintains Sushi’s trademark UI and design but connects to Raydium backends.”
Source: Cointelegraph