Sushiswap is a decentralized platform where users can provide liquidity to pools and earn interest on their crypto funds. The platform is a fork of Uniswap with the SUSHI token that fuels the ecosystem and enables its holders to control the protocol. The members of the ecosystem use it to swap ERC-20 tokens and deposit it as collateral to borrow funds.
Arbitrum is a Layer2 created specifically to make the Ethereum Network scalable. It settles on layer one of the system and performs computing operations off-chain, thus unloading the network. The technology of the Arbitrum bridge employed by the blockchain ensures faster performance and completion of transactions. Although it doesn’t operate directly on Ethereum, all its consensus mechanisms are preserved and work smoothly on the base network. As a result, users can benefit from lower fees, while the facility remains secure and decentralized.
Arbitrum was launched on May 28, 2021, as an additional Layer 2 option for Ethereum developers. Using the Layer 2 solution with full EVM compatibility, developers of the Ethereum ecosystem find the deployment of their DeFi apps easier. At the time of the launch, the official blog of the company reported about 250 teams that requested access for the developer launch of the chain labeled Arbitrum One by creators.
After the system was launched it was working at a conservative speed limit for the safety of user funds for the first two months. This was made in order to ensure everything worked properly and to be able to respond to security events in case something went wrong.
It is important to understand the difference between Arbitrum One, which is the mainnet Ethereum L2 chain, and Arbitrum, which is the technology used to develop Arbitrum One. The largest portion of fees collected on Arbitrum should be paid for posting calldata on Ethereum, which eventually goes to Ethereum miners. There are also expenditures for the support of infrastructure and operation of the chain. Being the native asset of Arbitrum, ETH can be used for L2 payments. Those who want to use the chain should first use the Arbitrum bridge and transfer ETH from Ethereum to L2 wallet.
The flagship L2 chain was developed using Arbitrum technology. The use of optimistic rollups removes the necessity for zero-knowledge proofs with the help of changes added to the consensus mechanism. It means that there is no need to verify single transactions as the network assumes that they are correct, while users can intervene themselves in case they notice incorrect transactions. It helps to save reduce fees by approximately 50x and remove extra workload from the chain.
The main benefit of the solution is that Arbitrum Rollup can scale any Ethereum contract as it offers a whole suite of Ethereum scaling solutions. At the time of writing, three modes of Arbitrum are available: AnyTrust Channels, AnyTrust Rollup, and AnyTrust Channels.
In March 2020, Arbitrum announced the release of AnyTrust Chains, which are fast and low-cost layer2 chains with minimal trust assumptions operating alongside Arbitrum One. To implement the product, the team employed optimistic rollups, inheriting the security of the underlying layer1 chain. Using this technology, the platform can attain higher throughput and lower fees compared to L1 chain.
The members of the team don’t agree with experts who see the future of smart contract systems in ZK rollups and consider that optimistic rollups present a better alternative due to their inherent scalability. It perfectly meets users’ realistic needs for a trustless and secure EVM-compatible L2 chain, which is employed to work with hundreds of decentralized applications, thousands of users, and millions of transactions.
Built by Offchain Labs, Arbitrum has a team of highly professional specialists that includes engineers, researchers and cryptocurrency enthusiasts.
The co-founder and chief scientist of the platform, Ed Felten, is a retired Professor of Computer Science and Public Affairs at Princeton University. He previously worked as senior advisor to the President and was Deputy United States Chief Technology Officer in the White House. He co-founded the platform with Steven Goldfeder, CEO, who holds a PhD from Princeton Univercity, and Harry Kalodner, CTO, who leads the engineering team at Offchain Labs.
Sushiswap implements scaling solutions
In May 2021, DEX Sushiswap made a move to the L2 scaling platform Arbitrum in an effort to avoid Ethereum’s high network fees. The lead developer was the first one to announce the deployment of Sushiswap on Arbitrum in his Twitter account.
Previously, Sushiswap tried to distance itself from the Ethereum network with its costly network fees. The team has developed a multi-chain roadmap demonstrating the further steps of the DAO to enable the platform’s expansion. In particular, the roadmap shows the plans for Sushiswap deployment on Polygon, Moonbeam, Fantom, and BSC (Binance Smart Chain) now rebranded to BNB Chain. Although the roadmap didn’t include the Elysium platform, the deployment of DEX on Elysium took place on May 31, 2021, according to the report of Joseph Delong, who was SushiSwap CTO at that time.
How to use Arbitrum on Sushiswap
Those who want to provide liquidity on Arbitrum Sushiswap should have Metamask wallet, ETH tokens for gas coverage, and a pair of ERC20 tokens required to provide liquidity to Sushiswap. It is possible to set up the Arbitrum network with Metamask wallet if you configure the Metamask wallet to connect to the Arbitrum network. Users should open Metamask and click on the network selection dropdown with the further choice of “Custom RPC”. The list of network parameters are specified on the official website of the platform. One should only copy them, fill out the fields, and save the changes. After these steps are taken, Arbitrum is added to the list of available networks within Metamask making it possible to use the Arbitrum One Bridge for moving tokens over to this network from Ethereum. Then one can select a suitable Sushiswap pool to provide liquidity and earn fees while farming by using the “Add Liquidity” toggle switch that can be found in the Farming Menu.