SushiSwap acquires Shipyard Software to boost liquidity and reduce losses
A bid to stay afloat
On January 28, Sushi Labs, the developer behind the decentralized exchange (DEX) SushiSwap, announced its acquisition of Shipyard Software, a company specializing in cryptocurrency trading software.
The acquisition aims to address several common challenges faced by DEXs like SushiSwap, including "reducing impermanent loss, optimizing liquidity provision, and enhancing the efficiency of multichain trading," according to a statement from Sushi Labs provided to Cointelegraph.
Shipyard's products include Blade, an automated market maker (AMM) utilizing a Request-for-Quote (RFQ) system to prevent impermanent loss, and Kubo, a tool for boosting liquidity on decentralized perpetual futures, or "perps," exchanges.
Sushi Labs plans to integrate Kubo as a new perps product under the Sushi brand to reduce value loss for liquidity providers.
A bid to stay afloat
Launched in 2020, SushiSwap was once one of the most popular DEXs, with a peak total value locked (TVL) of over $8 billion in 2021. However, it now ranks 13th among DEXs in TVL, significantly trailing leaders like Uniswap and Raydium, which currently hold TVLs of approximately $5.6 billion and $2.7 billion, respectively. As of now, SushiSwap's TVL stands at about $234 million, according to DefiLlama.
SushiSwap also faces growing competition from DEXs on Solana and emerging networks like Hyperliquid.
As we wrote, an account on a decentralized crypto exchange is the first step you need to take toward becoming a crypto trader. Decentralized exchanges have recently increased due to the popularity of blockchain technology and cryptocurrencies.
