Decentralized exchange Sushiswap is launching a decentralized perpetual futures exchange on the Sei Network, “Head Chef” Jared Grey said at a conference in Miami.
“It’s a new play for us,” Grey said at Quantum Miami, adding that a contract had been signed earlier in the week. “We’re working hand-in-hand with them on what developer resources need to be allocated from their side for Sushi to leverage what they’ve built so that we can provide value, as a brand, back to them.”
Sei Network, a new Layer 1 blockchain that specializes in decentralized trading applications, is “focused on having an order book and matching engine in their consensus layer, and they want to focus solely on that vertical, and I think that makes a lot of sense,» Grey said.
The move will take Sushiswap into non-Ethereum-based ecosystems and a different sector of decentralized finance. The decentralized exchange passed a governance proposal earlier this week to revamp its tokenomics to try and redirect value back to its native token, sushi, and the new exchange could impact Sushiswap’s tokenomics plan and add a new source of revenue for the protocol.
As a part of the Cosmos ecosystem, Sei is one of the largest non-Ethereum based blockchains that allows developers to build customized chains for specific applications. Sushiswap plans to work alongside the protocol in developing its ecosystem.
Perpetual futures in crypto is among the fastest-growing sectors, climbing to the number eight spot in combined Total Value Locked, according to DeFiLlama. The perpetual futures, or derivatives market, represents over $1 quadrillion in value in traditional markets, according to decentralized oracle network Chainlink.
Sushiswap was one of the first decentralized exchanges to gain major traction, but has faced challenges with its internal team, financial runway and the overall growing scrutiny the industry faces from regulators.