SushiSwap v3 represents a significant evolution in decentralized finance, introducing concentrated liquidity that allows liquidity providers (LPs) to allocate capital within specific price ranges. This major upgrade dramatically improves capital efficiency compared to previous versions.
Built on the foundation of the original SushiSwap protocol, v3 introduces advanced features including multiple fee tiers, range orders, and improved price oracles, providing a more sophisticated and flexible DeFi experience for both traders and liquidity providers.
Provide liquidity within custom price ranges to maximize capital efficiency and earn higher fees on your assets.
Choose from different fee tiers (0.05%, 0.30%, 1.00%) based on the expected pair volatility.
More accurate and gas-efficient price oracles that provide time-weighted average prices (TWAPs).
Place limit orders by providing liquidity above or below the current price range.
Enhanced smart contract architecture with multiple security audits and community oversight.
Reduced gas costs for common operations, making DeFi more accessible to all users.
Begin by connecting a Web3 wallet like MetaMask, WalletConnect, or Coinbase Wallet to the SushiSwap v3 interface. Ensure your wallet is configured for the blockchain networks you plan to use.
Navigate to the Swap section to explore available trading pairs. SushiSwap v3 offers improved pricing and reduced slippage through its concentrated liquidity model.
In the Pools section, you can provide liquidity within custom price ranges to maximize your fee earnings based on your market outlook.
Stake your LP tokens in yield farms to earn additional SUSHI rewards on top of your trading fee income.
Concentrated liquidity allows liquidity providers to allocate their capital to specific price ranges rather than the full price spectrum from 0 to infinity. This dramatically increases capital efficiency, allowing LPs to provide the same liquidity depth as v2 with less capital, or provide more depth with the same amount of capital.
SushiSwap v3 introduces multiple fee tiers (0.05%, 0.30%, and 1.00%) that liquidity providers can choose from when creating a pool. The appropriate fee tier depends on the expected volatility of the trading pair - stablecoin pairs typically use the lowest tier, while more volatile pairs use higher tiers.
Key advantages include: up to 4000x capital efficiency for liquidity providers, multiple fee tiers, improved price oracles, range orders that function like limit orders, and reduced gas costs for traders. These improvements create better trading conditions and higher potential yields for liquidity providers.
Yes, SushiSwap v2 continues to operate and will remain available for users who prefer its simpler liquidity provision model. However, v3 offers significant advantages for both traders and liquidity providers, so we recommend migrating to v3 for most use cases.
Range orders allow you to provide single-sided liquidity above or below the current price. When the price moves into your specified range, your assets are automatically swapped at better rates than market orders. This functions similarly to a limit order but with the added benefit of earning fees while waiting for the price to reach your target.
Yes, SushiSwap v3 is deployed on multiple Ethereum Virtual Machine (EVM) compatible chains including Ethereum Mainnet, Polygon, Arbitrum, Optimism, and more. This multi-chain approach allows users to access SushiSwap v3 features while benefiting from lower gas fees on Layer 2 solutions.