Explore spot trading, concentrated liquidity, and the current state of perps & lending
Getting Started
SushiSwap V3 is the latest version of the SushiSwap decentralized exchange, introducing **concentrated liquidity**, customizable fee tiers, and greater capital efficiency.
Official documentation and project pages are available at the Sushi docs and Sushi V3 portal. (e.g. SushiSwap Docs – AMM intro)
The V3 iteration builds upon V2's foundation but gives liquidity providers more control and flexibility. :contentReference[oaicite:0]{index=0}
Why Use SushiSwap V3?
Concentrated Liquidity: LPs can specify a price range in which to deploy capital, instead of providing across the full range. This can lead to higher fee earnings for the same capital. :contentReference[oaicite:1]{index=1}
Better Slippage & Efficiency: Because liquidity is concentrated where trades happen, slippage tends to decrease and price execution improves. :contentReference[oaicite:3]{index=3}
Cross‑Chain Deployment: V3 is deployed across many networks (Ethereum, Arbitrum, Polygon, Avalanche, etc.) to reach users where gas and liquidity are favorable. :contentReference[oaicite:4]{index=4}
Risk Mitigation vs Legacy Lending: Note: Sushi’s original lending unit (Kashi) has been deprecated, so V3 focuses on efficient AMM-based trading rather than built-in lending. :contentReference[oaicite:5]{index=5}
Step‑by‑Step Guide
Step 1: Connect Your Wallet
Use MetaMask, WalletConnect, or another Web3 wallet to connect to SushiSwap’s interface. Ensure you're on a network where V3 is live (e.g. Ethereum, Arbitrum, Avalanche).
Step 2: Switch to V3 Pools
In the Sushi UI, select the “V3” pools tab (or filter for V3). This ensures you're interacting with the new concentrated liquidity pools rather than legacy V2 pools.
Step 3: Add Liquidity (Specify Range)
Choose a token pair, then define the price **range** in which your liquidity will be active. The portion of capital outside that range will not earn fees until the price re‑enters it. :contentReference[oaicite:6]{index=6}
Step 4: Claim & Monitor Fees
As trades occur within your chosen range, you accumulate fees. You can claim them or reinvest them. Monitor performance and adjust ranges if needed.
Step 5: Exiting or Adjusting Position
When you want to exit or adjust, simply withdraw liquidity or modify the range. The UI often offers migration or repositioning features. :contentReference[oaicite:7]{index=7}
Security Best Practices
Always use official links and verified domain (e.g. sushi.com or docs.sushi.com).
Start with a small amount to test interactions.
Be careful when setting very narrow ranges — if price moves outside, your capital sits idle. :contentReference[oaicite:8]{index=8}
Watch out for slippage and transaction costs, especially on low liquidity networks.
Stay updated on protocol audits and announcements; Sushi’s code is open source and audited. :contentReference[oaicite:9]{index=9}
Check gas fees before transactions, especially on mainnet Ethereum.
Advanced Features & Considerations
Range Rebalancing
LPs may actively rebalance their position ranges in response to market movement, optimizing for fee capture. This is more manual but can boost yield in volatile markets.
Fee Tier Selection Strategy
Choosing the right fee tier is a strategic choice: stable pairs (e.g. USDC/USDT) might use 0.01 %, while volatile pairs could require 0.30 % or 1.00 % to attract liquidity. :contentReference[oaicite:10]{index=10}
Cross‑Chain & SushiXSwap Integration
Sushi is working on cross‑chain capabilities (SushiXSwap) to allow users seamless swaps across chains and improved routing among V3 pools. :contentReference[oaicite:11]{index=11}
Derivative / Perps Integrations
While V3 does not natively offer perps, Sushi's ecosystem may integrate derivatives protocols or partners to enable perpetual trading using liquidity from V3 pools as backing. This is an evolving area.
Conclusion
SushiSwap V3 represents a major evolution in decentralized exchange design. By allowing LPs to concentrate liquidity into custom price ranges and introducing multiple fee tiers, V3 boosts capital efficiency and gives users more control over yield. While Sushi’s inbuilt lending (Kashi) has been deprecated, the path forward lies in tighter integrations, derivative support, and cross-chain routing.
As with all DeFi interactions, adopt security best practices, start small, monitor your positions, and stay updated with Sushi’s roadmap. Visit the SushiSwap Docs to dive deeper.
Frequently Asked Questions (FAQ)
Q1: Does SushiSwap V3 support perpetual (perps) trading natively?
No — V3 itself is an AMM protocol for spot trading and liquidity. Perpetual features would need integration via external derivative modules or partner protocols.
Q2: Can I lend or borrow via SushiSwap V3?
No, Sushi deprecated its earlier lending product (Kashi). Lending and margin features are no longer supported in active form. :contentReference[oaicite:12]{index=12}
Q3: What happens if market price moves outside my chosen range?
When price goes outside your selected range, your position becomes inactive and no longer earns fees until the price returns into your range. :contentReference[oaicite:13]{index=13}
Q4: How do fee tiers work and how to choose one?
Fee tiers allow you to choose the trading fee your liquidity will capture (e.g. 0.01%, 0.05%, 0.30%, 1.00%). Stable or low-volatility pairs may benefit from lower fee tiers, whereas volatile pairs may require higher fees to attract liquidity. :contentReference[oaicite:14]{index=14}
Q5: Is V3 deployed on many chains?
Yes — SushiSwap V3 has been launched across many blockchains (Ethereum, Arbitrum, Avalanche, Polygon, etc.) to broaden accessibility and reduce gas friction. :contentReference[oaicite:15]{index=15}