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?

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

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}