SushiSwap CTO Explains Why Project Isn’t Scaling On Optimism

The CTO of the decentralized exchange SushiSwap revealed why the protocol is no longer interested in the expansion of the second-tier solution using Optimistic Ethereum. The Layer-two Solution provider OΞ has whitelisted a few projects in the past year, including Uniswap and Synthetix, which gave it priority access to its platform when it was created. SushiSwap also wanted to be added to the whitelist but was unavailable, which led to the decision to postpone further development. Optimism clearly stated in its official document that “contract deployments to the Optimistic Ethereum mainnet are currently restricted by a whitelist”.

On Wednesday, Joseph Delong, the CTO of SushiSwap said in a thread named “Why Sushi isn’t coming to Optimism” that staying away from whitelisting means the protocol is “unwilling to continue to deploy it on the two-tier expansion platform”. Joseph quoted “non-preferential treatment” as the reason after SushiSwap provided a scaling solution on the testnet and trying to negotiate with the Optimism leadership.

Further, the CTO added that now for a long time, discussions with a “lot of dancing around” were happening. Thus, at last, they had to ask whether SushiSwap (which is a clone from Uniswap in late August 2020) will be getting the same treatment while its deployment.

“That is when the team told us point blank that Uniswap ‘had to go first.’ Meaning we were boxed out of deployment until Uniswap.”

More From The SushiSwap CTO

At present, the protocol is adopting the wait and watch approach. It favors what the CTO calls “trustworthy neutral platforms” ​​such as Arbitrum. Arbitrum is a two-tier solution provider that has reportedly whitelisted any projects that request it. Moreover, Joseph hoped that the SushiSwap community would support this action. He called on other projects to do the same “until Optimism makes any attempt at credible neutrality as an operator”. Uniswap announced its v3 protocol on Optimism in mid-July. Uniswap founder Hayden Adams stated that the ultimate goal to do this is to fully meet the demand for fast and low-cost decentralized exchange trading (DEX).

OΞ employs optimistic rollups. They rely on the data published on the blockchain, provided it is correct and allows a verification period. During this period, users can submit “fraud evidence” to show that the data is inaccurate and it may cause disputes. This should lead to the correction of the data. Anthony Sassano, the Ethereum influencer, states that it was disappointing to hear the news about UniSwap rejecting SushiSwap. Further, he said that in the long run, it was only optimistic about “credibly neutral and permissionless platforms”. He said:

“There’s no place in this ecosystem for walled gardens — I hope the Optimism team rectifies this.”

Responses From Uniswap And Optimism Ethereum

Adams of Uniswap then interrupted in between and started defending the move to deploy to his DEX before SushiSwap. Adams said it was “manufactured Twitter outrage. Not everything is a conspiracy lol. I don’t really see why it’s problematic to finish planned launches before taking on new ones.”

To this, Optimistic Ethereum also responded to defend its position and the whitelisting mechanism saying:

“We are whitelisting projects as quickly as possible and still maintain the safety of an alpha system. Uniswap deployed ahead of Sushiswap because they engaged with us 1.5 years ago, long before Sushiswap. First in, first out is not ‘playing favorites.’”

Other decentralized financial protocols and exchanges, such as Synthetix, which is already on the whitelist, have been implemented in OΞ, allowing its users to conduct fast and cheap transactions on the second layer. However, SushiSwap users need to wait longer.

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