SushiSwap has announced on the decentralized exchange “Sold Issue” Kashi, a niche lending platform designed specifically for stock exchange trading, and BentoBox, a dual-use income register.
Kashi aims to allow traders to borrow assets to create long-term and short-term trades, like other lending platforms such as Compound or Aave, and BentoBox will allow users to receive interest from agricultural liquidity pools while using the same tokens to replenish lending pools. . … …
According to Joseph Delong, CTO of SushiSwap, Kashi SushiSwap aims to be more specialized than other lending protocols, allowing for a wider range of assets available for loan. This is achieved by isolating risk between individual credit pairs, which means that a fall in the value of a particular asset will not affect all positions on the platform. While on other lending platforms, users who deposit an asset can use it as collateral to borrow a listed asset, but Kashi uses certain lending pairs. A user who deposits ETH with Wrapped Bitcoin (WBTC) will only be able to borrow WBTC and not other assets.
“Cashy is a simple lending market. The reason why most lending protocols are naturally conservative with the addition of security and loan tokens is because the risk is concentrated in the entire group. ”[…] For isolated credit pairs, the security and loan token depends on the pool. … Thus, if the liquidation fails, only this one pool is in danger of going bankrupt. ”
DeLonge expects that this will be a “lending moment for AMM” where users can “choose the markets they deem appropriate” and thus significantly improve capital efficiency in the lending market.
An isolated risk profile means that Kashi can add many assets with much higher risk than other platforms, so that a wide range of cryptocurrencies can be sold in a short time. The ability to sell can significantly improve market efficiency by allowing traders to express their opinion on the price of an asset, as well as making it easier to use derivatives such as futures and options. Kashi also offers express loans as well as instant and unlimited loans that only exist if repaid in a block. Kashi V1 includes a predefined list of credit groups, although a V2 release in a few weeks should allow anyone to create their own pairs.
For non-traders, the Kashi lending platform allows them to generate income from their assets through BentoBox, which acts as a wallet for Kashi’s company. The platform allows users to combine revenue streams, earn commissions from SushiSwap sellers, liquidity mining bonuses from Onsen and interest paid by Kashi users.
BentoBox and Kashi have been in development for a long time and were first announced in September 2020, shortly after the creation of SushiSwap. According to her GitHub page, Kashi was initially confirmed by PeckShield and in part by Quantstamp, although “the accuracy was not overwhelming.” The SushiSwap team then focused on building an internal checklist and achieving 100% test coverage. Certora also conducted a formal contract review process to prove that the software performed mathematically as expected.
Core team member SushiSwap 0xMaki expressed enthusiasm for the rolling launch and said that users can soon expect new features.
“Society has been waiting for this moment since October, and today we are launching only the first version of the product, which will be developed on an updated basis,” he said. “I strongly believe that we have managed to put together one of the most passionate DeFi teams. Our product line is so complete that we had to include Certora with 3mo to meet all SCs needs. ”
Kashi is one of the first major implementations of the SushiSwap roadmap for 2021, which aims to diversify exchanges beyond a purely automated market maker platform. This marks another difference from the company that came from Uniswap, if V3 was focused on changing AMM’s liquidity mechanisms.