How SushiSwap’s New Products Could Propel It To The DeFi Top

Reynaldo Marquez

4 years ago

2 mins read

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The DeFi sector saw a sharp drooped in its Total Value Locked, according to DeFi Pulse data. At the time of writing, the metric is recovering quickly and stands at $54.93B. Sitting at the number six spot on the top 10 DeFi protocols by TVL with $3.88B, SushiSwap could be on the verge of taking a leading position.

Uniswap’s v3 deployment is around the corner, but its competitor remains in the innovative race. Since January 2021, SushiSwap has been taking over the total Weekly DEX Volume, as research firm Messari reported.

Presently, SushiSwap generates around 15% of the weekly DEX volume. In comparison, Uniswap is responsible for around 11% of the same metric, as shown in the chart below.

How SushiSwap’s BentoBox and Kashi operate

Recently, SushiSwap released a new “aggressive strategy”. Its objective, to grow beyond its current use case as an automated market maker. The strategy revolts around BentoBox and Kashi Lending.

The first product is a single vault that contains the assets deposited by users and makes them available for DApps “builts off of the vault”, as Messari stated. In contrast with similar products, BentoBox is more efficient when transferring the token, more efficient in terms of gas fees and complexity, easier to integrate, and has “a single token approval for use”.

On the other hand, Kashi is a lending and margin trading platform. Created as BentoBox’s first DApp, Kashi operates with “isolated lending pairs”, as Messari stated.

Users lending assets in Kashi can yield an interest rate. The lending pairs work with a similar mechanism as that of liquidity pools, a user provides the asset as collateral for the lender, Messari adds:

By having specific lending pairs where the collateral can only be used to borrow one specific asset (eg. in a ETH/SUSHI pair, deposited ETH acts as the collateral for SUSHI and only SUSHI), the risk for users can be isolated to the quality of assets and oracle used for the pair.

As a SushiSwap developer reported, both BentoBox and Kashi have been live for only a week. However, the products are already seen a high demand for the stablecoins pairs. In its lending pairs with USDC with over 70% utilization and 100% utilization for YFI/SUSHI.

With USDT there has been a strong demand to use RUNE and ETH, as collateral and Bitcoin in its synthetic form wBTC. For this last part, there is around 50,000 to 70,000 avail and a 1% borrow rate.

The developer explained Kashi offers multiple strategists for an investor to leverage fluctuations in the crypto market. For example, and user can buy “the dip” on a token by using it as collateral to borrow a stablecoin with a discount borrow limit.

Kashi and BentoBox have support for Binance Smart Chain and will be available on EVM compatible networks. The developer said more features and integrations will be implemented:

Creates a one stop shop for projects to setup incentives for AMM LP providers and Kashi LP providers. Miso will push this even further along, and we imagine Sushi providing infrastructure for new projects to come market quick.

SUSHI is trading at $12,41 with a 10.5% correction in the daily chart. In the weekly and monthly chart, SUSHI has 12.4% and 38.9% losses, respectively.

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

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