Decentralized trade SushiSwap has launched Kashi, a specialised lending platform particularly designed for margin buying and selling on the trade.
Decentralized trade SushiSwap has launched Kashi, a specialised lending platform particularly designed for margin buying and selling on the trade. Kashi lets merchants borrow belongings for creating leveraged lengthy and brief positions, equally to different lending platforms like Compound or Aave.
SushiSwap’s Kashi goals to be extra specialised than different lending protocols, permitting a wider number of belongings obtainable for borrowing. It does so by isolating threat between particular person lending pairs, that means {that a} collapse in worth of 1 explicit asset is not going to have an effect on all of the positions on the platform. Whereas on different lending platforms, customers depositing an asset can use it as collateral to borrow any asset listed, Kashi makes use of particular lending pairs. A consumer depositing Ether (ETH) right into a vault with Wrapped Bitcoin (WBTC) will solely be capable to borrow WBTC, not different belongings.
The remoted threat profile implies that Kashi can add many extra belongings with a lot greater threat than different platforms, enabling shorting on a wide array of crypto belongings. The power to brief can improve market effectivity to a major extent, letting merchants absolutely categorical their opinion on the worth of the asset, in addition to facilitate derivatives akin to futures and choices. Kashi additionally options flash loans, immediate and limitless loans that don’t exist except they’re repaid in the identical block. Kashi V1 features a pre-built listing of lending swimming pools, although the V2 launch in a number of weeks ought to enable anybody to create their very own pairs.
For non-traders, the Kashi lending platform permits acquiring yield on their belongings by way of BentoBox, which acts because the pockets for Kashi. The platform permits customers to mix yield sources, acquiring each the charges from SushiSwap merchants, the Onsen liquidity mining rewards, and the rates of interest paid by Kashi customers.
BentoBox and Kashi have been in improvement for a major period of time, first being introduced in September 2020, shortly after the creation of SushiSwap. In line with its GitHub web page, Kashi was initially audited by PeckShield and partially by Quantstamp, although the “thoroughness wasn’t overwhelming.” The SushiSwap workforce then targeted on creating an inner guidelines and reaching 100% take a look at protection. Certora has additionally performed a proper verification of the contracts, which permits to mathematically show that this system behaves as anticipated.
Kashi is likely one of the first main implementations of SushiSwap’s 2021 roadmap, which goals to diversify the trade past a pure automated market maker platform. This marks an extra level of divergence from the undertaking it forked from, Uniswap, whose V3 launch targeted on altering the liquidity provision mechanics of its AMM.