The BentoBox and Kashi protocols, which SushiSwap announced in its roadmap at the beginning of the year, were recently launched on the DeFi protocol, which now specializes in margin trading.
Amidst the recent announcements and launches that various protocols have made DeFiLike Uniswap and 1inch, SushiSwap reveals a change of direction to differentiate itself from Uniswap and the competition, activating two protocols announced in its 2021 roadmap at the beginning of the year.
BentoBox, a dual-purpose yield asset vault was recently activated on SushiSwap; and along with it, the margin trading platform Kashi Lending & Margin Trading. Kashi is the first decentralized application (dApps) launched on BentoBox, which will allow users to efficiently borrow on DeFi. Kashi aims to offer a specialized lending platform that allows users, traders, and investors to isolate risk in order to increase the asset options they can trade.
As indicated by release Released by the developers of SushiSwap, DeFi protocols like Aave and Compound have attracted thousands of users and billions of dollars since launch, but the limitations they impose by basing their risk on the highest-risk asset they own leads to supporting a narrow pool of assets, which in turn prevents them from continuing to grow in adoption and value. With Kashi, SushiSwap seeks to overcome these limitations, allowing users to create the markets they need, adding the asset pairs they want, regardless of the risk level.
SushiSwap notes that by isolating risk, a price drop or crash in one of the assets will only affect the trading pair, and not the rest within the protocol. Still, they warn that highly volatile assets will create much more volatile markets than other assets with less risk.
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Breakthrough Innovation in SushiSwap
BentoBox, which was announced in Q2020 XNUMX, saw its launch delayed when the developers announced that instead of one product, they would be creating two. The developers claim that during the development of the asset vault they discovered the need to develop Kashi, the platform specializing in lending and margin trading, independently.
The BentoBox protocol is the vault that securely stores tokens and generates returns from flash loans and other financial strategies, while Kashi is the one that uses the assets stored in BentoBox to lend, borrow, and perform leveraged trading transactions quickly and easily.
The development of BentoBox and Kashi, as its first deployed dApp, signify a revolutionary innovation in SushiSwap’s L1, the developers claim. This vault, as SushiSwap explains, functions as a decentralized App Store to deposit assets and enable other dApps, becoming a “game changer” for SushiSwap.
Differentiating from the rest
SushiSwap is on track to become more than just a DeFi AMM. In its 2021 roadmap, SushiSwap explained that it would develop new features to specialize in the entire DeFi ecosystem; and even add support for non-fungible tokens (NFT) in the future.
On its Twitter account, SushiSwap noted that isolated lending and the use of dual tokens, with dual functions, make its Kasi platform “a rarity in the DeFi space.”
Also, with isolated lending, SushiSwap explains that users of the protocol who wish to become borrowers do not have to become liquidity providers first, as is the case in other DeFi protocols. With isolated lending, users can be borrowers directly; that is, borrow an asset directly on the protocol, without collateral.
Likewise, the isolated lending feature that SushiSwap is integrating allows it to offer flash loans that help investors generate additional income in a very short time.
Both BentoBox and Kashi are in their first version, and according to the developers, they will soon launch the second version of Kashi, which will be accompanied by new innovations that will be beneficial for investors.
At press time, SushiSwap maintains a liquidity of 4.110 million, and its SUSHI token is trading at a value of approximately $16.
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