SushiSwap has announced the launch of a lending and margin trading platform called Kashi. Kashi will support token pairs for shorting, a previously inaccessible feature that is now possible with its risk isolation infrastructure.
Kashi users can create lending pairs of their choice by depositing assets in SuhiSwap's new token vault, BentoBox, to maximize yield generation on idle tokens. The move has seen a significant number of SUSHI tokens purchased along with many mid-sized whales entering the network, expecting a bullish turn of the market.
What Is BentoBox?
BentoBox is a cryptocurrency token vault that will help users generate yield from flash loans and other protocols built from its framework's strategies. It serves as a wallet to the Kashi lending and margin trading platform.
The exciting part is the dual token usage to maximize yield generation. The team stated,
"The crucial role that the vault plays is that it allows users to earn interest by lending out their assets to margin traders, while simultaneously earning yield on the same tokens from liquidity providing or farming on DeFi protocols."
The tokens in BentoBox can be used on the Dapps built on its infrastructure while simultaneously earning interest in DeFi protocol farms. So while users earn interest by lending out their assets to margin traders, they can simultaneously earn yield on the same tokens from liquidity providing or farming on DeFi protocols.
BentoBox serves as a solution for Ethereum's network's transaction time and high fees, where users can trade shorts in a single transaction with more leverage.
A Lot More Trading With Kashi
Users can deposit assets on the BentoBox vault and link it to Kashi to create a supply or borrow pair of their choice. The token pair can be used to lend or select from a wide range of tokens, from a wide range of risk tolerances to short. In short, high-risk assets will be accessible for margin transactions on Kashi.
Kashi's margin trading solution uses an elastic interest rate having a target utilization rate of 70-80% of the total supply. The elastic rate will increase if the pair is underutilized and will decrease if over-utilized. Thus, suppliers are incentivized to maintain assets in demand on the platform, and those that receive less interest, off the platform.
Significant Rise In SUSHI Holders
The Sushi community is looking forward to the release of BentoBox and Kashi. The platform saw a significant spike in the number of addresses holding 10,000 to 100,000 SUSHI soon after the launch. Since March 24th, an estimated 15 new mid-sized whales have joined the network representing an 8.10% increase in a short period.
Other lending or margin trading platforms cannot trade high-risk assets due to their susceptibility to the entire pool leaving many volatile tokens unused in margin trading offerings. Kashi solves this issue by supporting the usage of high-risk assets for margin transactions.
Along with being able to short a larger selection of volatile tokens, users can create short leveraged positions too. The transaction fees are paid to Sushi xSUSHI holders providing users with an additional layer of benefits from the Kashi platform resulting in a higher trading volume on the associated swap pool.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.