SushiSwap Launches A ‘Game-Changer;’ BentoBox’s 1st DApp Is Kashi Lending & Margin Trading
SushiSwap’s decentralized “App Store,” BentoBox, is here with gas optimization and the “revolutionary innovation in L1” that is Kashi, along with a proposal of a partnership with Red Bull Racing.
- SushiSwap has announced the release of its latest product BentoBox and “Kashi Lending & Margin Trading” on it.
- The market believes this to be really valuable to SUSHI which is an ecosystem offering AMM, lending, and now margin trading capability while token holders collect 50 bps on all fees.
According to a Managing Partner at Blockhead Capital, which is long on Sushi, unlike Uniswap, “SUSHI is a defi *ECOSYSTEM* not just an AMM, & the team seems committed to launching more apps. Its severely undervalued & rational investors would size accordingly.”
Trading at $16.48, Sushi is a $2.1 billion asset, while Uniswap has a $14.75 billion market cap as its token UNI trades at $28.55.
Adding to the excitement is the proposal of a four-year partnership agreement from Spring 2021 until Spring 2025. There are two separate packages for this, one for $21 million that involves the Sushi logo on the chassis of the Formula 1 cars, heavily promoted on social media, naming rights to the RBR campus in Milton Keynes, England, and hosting a full-time tech incubator on campus.
The partnership of $46 million involves all the branding opportunities and a lot more, including NFT/ Social Token, sponsoring a Red Bull Stratos level event in 2023, Sushi Bars at Formula 1 races, and direct sponsorship of the RBR technology campus.
Decentralized “App Store” is Here
Today, SushiSwap announced the formal release of BentoBox on SushiSwap along with the first lending and margin trading solution, Kashi, which the team says “delivers revolutionary innovation in L1.”
BentoBox has been defined as a “game-changer” and described as a vault that serves as a decentralized “App Store” to deposit assets to enable other Dapps.
Kashi, the Japanese word for lending, is the first Dapp within BentoBox that allows users to create lending token pairs.
Bento, here, stores tokens and generates yield from flash loans and strategies for protocols built on them. So, Bento holds the tokens, and Kashi utilizes those assets for lending, borrowing, and one-click leverage trading transactions. The team states,
“Kashi’s main purpose will serve to offer margin trading for a large variety of tokens that are not yet currently widely available for shorting.”
The margin trading solution uses an elastic interest rate with a target utilization rate of 70–80% for V1, meaning over 70% of a certain asset is expected to be used for flash loans at any given time.
By eliminating an unnecessary number of transactions, it lowers the overall gas fees, and this is the jackpot right here. Fees on the Ethereum network have been sky-high since last summer when DeFi exploded into the crypto scene.
As the Sushi team itself says, “With gas optimization on everyone’s minds, we know this is music to everyone’s ears.”
Sushi further offers the ability to maximize token usage and earn extra revenue by allowing the assets on Bento to be also used to provide flash loans, two things at once. Basically, “assets are never sitting idly at an opportunity cost.”
Kashi V1 is released today with a selection of primary lending pairs to take a stab at its margin trading without having to put up their own collateral. Supported token lending pairs are ETH/WBTC, SUSHI/ETH, ETH/UNI, AAVE/ETH, YFI/ETH, LINK/ETH, and ETH/COMP.
The latest product launch came with the hype of Kashi V2 already, which is coming soon with adding UI for liquidations powered by flash loans, activation of new lending pair creation interface, and allowing users to select their own oracles.