Sushi launches Kashi Lending & Margin Trading Platform on BentoBox
BentoBox is a tokenized cryptocurrency vault that generates a return from flash loans and other protocols built from the strategies of its framework. It serves as “decentralized”App Store“where users can deposit assets to activate other Dapps. The main cause of excitement behind this new product is its revolutionary ability to maximize token yield generation through the use of two tokens. BentoBox enables tokens from his vault to be used on Dapps built on his infrastructure, such as earning flash loan returns on Kashi, while simultaneously earning interest in DeFi protocol farms, such as those made by participating in Onsen pools of Sushi.
BentoBox serves as a wallet for the Kashi margin lending and trading platform and an optimized solution for the time and transaction fees of the Ethereum network, a timely advantage with gas fees at their highest level. This results in short trades that can be done in a single trade with more than 1x leverage. However, to reiterate, the crucial role the vault plays is that it allows users to earn interest by lending their assets to traders on margin, while simultaneously earning a return on the same tokens by providing liquidity or money. by cultivating on DeFi protocols.
In order for users to participate and get the most out of their cryptocurrencies, they just need to add assets to the BentoBox vault and link the storage mechanism to Kashi. Users can then create the bid / loan pair of their choice to lend or choose from a wide range of tokens from a wide range of tolerances to short risk.
Kashi’s margin trading solution uses an elastic interest rate with a target utilization rate of 70-80% of the total supply. To put it simply, the elastic interest rate increases if the pair is underutilized and decreases if overused. This structure ensures that providers are incentivized to keep their supply of assets in demand on the platform, and conversely, the elastic rate keeps less attractive assets off the platform.
Members of the Sushi community have rallied around the release of BentoBox and Kashi as they offer traders a wide variety of tokens that are not yet widely available for short sale. This is due, in large part, to its isolated subprime loan pool framework. Similar margin lending or trading platforms are unable to support high risk assets due to the susceptibility of the entire pool. Since a single asset can greatly affect other cryptocurrency lending solutions, many have exempted volatile tokens from their margin trading offerings. Since Kashi is not prone to this type of susceptibility, he is able to stand out by taking on high risk assets for margin trades at traders.
Users will not only be able to short sell a larger selection of tokens with varying risk tolerances, but will also be able to create leveraged short positions. The fees associated with these transactions will be paid to Sushi xSUSHI holders, adding an additional layer of benefits for users of the Kashi Lending and Margin Trading Platform. These trades may result in a higher trading volume on the associated swap pool, which can be executed on Sushi.
Sushi is about to release both BentoBox and Kashi V1 on Tuesday March 16. The initial version of Kashi will include a set of pre-existing loan pairs that allow users to trade short. Further announcements regarding Kashi V2, which includes its interface for creating loan pairs, will be released in the coming weeks, according to The Source.