Aiming to offer a wider net of margin assets, decentralized exchange SushiSwap has announced the rolling update of Kashi, a DeFi lending platform specifically designed for margin trading. The medium blog says:
We are so thrilled to announce that #whento is now a thing of the past and we are formally announcing the release of BentoBox on SushiSwap and the first lending and margin trading solution powered by BentoBox, Kashi!
With the aim of allowing the traders to borrow assets which is similar to other lending platforms, such as Compound or Aave, and BentoBox, it aims to enabling the users to earn interest from liquidity pools while utilising the same tokens while contributing to lending pools.
According to SushiSwap’s CTO Joseph Delong,
Kashi visions to come up with specialised puposes than other lending protocols, which will exhibit a wider range of assets for borrowing. It will perform the process by isolating risk between individual lending pairs, which otherwise means that the tanking of a particular asset, will not affect all the positions on the platform. Kashi uses specific lending pairs, while users on other lending platforms have to use a depositing asset as collateral to borrow any other asset. A user depositing Ether (ETH) into a vault with Wrapped Bitcoin (WBTC) will only be able to borrow WBTC, not other assets.
Anon-kun… #whento is over:https://t.co/ctbIy8Cu3j — SushiChef (@SushiSwap) March 26, 2021
Kashi is an isolated lending pair market. The reason most lending protocols are naturally conservative with the addition of collateral and borrow tokens is that the risk is pooled across the entire pool. With isolated lending pairs the collateral and borrow tokens are pool specific. So in the event of a failed liquidation only that individual pool risks insolvency.
Delong expects the release to be an “AMM moment for lending” where users will be able to “individually define markets that they find necessary” increasing capital efficiency across the lending market.
Expressing exhilaration for the rolling launch, Co-Founder of SushiSwap, 0xMaki said:
The community has been awaiting this moment since October we are today just releasing the first version of a product that will evolve on a rolling basis you can expect a lot coming next from Sushi. I strongly believe we were able to assemble one of the most passionate teams in DeFi. Our product pipeline is so filled we had to put Certora on a 3mo retainer for all our SC needs.