To focus on DEX, DeFi Protocol Sushi to close lending product <br><br><br>

DeFi Protocol Sushi to close lending product

To focus on DEX, DeFi Protocol Sushi to close lending product

Sushi, a popular decentralized-finance application, will close down two of its products to make the protocol more profitable and sustainable.

Matthew Lilley, Chief technology officer, shared in a post on Twitter last week that the two of their products, a launchpad for external tokens, MISO and Kashi lending platform, will be closed soon due to the low public interest and the higher efforts that are put into maintaining the two.

Lilley said, “We made the decision to deprecate Kashi (Sushi Lending) and Miso (Sushi Launch Pad).” He also informed that in the future, yet-unnamed “successors”  to these two closed products would be launched once Sushi has enough resources to sustain their functioning efficiently.

He further said that the developers of Sushi would put their entire focus on the decentralized exchange (DEX) products and their protocols. “In Q3/Q4, it became obvious that there was a strong need to prioritize, and we decided to focus on ideas to improve our most-loved and profitable product, the DEX, SushiSwap,” he said.

According to DefiLIama data, on Tuesday, SushiSwap, the DEX estimated to have over $390 million in its locked token value. However, some $280 of which has been locked on Ethereum-based assets.

On the other hand, over $800,000 are locked in Kashi’s locked assets, according to data, and there is poor demand for lending products. During the 2021 peak, it had almost $40 million and has seen gradual outflow since then.

For crypto lenders, last year was difficult, with centralized companies such as Voyager digital and Celsius network registering for bankruptcy after the yield on Defi was almost dried up.

Sushi developers proposed and planned to change the protocol to create and own long-term viability. 

From the first week of December, sushi treasury has provided for only 18 months of runway calculated, which has caused a significant deficit in its treasury. Until new reward schemes and token distribution are implemented, Jared Grey, lead developer, has proposed setting a fee-division protocol, Kanpai, to 100% of fees diverted to the treasury multisig for a year.

Gray proposed fee burns, token buyback, and reward plans to the Sushi community. The proposal has been discussed actively online.

If you want to be in the know about all things blockchain and cryptocurrency, then be sure to subscribe to our weekly newsletter. You’ll always have access to the latest and greatest information because our blockchain consultants are constantly updating our blockchain knowledge base with new reports and insights. Plus, you can use our Knowledge Base as a resource for anything you need related to blockchain technology.