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SushiSwap Introduces Crypto Lending and Margin Trading Platform

SushiSwap Introduces Crypto Lending and Margin Trading Platform

The major decentralized exchange, SushiSwap, detailed the launch of a crypto lending and margin trading platform via an official blog post. SushiSwap has announced the release of Kashi. It is a specialized lending platform developed explicitly for margin trading on the exchange. Kashi is the first margin trading platform designed on BentoBox. It would enable users to borrow funds from the protocol to put more significant bets on their choice assets. Kashi will depend on BentoBox, a highly-anticipated token vault, to help users produce yield from flash loans. 

Furthermore, the platform facilitates a wide variety of trading pairs that were not accessible before. Employing an adjustable interest rate with a “target utilization rate of 70-80% of the total supply,” Kashi makes high-risk assets available for margin transactions. Traders can short a wide selection of tokens and generate leveraged short positions. Kashi will help users earn the most out of their crypto by sending their tokens to BentoBox and linking the vault to Kashi. The users can develop the supply or borrow a pair of their choice or short a broad range of altcoins. Moreover, SushiSwap plans to release another iteration of the DEX in the following weeks.

SushiSwap’s Native Token Surges by 10% after the announcement of Kashi Platform

Joseph Delong, the CTO of SushiSwap, contends that Kashi intends to be more specialized than other lending protocols, enabling a broader selection of assets accessible for borrowing. It also isolates the risk between individual lending pairs. Thus, a drop in one particular asset’s value will not influence all the platform’s positions. While on other lending platforms, users placing an asset can employ it as collateral to acquire any asset listed, Kashi leverages specific lending pairs. A user depositing Ether into a vault with Wrapped Bitcoin (WBTC) will only borrow WBTC, not other assets.

Moreover, SUSHI, the native token of SushiSwap, increased over 10% after the Kashi platform’s news went live. It trades at $16 as per CoinGecko and has a market capitalization of $2.2 billion. Meanwhile, the Kashi upgrade is yet another fundamental driver for SushiSwap. It’s the fifth-largest DeFi app as per ‘total value locked’ with over $3.95 billion locked on the platform by yield-loving traders.

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