Analyzing Fees Generated Sushiswap Kashi Markets On Ethereum & Polygon


What is Sushiswap?

SushiSwap is an automated market maker that uses UniSwap’s code. Users can swap cryptocurrencies, borrow, and receive rewards on a platform that runs on Ethereum.

With SushiSwap, users can buy and sell different cryptocurrencies between themselves, like on a traditional exchange.On SushiSwap, tokens are supported by smart contracts rather than a single central entity, and users lock crypto on the software which traders can then access.It should be noted that traders who trade locked assets pay a fee, which is then shared proportionately among all liquidity providers.

What is Kashi?

Sushiswap’s BentoBox is like a high-security vault that gives you a return for investing in securing your assets. As soon as a user deposits their Sushiswap’s tokens in to BentoBox, those tokens will start generating yield whenever they are lent out to other users through BentoBox’s flash loans and other applications that are developed on top of that platform.
The Kashi Dapp is one such Dapp that has been developed by the core Sushiswap team based on BentoBox and designed on top of it. As part of its lending protocol, Kashi has enabled margin trading through the creation of lending token pairs, which will result in a higher return on investment.


Let us talk about the methodology used for computing the fees as well as define what we mean by fees. In this analysis we would like to present you two types of fees – Gas Fees spent by users for interacting with Kashi pool as well as xSUSHI rewards generated.

  • Gas Fees: Every blockchain transactions requires gas to execute. For interacting with Sushiswap on Ethereum blockchain, users pay fees in ETH tokens and Polygon blockchain, users pay fees in MATIC tokens.
  • xSushi Rewards: All transactions on Sushiswap carry a 0.3% of fees and it is distributed to xSUSHI holders, the SUSHI swap token holders who stake their tokens for securing the ecosystem.

Here is the methodology we followed to compute the gas fees as xSUSHI rewards fees.

  1. Identifying all Sushiswap transactions related to borrowing and lending on Ethereum & Polygon blockchain
  2. Compute gas fees by locating their corresponding records on transactions tables in Ethereum & Polygon blockchain
  3. On total transaction volume computed per pool, calculate 0.3% xSUSHI Rewards


The following chart shows the top 10 pools used by borrowers on Ethereum along with the Gas Fees paid as well as rewards generated for xSUSHI token holders. The top pool “SUSHI-USDC” generated around 750$ as rewards where as collected 293$ towards Gas Fees. The second pool in the list is ETH-USDT.

The picture of Lending pools on Ethereum is shown on the chart below. Again SUSHI/USDC pool stands out the top followed by USDC/NMR and AAVE/DAI.

How is the situation on Polygon blockchain! Well, the activity on Polygon blockchain is very low for couple of reasons. The Polygon suburb has become quite with crypto winter setting and also in general slow down in economic activity in Defi is impacting polygon. The following chart shows the borrowing activity on Polygon blockchain for top 10 pools along with the gas fees and rewards generated by them.


Here are the observations

  1. Activity on the Ethereum blockchain for the past 90 days has gone down significantly compared to the the boom we have seen late 2021
  2. SUSHI/USDC is the top pool used by borrowers on Ethereum blockchain, where as WETH/USDT is the top pool on Polygon blockchain.
  3. Again SUSHI/USDC is the top pool for lenders on Ethereum blockchain, where as WETH/USDC is the top pool on Polygon blockchain.

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