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.
Lending & Borrowing Activity on Kashi App Deployed to Ethereum & Polygon
Let us explore the lending and borrowing activity on Kashi across two blockchains – Ethereum and Polygon. Flipside Crypto makes it easy to explore the data through their curated datasets very specific to Sushiwap’s lending & borrowing activities. The following chart shows the lending & borrowing volume on Sushiswap across Ethereum & Polygon.
Oh my! Did you see that? The real crypto winter is here! We see volume in 5 digits. What happened all those whales taking millions of dollars of loans in a single transaction?? Looks like they are all either culled or hibernating to survive the winter. The max amount lent since June 2022 was recorded on July 5th and it was about 100K.
The number of transactions are looking terrible. They are mostly on single digits with one day seeing lower two digit transactions.
Ok, now let us look at the stable coins and try to understand what are the preferred stable coins. The USDC is the most favorite stable coin for lenders to use it as a collateral! Also most of the volume is tracked on Ethereum with small traces on Polygon blockchain.
How about those lending money in this crypto winter? Well Ethereum is their favorite chain and USDC is their de-facto token to lend it out! The second popular stable coin is DAI on Ethereum. And again the lending activity on Polygon is very low.