A new sign that times are tough for SushiSwap? The decentralized finance (DeFi) protocol has just announced that its Kashi lending service, as well as its Miso launchpad, will cease to be available. Back to the reasons for this choice.
SushiSwap stops some services
The news was announced by Matthew Lilley, the technical director of SushiSwap, on the occasion of a review of the year 2022. He explains that the Kashi lending service, as well as the Miso launchpad were not the most profitableand that it was therefore decided to stop them:
We made the decision to deprecate Kashi (Sushi Lending) and Miso (Sushi Launch Pad).
1. Kashi for a number of reasons, had a number of design flaws, ran at a loss, and had a lack of resources to dedicate to it.
2. MISO, had a lack of resources.
21/24
— I’m Software 🦇🔊 (@MatthewLilley) December 28, 2022
According to the CTO of SushiSwap, Kashi had some design flaws, and did not allow the company to make money. As for Miso, he did not have enough internal resources. The idea is to “focus only on the main source of incomefrom SushiSwap, i.e. the decentralized exchange (DEX) platform.
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SushiSwap in financial difficulty
It is not the first time that we observe SushiSwap’s financial difficulties in a difficult context for all crypto businesses in recent months. The decentralized finance protocol, through the voice of its CEO Jared Gray, let it be known last December that it did not have sufficient resources to operate in the long term. He explained thus:
“Sushi has currently distributed nearly all of its token supply and needs to capitalize on new opportunities to diversify its hoard and provide the necessary liquidity for the continuation of its operations.»
He then affirmed that the reservations of the protocol only allowed it to operate for a year and a halfa situation which, according to him, requiredimmediate actions“. Closing the lending and launchpad services is therefore a move in this direction.
In any case, the news shows the difficulties that DEXs have to exist, and to make their protocols work in the long term. The future of SushiSwap therefore seems uncertain for the moment.
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Source: sushi.com
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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