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.
— 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.
👉 Find our guide – What is DeFi? All about decentralized finance
The best way to secure your cryptocurrencies 🔒
🔥 The world leader in crypto security
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.
👉 Listen to this article and all other crypto news on Spotify
Progress in the world of cryptocurrencies with Cryptoast experts 📘
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.