•SushiSwap has announced plans to shut down Kashi, its lending protocol, and Miso, its token launchpad.
• The move comes as the platform has faced significant financial uncertainty in recent months.
• SushiSwap CTO Matthew Lilley said in a tweet that Kashi “had a number of design flaws, ran at a loss, and had a lack of resources to dedicate to it.”
• However, he said that Miso merely suffered from a “lack of resources.”
SushiSwap has made the announcement to cease operations of Kashi and Miso, two associated protocols. Kashi was a lending protocol that allowed users to earn interest on their crypto by supplying funds to SushiSwap’s automated market maker. Miso was a token launchpad that powered the creation of new blockchain projects and provided distribution services for those projects.
These protocols were a part of SushiSwap’s broader vision geared towards decentralized finance (DeFi), but the team ultimately decided it was best to focus exclusively on AMM-based products as well as upcoming integrations with layer 2 solutions such as Optimistic Rollups. The decision is signaling that the SushiSwap team is serious about further disrupting defi through strategic reprioritization and innovation.
We made the decision to deprecate Kashi (Sushi Lending) and Miso (Sushi Launch Pad).— I'm Software 🦇🔊 (@MatthewLilley) December 28, 2022
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.
Kashi was a decentralized exchange built on top of Ethereum that allowed users to trade tokens with low fees. Unfortunately, due to design flaws in its smart contracts, Kashi experienced significant operational losses leading to its closure in February 2021. It left many investors with their funds locked up in the exchange with no way to access them.
The closure of Kashi has had a negative impact on users as well as the ecosystem at large. Many users lost their investments due to design flaws that led to significant operational losses for Kashi. This has resulted in the loss of user trust for SushiSwap as a whole, which has made it difficult for them to attract new users or retain existing ones.
In order to restore user trust and rebuild confidence in its platform, SushiSwap is committed to improving its protocols by developing safer and more secure solutions for launching tokens on its platform. They are also actively looking into ways they can help those who were affected by the closure of Kashi recover their lost funds.
In the past 12 months, Sushi has experienced a 30M USD loss in its emissions-based reward strategy to bootstrap liquidity & incentivize LPing; Sushi spends more on emissions than swap volume generated. 3/— Jared Grey (@jaredgrey) December 11, 2022
Miso was an automated market maker (AMM) launched by SushiSwap in December 2020 that allowed users to launch tokens without paying any fees or additional costs associated with listing tokens on other exchanges. However, due to a lack of resources and liquidity issues, Miso was shut down earlier this year in March 2021.
The closure of Miso has limited options for launching tokens on the platform but there are alternatives available such as Uniswap which offers similar services for launching tokens without incurring any additional costs or fees associated with listing on other exchanges. It remains unclear what impact this will have on SushiSwap’s popularity but it is likely that some users may be hesitant about investing given recent events leading up to the closure of both the Kashi and Miso platforms.
Despite recent events leading up to the closure of both Kashi and Miso platforms, SushiSwap remains committed to its users and securing their investments while also continuing development towards building a more secure platform for launching tokens without incurring additional costs or fees associated with listing on other exchanges. Through improved protocols, increased security measures, better liquidity management strategies, and more efficient token issuance solutions; Sushi Swap is working hard towards restoring user trust while also providing useful solutions for blockchain-based businesses around the world!