Another sign that times are tough for SushiSwap? The decentralised finance protocol (DeFi) has just announced that its lending service Kashi, as well as its launchpad Miso will cease to be available. A look at the reasons for this choice
SushiSwap discontinues some services
The news was announced by Matthew Lilley, SushiSwap’s CTO, in a 2022 year in review. He explained that the Kashi lending service, as well as the Miso launchpad, were not very profitable, so it was 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 was not making money for the company. As for Miso, it did not have enough internal resources. The idea is to “focus solely on the core revenue stream” of SushiSwap, i.e. the decentralised exchange platform (DEX).
SushiSwap in financial trouble
This isn’t the first time we’ve seen SushiSwap’s financial difficulties in a difficult environment for crypto companies as a whole in recent months. The decentralized finance protocol, through the voice of its CEO Jared Grey, announced last December that it did not have sufficient resources to operate in the long term. He explained:
Sushi has currently distributed almost all of its supply of tokens and needs to capitalize on new opportunities to diversify its treasury and provide the liquidity necessary for continued operations.
He said at the time that the protocol’s reserves only allowed it to operate for a year and a half, a situation he said required “immediate action”. The closure of the lending services and the launchpad is a step in this direction.
In any case, the news shows how difficult it is for DEX to exist and to keep their protocols running in the long term. The future of SushiSwap seems uncertain for the moment.
