The popular decentralized exchange has revealed intentions to deprecate the Kashi lending system and Miso token launchpad.
SushiSwap, an Ethereum-based decentralized finance (DeFi) platform, has decided to stop down its Kashi lending technology and Miso token launchpad.
In contrast to centralized exchanges such as Coinbase, SushiSwap enables clients to swap, lend, and borrow cryptocurrencies using their own external wallets, such as MetaMask.
Matthew Lilley, the group’s chief technology officer (CTO), tweeted that Kashi “had a lot of design issues, operated at a loss, and lacked the resources to devote to it.”
Nevertheless, he said that Miso just lacked “resources.” Once the required resources are available, SushiSwap aims to develop new staking and launchpad products to replace the soon-to-be-defunct services, according to Lilley.
Lilley said that achieving this objective involves an emphasis on the exchange aspect of the business, which he defined as the “breadwinner” of the organization.
The decision comes after months of substantial financial uncertainty for the site. In a December update, the company disclosed that it has just 1.5 years of running expenses remaining, stating that “urgent action is required to assure adequate resources for ongoing operation.”
Jared Grey, the chief executive officer of SushiSwap, stated that the company has been pursuing a strategy that includes renegotiating infrastructure contracts, reducing “underperforming or superfluous dependencies,” and enforcing a budget freeze on expenses such as “non-critical personnel and infrastructure” in an effort to reduce annual expenditure to $5 million.
In the same month, Grey tweeted that the firm had lost $30 million in the past twelve months. Grey blamed losses on Sushi’s emissions-based incentives scheme and devised a strategy to match the platform’s total value locked (TVL) with its liquidity providers (LPs).
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