SashimiSwap Launched Decentralized Money Market Protocol — Sashimi Lending
SashimiSwap launched its liquidity mining in September 2020. Since then, the total value locked of the platform has reached $500 million at the highest point. But SashimiSwap did not sop there. It soon launched version 2.0.0, 2.1.0 and 2.1.1, adding various new features such as investment, exchange and double farming, aiming to multiply the passive income of the liquidity providers and maximize the utilization of liquid assets.
As the DeFi market gets more popular, many users have a strong demand for lending. At the same time, in order to expand the investment options of users and further improve the utilization of liquid assets, SashimiSwap v2.2.0 has a further update, adding a decentralized lending service — Sashimi Lending.
Users can use Sashimi Lending here: https://sashimi.cool/lending/#/
Sashimi Lending is a decentralized money market protocol based on interest rate algorithm. Sashimi Lending smart contract defines the interest rate model for user deposits and borrowings through algorithms. Users can deposit assets in the market, or stake assets to borrow from the market at any time. Depositors can get annualized income, and borrowers need to pay a corresponding interest. The platform provides deposit and borrowing services with current and floating interest rates.
Sashimi Lending does not need peer-to-peer transactions, which can avoid various problems such as difficulty in matching, poor experience, high threshold, insufficient market liquidity, etc.. The friction cost between borrowers and lenders were reduced, and the user’s digital assets showed their time value. Sashimi Lending’s interest rate model is determined by the supply-demand relationship of the market, achieve fast and efficient transactions by cutting the middlemen, removing borrowing time and operation restrictions.
How to use Sashimi Lending?
Initially, Sashimi Lending will launch the Supply Market and the Borrow Market of eight tokens, including DAI, USDC, USDT, ETH, WBTC, YFI, ELF, SASHIMI. Lenders and borrowers deposit tokens into Sashimi Lending’s smart contract as the underlying assets.
After the user deposits these assets, the system will return a certain amount of slToken to the user according to the exchange rate. If the user deposits ETH, he will get slETH. The withdrawal of underlying assets also needs slToken.
For depositors, users can select the asset category to be deposited in the Supply Market asset list, and then enter the deposit amount to complete the deposit. Subsequently, interest will be accumulated over time according to Supply APY. The depositor can withdraw principal and interest at any time, but the assets that have been used for stake lending cannot be withdrawn.
For borrowers, users can borrow money in the market after overstaking. Sashimi Lending determines how many assets a user can borrow based on the amount of collaterals. In the Borrow Market asset list, the user can select the asset category to be borrowed, and then enter the loan amount to complete the loan. Subsequently, interest will be accumulated over time according to Borrow APY. After authorization, the borrower can repay the loan at any time, and the principal and interest should be repaid.
The lending rate determines the annualized income of the depositor or the annualized interest of the borrower. When the assets in circulation are sufficient, the interest rate will decrease; when the assets in circulation decrease, the interest rate will rise, which stimulates users to borrow and deposit to a certain extent.
Sashimi Lending has a liquidation mechanism. The price of staked assets will fluctuate. When the staked assets of the borrower are insufficient to pay the outstanding loan due to price fluctuations, account liquidation will be triggered. The staked assets will be sold by the liquidator at an agreed discount price to repay the loan. The price discount is an incentive for the liquidator. The liquidation incentive is a constant in the smart contract.
What’s special about Sashimi lending
SashimiSwap has always been committed to creating a highly innovative decentralized exchange with the highest capital utilization rate for users. Version 2.1.0 builds a complete DeFi integrated platform through the interaction among multiple components of Exchange, Farm, Investment, Vault, and Governance.
The launch of Sashimi Lending makes the SashimiSwap ecosystem more perfect. At the same time, it can interact with other components and create more ways to use: The lending market participants can get SASHIMI from their yield farming and achieve double returns. In the future, the triple returns will be realized in the interaction between Sashimi Lending and Investment.
In other words, depositors can not only get interest income calculated according to the Supply Rate, the platform will also automatically put their deposited assets in Sashimi Farm to earn the farming reward SASHIMI. This part of $SASHIMI will be allocated to the lending market of each token, and the distribution ratio will change dynamically based on the interest generated in that market.
It is worth mentioning that sashimi lending has already started its loans and farming when it went online on December 15. Users can obtain SASHIMI by depositing or borrowing. 100% of the assets in the lending market will be used for yield farming and can collect 10% of SASHIMI rewards. This cannot only improve the passive income of users, but also increase the SashimiSwap’s TVL, so as to bring real benefits and better service for the community.
In addition, in order to avoid the centralization and simplification of data sources for oracle pricing, and the short-term manipulation of the information sources that oracles rely on to mislead the onchain price, Sashimi Lending adopts the aggregate prices of several major exchanges and compares them with the anchor prices of decentralized exchanges before feeding them, so it is more secure.
In the future, we will continue to improve SashimiSwap with the vision of “Multiplying the passive income of the liquidity providers”. It is planned to implement the following features in the near future: the interaction between sashimi lending and investments, adding a page to display the lending market parameters, and upgrading the sashimi lending page to new UI with new style. Stay tuned!
