At this moment there are only 4 non stable coin assets (WBTC, ETH, MATIC & AAVE) that are available to be lent or borrowed on Kashi.
According to Keno, this is because they are the only ones that have a Chainlink oracle on Polygon. I make up the story that Chainlink has those oracles because AAVE used their resources to get oracles for those limited pairs for the betterment of their platform. Kashi will be upgraded “soon” to use sushi TWAP, but I think that it would be worth it for sushi to pursue Chainlink oracles of other key DeFi blue chips on Polygon. Kashi has such potential to be earning revenue for xSushi holders (10% of all interest) but suffers from current lack of asset options. When combined with the fact that no one is really lending many stable coins on the platform (which allows for the leveraged trading all of us apes love) has Kashi barely tapping a fraction of its potential.
There have been so many flashloan attacks on bsc lately. These people can fork over to MATIC just as quick. I have my doubts that a Sushi TWAP is sufficient to secure Kashi pairs. Vitalik got me hyped for UNI when he made this post: https://gov.uniswap.org/t/uni-should-become-an-oracle-token/11988 I think we should pursue ways to go beyond just a Sushi TWAP to protect our KASHI.
With its cheap transaction fees, Polygon is the ideal environment for a thriving loaning economy with advanced strategies built on top of it. Yet, in a lot of ways it is neglected. For instance, try finding an easy to follow guide on how to use Kashi, let alone on Polygon. (My team is actually commissioning this)
Note: I have a vested interest. I am part of a team that designed a protocol, gemstones.finance that interacts with the Kashi lending protocol on Polygon. We would benefit from the ability to incentivize additional Kashi pairs, while giving the community the benefit of additional utility for their tokens. The fact that I can’t farm my Sushi on Kashi is shame. For now I am limited to stake my Sushi-ETH sushiswap LPs in my protocol and risk Impermanent Loss. Part of my vision for my platform was to better leverage my Sushi on Polygon through incentivizing stable coin lending pairs.
Let’s take this one step to a more thriving Kashi ecosystem.
- Sushi’s business development team should approach Chainlink about getting more Oracles on Polygon
- Sushi shouldn’t approach Chainlink, but instead should explore what Vitalik suggested for Uni or other creative solutions
- Sushi is fine the way it is