xSushi as Collateral - Where do the rewards end up?

Hello everyone!

Question on using my xSushi as collateral for a loan inside Kashi.

Currently, I’ve used my xSushi to loan on DAI, which has an excellent APR (for the moment). To my very basic and newbie-like understanding, the xSushi I have staked as collateral will still grow over time, but I’m a little mystified as to where it will go.

In other words… if my xSushi grows by 1 token…

  • Does that get added into my wallet (currently using Metamask)?
  • Does it go into the BentoBox?
  • Does it add it automatically to my deposited collateral? (doubt this, but want to ask)

Just would love to keep better accountability! Thanks team!!

Your xSushi balance won’t change but the underlying value of 1 xSushi <=> Sushi will continue to grow.

Oh! Thanks for the response. That is super interesting, to be honest.

So, when it reads that 1 xSushi is worth ~1.16 Sushi, is that a ratio (xSushi to Sushi) that stands independant from other holders? And the rewards are realized during the conversation back to “regular” Sushi?

Just looking to track and assess the rewards! Thank you kindly for this help!!!

Yes, when you will give back your xSushis, you will get more Sushis.
The sushibar is like a big pot, when you provide sushis, it gives you back xSushi as a share of this pot.
With time more and more Sushis are added to the sushibar (thanks to the fees) and so the xSushi share is worth more Sushis.

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I see! Now it’s clicking in my mind!

As a side note - as a relative newcomer to the space, I am absolutely blown away at the minds who created protocols/algorithms like this. So fascinating. Brilliant minds at work!!

hhk, thank you! Really thoughtful that you took the time to help bring me up to speed. I appreciate you!!!