SushiSwap’s native SUSHI token has surged more than 200% this month. It briefly made a new all-time high as the team prepares to launch a new service called BentoBox.
SUSHI briefly surged past the $9 mark to break the previous all-time high of $8.84 according to CoinGecko. The hot price action comes as the SushiSwap team prepares to launch its next product offering, dubbed BentoBox.
SushiSwap began its life as a hard fork of the DeFi platform Uniswap. Uniswap is one of the best-known platforms in the decentralized finance (DeFi) space.
Built on the Ethereum blockchain, Uniswap comprises numerous smart contracts that allow decentralized cryptocurrency exchanges. These exchanges, called ‘swaps’ happen instantly without the need for a third-party arbiter.
SushiSwap adds to this by bringing both governances and staking into the mix. Its governance mechanism allows SUSHI holders to vote on proposals for the platform’s development. Staking allows the platform’s liquidity providers to earn interest by lending to the ‘pools’ that facilitate these swaps.
SushiSwap Adds Features
Continuing on the sushi theme, the next development set to hit SushiSwap is called BentoBox. This upgrade aims to improve the way tokens are ‘stored’ on the platform.
Currently, each swap involves an asset and a denomination (i.e. WBTC/USDT). For a swap to execute, the platform hosts a unique smart contract, which means a different set of rules have to be defined for each one.
BentoBox proposes a ‘vault’ that contains a number of tokens. Once a token receives approval to be part of the vault, any swap could be created.
The team also suggests some additional benefits such as lower gas fees and “advanced” transfers.
The Great Re-adjustment
The DeFi space really started to take off in the summer of 2020. In fact, so many cryptocurrencies that back DeFi projects saw significant gains in value, that the community named the period “The Summer of DeFi.”
Projects such as Yearn Finance, Aave, and Compound saw large gains in value. Each is now worth over $1 billion by market capitalization.
Moreover, the total value locked (TVL) for the DeFi space, a measure of the value staked in all DeFi projects, soared past $20 billion towards to end of last year. TVL currently sits at over $25 billion.
All in all, the DeFi space is going through a “great re-adjustment” according to some in the community, meaning its true value is only just being unlocked.
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