Relying On DEX SushiSwap And Dropping Kashi & Miso, DeFi Protocol Sushi

Matthew Lilley, CTO of Sushi, recently shared on Twitter about the company’s progress in 2022. The main focus has been on improving the decentralized exchange (DEX) SushiSwap.

In Q3/Q4 it became obvious that there was a strong need to prioritise, and we decided to focus on ideas to improve our most loved and profitable product, the DEX, SushiSwap. This meant realigning our priorities.

19/24

— I’m Software 🦇🔊 (@MatthewLilley) December 28, 2022

The decision was made to discontinue certain products due to a lack of resources and prioritization. This was due to the larger priority of SushiSwap and the limitations of the team’s size. It was not practical to continue maintaining these products at the expense of SushiSwap.

The company discontinued Sushi Lending, “Kashi,” and Sushi Launch Pad, “Miso.” Therefore, because Kashi had several design flaws, was unprofitable, lack of sufficient resources, and Miso did not have adequate resources.

Lilley said the company plans to reintroduce these products in the future once they have sufficient resources for dedicated product teams. But, for now, the main focus is the DEX, which is the most successful product.

As of now, SushiSwap’s DEX holds over $381.48 million in locked token value, with $271.72 million of that in Ethereum-based assets, according to DeFiLlama.

On the other hand, Sushi Kashi has only about $851,725 in locked assets, with just about $685.89k in Ethereum-based assets, indicating low demand for the lending product.

Furthermore, Lilley said that concentrated liquidity was a priority to keep up with the automated market maker (AMM) sector. The product is almost finished and will be released in Q1 2023, but the current version is no longer effective.

Lilley announced that the DEX-level incentives would be updated with a surprise feature and changes that will enhance the company’s capabilities and improve its position. These updates will be covered in the Q1 2023 roadmap thread, which will be released soon.

Developments Of Sushi In 2022

Trident was launched in the first quarter of 2022 as a preview on Polygon and has expanded to 8 networks. However, the team learned that Trident faced several challenges, including a lack of competitive pool types and a lack of internal aggregation support.

Sushi’s 2022 Development Recap

What we did.

What we learned.

What we’ll do next.

👇

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— I’m Software 🦇🔊 (@MatthewLilley) December 28, 2022

Despite the launch of Trident, the Sushi AMM experienced decreasing volume throughout the year due to a combination of the global economic climate, diminishing $SUSHI incentives, and a lack of competitiveness compared to other AMMs like Uniswap V3 and Curve.

The team recognized the need to enhance the AMM in various ways based on its value propositions. As a result, they integrated ‘Tines,’ Sushi’s proprietary pathfinding engine. They conducted research and development to integrate a stable pool analog called ‘Solidly,’ released in the third quarter.

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Furthermore, the sushi 2.0 stack is a complete rewrite of the GUI and infrastructure layer of the Susi application. In addition, it was also launched in Q3 2022 after being in development for the entire year. The goal of this major project was to create a foundation that was tailored to the company’s needs.

Lilley said:

The architecture of the Sushi 2.0 stack was designed to improve product shipping velocity and quality. It’s a work in progress, but I think we’re on track, and we are happy with its progress.