BentoBox, to launch and beyond

The BentoBox

  • Once a token is approved for the Vault, any protocol built using BentoBox doesn’t need per token approval anymore.
  • Low flat gas fees for internal token transfers (even between different protocols using BentoBox) and advanced transfers such as one-to-many transfers.
  • Funds of users and protocols are separated internally. Only protocols that the user approves can access the user’s funds.

BentoBox Lending

  • Anyone can create a lending pair with one asset token and one collateral token with a specific oracle.
  • You can earn interest by supplying the asset.
  • You can borrow the asset by supplying collateral.
  • The target utilization is between 70–80%. This is the percentage of assets that are borrowed from the total supplied.
*Interest rate changes compound when accrue is called, then it will move faster. This is the linear time when no transactions happen on the pair.
  • The elastic interest rate moves up if the pair is underutilized and down if it’s over-utilized. The further it is from the target, the faster the interest rate will move. At 100% utilization, the interest rate will double every 8 hours. *
  • When a user is up to 2% insolvent, the position can be liquidated against any approved ‘swapper’. Currently, there is one approved swapper for SushiSwap. The proceeds of the liquidation go 90% to the asset suppliers, 9% to the SushiBar and 1% to the developer (BoringCrypto).
  • When a user is more than 2% insolvent, any user can liquidate the position and get the full 12% liquidation fee. There are several ways to liquidate, including a flash liquidation (or optimistic liquidation) that will give you the collateral and you have to repay the debt before the end of the transaction.
  • Short functionality allows you to leverage a position by borrowing any amount of the asset, swapping it to collateral and depositing the collateral. As long as your position is solvent in the end. Unwind does the opposite.

Oracles

SushiSwap TWAP (Time Weighted Average Price)

Compound Open Price Feed

Chainlink Oracles

Benefits to Sushi Holders

  • A flat borrow fee of 0.05% of the borrowed amount as the funds are borrowed. All of this goes to the asset suppliers.
  • Compounding interest paid by the borrower. 90% of this goes to the asset suppliers, 9% goes to the SushiBar and 1% goes to the developer.
  • Profit made from “closed” liquidations. 90% of this goes to the asset suppliers, 9% goes to the SushiBar and 1% goes to the developer.

Launching BentoBox Lending

The Road Ahead

Teamwork

Lending Improvements

LendingPair variants

More Oracles

  • Uniswap V2 TWAP oracle — this is the same as the SushiSwap one
  • xSUSHI oracle — this would allow xSUSHI to be used as collateral
  • SLP TWAP oracle — this would allow for SushiSwap SLP tokens to be used as collateral. (same could be done for Uniswap LP tokens)
  • cToken oracle — this would allow Compound Finance cTokens to be used as collateral, so you can farm COMP tokens on Compound and get interest as well as provide liquidity on BentoBox Lending. (Same can be done for C.R.E.A.M., Aave, etc…)
  • Multiple feed oracle — Combine multiple feeds, such as SushiSwap, Compound and Chainlink
  • Multiple AMM TWAP oracle — Combining the TWAP of SushiSwap and UniswapV2 into a single oracle.
  • BentoBox asset supply token oracle — this is getting a little meta, but there are some interesting use cases for this for the larger pairs.

Issue Synthetic Assets (such as Stablecoins)

SushiSwap V2

  • Adding new pairs becomes much cheaper.
  • Any rebasing token that supports the BentoBox Plus will support all pairs with that token.
  • Extra income from putting idle capital to work.
  • Extra income from flash loans.

BentoBox Plus

Flash Loans

Support for rebasing tokens.

Strategies

ERC1155 Support

NFT Support

The BentoBox eco-system

Capital Efficiency

Layer 2 — Scaling DeFi

Exciting Times Ahead

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BoringCrypto

BoringCrypto

I read smart contracts for fun...