The BentoBox lending solution

Random unrelated picture of Sushi :P
  • Isolated lending pairs. Anyone can create a pair, it’s up to users which pairs they find safe enough. Risk is isolated to just that pair.
  • Flexible oracles, both on-chain and off-chain.
  • Liquid interest rates based on a specific target utilization, such as 75%.
  • Contracts optimized for low gas.
  • The supplied assets can be used for flash loans, providing extra revenue for suppliers.

Isolated lending pairs

The current solutions allow users to supply a variety of collateral assets and borrow another set of assets. If one of the assets were to drop in price faster than liquidators can react, every user and every asset is affected by this. So the risk to the platform is based on the risk level of the riskiest asset listed on the platform. This risk increases with every extra asset that is added, leading to a very limited choice in assets on most platforms.

Margin shorting any token

This will allow for the creation of thousand of lending pairs for any token, creating the ability to go margin short on a large variety of tokens. This is something that is in high demand, but currently not available for most tokens.

Flexible oracles

When a pool is created an oracle can be selected. I will provide 2 basic oracles, but the system can be extended and anyone could write a connector to an oracle. The basic oracles provided are:

Liquid interest rates

Ideally you’d prefer a high, but not too high supply to borrow ratio (e.g. around 75%). The current platforms try to achieve this by making the interest rate go up with increase utilization. The minimum and maximum rates are however fixed. So these platforms don’t optimize towards an ideal utilization. During very low or high demand the rates have to be adjusted manually to get the utilization rate corrected. When utilization hits 100%, withdrawals are no longer possible. This problem has occurred on several of the platforms.

Optimized for low gas use

Most of the current implementations use quite a lot of gas, making them useless to users with smaller portfolios during high gas prices. One reason for this is that the contracts aren’t optimized for gas. A more fundamental reason is that having multiple assets supplied/borrowed requires more computation that gets worse the number of assets you enable. More recently some platforms have integrated governance tokens. This adds even more gas usage to each interaction with the platform.

Areas of more research during development

These features aren’t guaranteed, but will be researched as part of the development.

Revenue generation

A set percentage (to be set and controlled by Sushi) of the lending LPs interest proceeds will be sent to the SushiMaker. These will be converted into SUSHI and served in the SushiBar to holders of xSUSHI.

Who am I?

  • Starting coding at the age of 6, hence 36 years experience coding in about every language and on every platform from large databases, accounting software to HFT and 3D engines.
  • Successfully built and exited multi-million dollar internet company.
  • Founder, architect and main coder on full CEX focused on security and transparency.

Background

Before I got involved helping out with Sushi, I spent weeks working on this lending solution. With the appointment of 0xMaki, ctrl and most likely OmakaseBar I feel confident about the future of Sushi and would be interested to bring this in under the Sushi brand.

Proposal

I will commit to delivering well tested (but not yet audited) solidity contracts closely matching the specs above. Slight changes may occur due to technical feasibility, but will be clearly communicated when encountered.

License

Code will be open source, but full copyright will be retained by BoringCrypto. A perpetual unrestricted license will be granted to Sushi but only for the use within the Sushi ecosystem.

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