SushiSwap’s SUSHI token has increased 200% this month.
This increase comes as SushiSwap prepares for the release of BentoBox
A broader DeFi „readjustment“ is underway, causing the prices of many decentralized finance tokens to rise significantly.
SushiSwap’s SUSHI token has jumped over 200% this month. It briefly hit a new record, as the team prepares to launch a new service called BentoBox.
The SUSHI briefly surpassed $ 9 to exceed the previous high of 8.84 dollars at CoinGecko . The sharp rise in price comes as the SushiSwap team prepares to launch its next product offering, dubbed BentoBox.
SushiSwap started out as a fork of the DeFi Uniswap platform . Uniswap is one of the most famous platforms in the field of decentralized finance ( DeFi ).
Built on the Ethereum blockchain , Uniswap includes many smart contracts that enable decentralized cryptocurrency exchanges. These exchanges, called “swaps”, take place instantly without the need to call in a third-party arbitrator.
SushiSwap adds to this the intervention of both governance and staking. Its governance mechanism allows SUSHI holders to vote on proposals for the development of the platform. Staking allows the platform’s liquidity providers to earn interest by lending to the “pools” that facilitate these swaps.
SushiSwap adds functionality
Still on the sushi theme, the next upcoming development on SushiSwap is called BentoBox. This update aims to improve the way tokens are “stored” on the platform.
Currently, each exchange involves an asset and a denomination (i.e. WBTC / USDT). In order for a swap to be executed, the platform hosts a single smart contract, which means that a different set of rules must be defined for each.
BentoBox offers a “safe” which contains a certain number of tokens. Once a token has been granted permission to be part of the vault, any swap can be created.
The team also suggests a few additional perks, such as lower transaction fees and “advanced” transfers.
The great readjustment
The DeFi space really started to take off in the summer of 2020. A host of cryptocurrencies that support DeFi projects saw their value increase significantly, and the community called this time “DeFi summer. ”.
Projects such as Yearn Finance , Aave and Compound have seen their value increase considerably. Each of them is worth over $ 1 billion in market capitalization today.
Namely, the total blocked value (TVL) of DeFi space, a measure of the value brought into play in all DeFi projects, surpassed $ 20 billion towards the end of last year. The total value blocked currently stands at over $ 25 billion.
Overall, the DeFi space is undergoing a “big readjustment” according to some community members, which means its true value has only just been unlocked.