The team behind decentralized exchange SushiSwap will shut down two of its products as the entity focuses on realigning its priorities in 2023.
In a Twitter thread on Dec. 29, SushiSwap CTO Matthew Lilley said that the team had decided to close down the lending protocol Kashi and token launchpad Miso.
We made the decision to deprecate Kashi (Sushi Lending) and Miso (Sushi Launch Pad).
1. Kashi for a number of reasons, had a number of design flaws, ran at a loss, and had a lack of resources to dedicate to it.
2. MISO, had a lack of resources.
— I'm Software 🦇🔊 (@MatthewLilley) December 28, 2022
Lilley said that the decision to sunset Kashi was for a number of reasons, including inherent design flaws, a lack of resources and the fact that it was running at a loss. Meanwhile, he said the reason for Miso being shut down was solely due to a lack of resources.
“We have the plan to launch successors of these products in the future once we have the resources to dedicate product teams towards them, but believe that requires focusing entirely on the breadwinner at the time being which is inarguably the DEX,” tweeted Lilley.
According to him, the team realized there was a strong need to prioritize in the third and fourth quarters of the year and decided to focus their efforts on improving the flagship product itself.
Signs that Sushi was grappling financial hurdles was brought to light in early December, when “head chef” Jared Grey revealed that the Sushi Treasury had just 1.5 years of runway left.
At the time, Grey proposed diverting staking rewards from xSUSHI holders to the Treasury as the quickest way to return Sushi to a competitive level.
Shifting focus back to the DEX itself could be just the thing that the team needs to build back momentum going forward. According to data from DeFi Llama, SushiSwap had around $393 million in Total Value Locked as of Monday – a significant reduction from $8 billion TVL it had in November 2021.
“We have an interesting surprise and some interesting incentive re-alignment at the DEX level which leans on our strengths and strengthens our position I believe,” said Lilley.