Positions on Kashi are overcollateralized, meaning there is more collateral deposited than is being borrowed at any given point in time. Ensuring Kashi lending markets stay overcollateralized, even during extreme market volatility, requires the use of reliable price feeds to determine how much a user can borrow against their collateral and when unsafe positions should be liquidated. A Kashi loan position goes into liquidation at 133% collateralization, where the liquidator earns a 12% premium for paying down the debt in exchange for the user’s collateral.
Chainlink oracles provide a volume-weighted average across different centralized and decentralized exchanges, acquiring a global market price. Aggregated data of this type is not natively available on-chain, therefore, Chainlink fetches this data from data aggregators off-chain and delivers it on-chain using a decentralized network of node operators. Because the price data delivered by the oracle is used to keep the protocol solvent, it is extremely important that an oracle mechanism is highly secure and reliable at all times.
Chainlink is the most widely used and secure way to power universally connected smart contracts. With Chainlink, developers can connect any blockchain with high-quality data sources from other blockchains as well as real-world data. Managed by a global, decentralized community of hundreds of thousands of people, Chainlink is introducing a fairer model for contracts. Its network currently secures billions of dollars in value for smart contracts across the decentralized finance (DeFi), insurance and gaming ecosystems, among others.
Chainlink is trusted by hundreds of organizations to deliver definitive truth via secure, reliable data feeds. To learn more, visit chain.link, subscribe to the Chainlink newsletter, and follow @chainlink on Twitter.
Sushi.com provides a platform to maximize the value of your cryptocurrencies through decentralized finance tools such as yield farming, token staking and, now, margin trading via Kashi and BentoBox. Sushi is a community-driven decentralized exchange platform, which allows users, like yourself, to vote on ecosystem expansion initiatives and completely share transaction fee revenues with ecosystem participants. Sushi is responsible for making billions of dollars of idle assets earn secure, passive income through its DeFi ecosystem. To learn more, visit sushi.com, join our Discord or follow us on Twitter by searching @sushiswap.