Have you ever seen a BentoBox? Maybe you’ve even eaten one, but in case you are unfamiliar, a BentoBox, in Japan, is a small container filled with the usual dishes that make up a Japanese lunch. Hence the product name, Sushi’s BentoBox is a token vault that can support a collection of Dapps. Users can interact with these many Dapps in a gas-efficient manner, by leveraging the benefits of using a mutual token vault. On the other side of the coin, developers can even take advantage of the power of BentoBox, as it allows for the deployment of contracts at a lower cost, thanks to its gas efficient infrastructure, so developers can focus on what really matters, building.
Further, the BentoBox is a token vault that can support a multitude of Dapps within it. Dapps that are built within BentoBox can save their users, people like you, on network wallet fees, since tokens are already approved for use within the vault. A more exciting point, too, is that BentoBox algorithmically generates yields for depositors.
Users who deposit their tokens into this innovative vault will passively earn yield on their assets, completely automatically! This is made possible by strategies applied to BentoBox. You can think of a strategy as a type of map that lays out the paths that held assets will safely take, while held in the vault, to earn added interest through other protocol tools. At the time of writing, the current strategy applied to BentoBox is the Sushi strategy. This means that our powerful token vault will automatically ensure that held assets are taking advantage of all available yeild-generating tools on the Sushi platform, while performing their intended actions within the apps of BentoBox.
For example, you may want to make some interest by lending the $SUSHI token on Kashi. Yes, single asset lending is a thing on Kashi! But you might also not want to take out your staked $SUSHI from the SushiBar. BentoBox is the answer to: Why not both? Yes, by depositing your assets, such as $SUSHI tokens, into your BentoBox allows you to make 2x use of your cryptocurrencies. Create your vault simply by connecting your wallet, selecting the token you wish to deposit and transfer your desired balance to BentoBox here. Additional community-approved strategies will be added.
Speaking of staking, our xSUSHI holders benefit from this new vault by returns generated from transaction fees accrued from the use of BentoBox assets for margin trading activities such as flash loans.
The innovation of the BentoBox lies in its effortlessly scalable design. Its scalar design allows BentoBox to serve as the future infrastructure for forthcoming DeFi protocols on Sushi. Unlike other protocols, it creates a primary source of liquidity that any user can access with minimal approvals, minimal gas usage, and maximal capital efficiency.
Three Ways That The BentoBox Will Upgrade DeFi
#1 Unprecedented Gas Efficiency
The Ethereum Network has faced increasing and inconceivable network congestion, resulting in barrier-inducing fees that affect any operations.
The BentoBox was created specifically to give developers a new yield generating platform where they can build Dapps without concerning themselves with gas optimization strategies through its gas cost efficient infrastructure and the same, if not better, functionalities to create an optimal user experience. The vault is constructed in such a way as to allow minimal actions to be taken by the developer and the end user to complete actions.
For instance, approving the BentoBox access to your wallet’s tokens only one time and depositing them into your vault, allows those deposited assets to be used in any of the other Dapps within BentoBox, without needing to approve your wallet’s token access transaction ever again. In addition to creating savings on gas fees, the BentoBox’s design will allow projects who integrate with the BentoBox to become interconnected through it, by providing synergies between protocols, another way that Sushi prides itself on harnessing the value of network effects.
Sushi’s core frontend developer, Omakase, described BentoBox as: “A layer 1.5 solution, where everything has been put into one token vault.” This means, for tokens inside the BentoBox, the smart contract interaction costs will be significantly lower. Additionally, the BentoBox has been designed to be developer-friendly, so that creators who are new to the Sushi community can feel comfortable even when first exposed to this new technology.
#2 Passive Income Generating Tool
Tokens deposited in the BentoBox may be lent out to flash loan borrowers and to vaults to receive interest on the principle. This interest is then distributed across all of the token depositors.
As mentioned above, the Bentobox is a yield-generating token vault with community-approved yield strategies in place. Anyone can add liquidity, and anyone can build on top of it. The Bentobox will algorithmically transfer the liquidity to earn passive income from our a multitude of yield strategies via protocols like Cream and Compound, and of course, as mentioned, our very own Sushi strategy.
#3 A New Kind of Ecosystem
The BentoBox, as a platform, launched its first lending product, Kashi. Soon, there will be more Dapps built on top of it, as the BentoBox is permissionless, and thus allows anyone to do so.
Projects that build on top of BentoBox enjoy these privileges:
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Extra yield from flash loans,
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Extra yield from strategies,
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Optimized deposit, withdraw and skim functions that auto-convert ETH to WETH,
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Low gas (and fixed gas) transfers of tokens within the BentoBox,
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Simplified approval of tokens (no need to re-approve for each protocol)
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Minimal proxy contract factory build in. No need to roll your own.
To encourage platform growth and further expose its benefits, Sushi will soon host a hackathon in the honor of BentoBox. We look forward to asking developers to build with us, and bring in even more creative minds to expand this great innovation to unprecedented heights.
If you would like to know more about the forum proposal for the BentoBox/Kashi hackathon please click here.
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