Historical bad-debt events
Sushi (SushiSwap) — v2 + v3 + Trident + BentoBox/Kashi + SushiXSwap's assessment for RD-F-067 — scored red on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
Kashi/BentoBox lending has documented and ongoing bad debt. Reported aggregate outstanding debt on Kashi: approximately $100M that 'may never be repaid' per multiple corroborating secondary sources (Cryptopolitan, Binance Square). The Kashi protocol was deprecated by SushiSwap CTO in early 2023 (cited: poor design, lack of resources) without bad-debt socialization. Lender funds are stranded: deposits and withdrawals are not accessible through any active interface; smart contracts continue accruing interest on stale positions. The November 2022 exploit (KashiPairMediumRiskV1 stale exchangeRate) caused documented direct losses of at least $120K (USDC + MIM) with potentially dozens of affected pools. No recovery mechanism, insurance, or socialization was implemented. This is a live, unresolved bad-debt event that destroyed real lender value. Red (documented bad debt with no recovery path).
Sources #
- URLThe Block — SushiSwap deprecate Kashi and MISOThe Block: SushiSwap CTO announced deprecation of Kashi and MISO in early 2023; poor design + lack of resources citedretrieved 2026-05-17
- Binance Square — SushiSwap bad debt Kashi LendingCryptopolitan / Binance Square: ~$100M bad debt on Kashi Lending accruing; protocol abandoned early 2023; lender funds frozenretrieved 2026-05-17
- BlockSec — Kashi KashiPairMediumRiskV1 Logic BugBlockSec Medium: KashiPairMediumRiskV1 stale exchangeRate exploit, Nov 2022; documented losses 9,466 USDC + 110,911 MIMretrieved 2026-05-17
Methodology #
Count and sum (USD) the number of documented bad-debt events where the protocol socialized losses across depositors.
See the full factor methodology and distribution across all protocols →