Kubo Documentation
  • Introduction
    • What is Kubo?
    • Why We Built Kubo
  • How Kubo Works
    • Overview
      • Mathematical Overview
    • Leveraged Long Trades
    • Repo Trades
    • Liquidity Pools
    • Stablecoin Vaults
  • Other
    • FAQs
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FAQs

PreviousStablecoin Vaults

Last updated 4 months ago

Who is the team behind Kubo?

Kubo is a product, the research and development arm of the Sushi DAO.

What are the risks associated with Kubo?

If a token's value rapidly changes before the liquidity pool has offloaded its exposure, it could cause a market failure. This would require an extreme move, like a 100x move within 24 hours.

  • If the price stays relatively stable —> the pool earns some yield

  • If the price suddenly spikes up —> the pool loses tokens proportional to recently opened trades

  • If the price suddenly crashes —> the pool earns tokens proportional to recently opened trades

What if no one takes the TRS trades?

The market maker would increase the TRS yield until it gets filled, which would equilibrate higher. Given their expected objective attractiveness, bots will likely capture TRS trades quickly.

Sushi Labs