FAQs
Who is the team behind Kubo?
Kubo is a Sushi Labs 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.
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