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1/ $RGT, http://rari.capital ( @RariCapital). This is one most of you already know, but there is so much happening and so much great innovation coming from these guys (Fuse + Tanks + RSS coming in a few weeks…) that I thought it deserved a proper review
2/ @RariCapital is a yield aggregator allowing users to earn the best yield on their crypto within different risk appetites. They currently offer 3 yield pools (2 stablecoin & 1 ETH pool), applying funds across DeFi protocols such as Compound, dYdX, Keeper, mStable, Aave, etc.
3/ But the point is that for Rari this is just the beginning. Their current product competes with existing yield aggregators (Yearn, Farm, Alpha...)l leveraging on the same available DeFi protocols (the Aave’s, Compounds, etc) to earn the best available yields.
4/ The game changing thing about @RariCapital is that with their upcoming Fuse pools and Tanks, they will allow anyone to create entirely new money markets (so entirely new @AaveAave's and @compoundfinance's) and to borrow and earn yield against ANY asset!
5/ But let’s start from the beginning. As it stands, Rari already offers a great product. Their yield generating pools not only rebalances funds between different investment strategies, but also rebalances between different stable coins to look for the best available yields.
6/ Rari currently offers two stable coin pools with two risk profiles (the more conservative “stable pool” and the more aggressive “yield pool”), and one ETH pool. They have also partnered with @saffronfinance_ to offer Saffron’s tranche investing through the Rari portal.
7/ To address current high ETH fees, Rari is working on a Layer 2 solution based on optimistic rollups in collaboration with @optimismPBC, and they are also working with @loopringorg, which will soon allow users to enter the Rari pools directly through Loopring’s layer 2.
8/ This will also integrate fiat onramps, so a user could potentially deposit amounts as low as $100 or $200 directly from fiat through Loopring, and start earning yield on Rari Capital without ever paying ETH network fees, opening the door to a massive market of retail investors
9/ $RGT (soon to be rebranded $RCAP) is the platform’s governance token. It can currently only be used to propose and vote on governance, but staking for earning a share of the platform’s revenues and getting fee discounts will also be available in the near future.
10/ $RGT’s current max supply is 10M tokens, o/w 87.5% were distributed through liq. mining and 12.5% to the team (2y vesting). Following governance voting, an additional 10M tokens will be minted & distributed over 2.5y to Rari’s treasury (70%) and as liquidity incentives (30%).
11 / Rari has a young team (all under 20!) but make no mistake, this is an amazing team. These guys were coding DeFi wallets in highschool, the CEO and COO have worked on MyCrypto prior to Rari, and they have been innovating non-stop since Rari’s V1 release in June 2020.
12/ Now let’s get to the really mind blowing stuff. The holy trinity of Tanks, Fuse, and Rari Safety Scores (RSS).
One of the main issues with most yield farming today is that you can’t earn yield on any asset. Even now on Rari, you can only earn yield on stable coins and ETH.
One of the main issues with most yield farming today is that you can’t earn yield on any asset. Even now on Rari, you can only earn yield on stable coins and ETH.
13/ With Tanks, users will be able to post any asset as collateral and borrow a supported asset to earn yield on automatically. The beauty of it is that the Tanks will rebalance the exposure automatically depending on the value of the collateral, so users won’t risk liquidation.
14/ At first, Tanks were expected to rely on Compound for borrowing, but that will change with Fuse. Fuse will enable anyone to create pools of assets which are their own money markets (so their own Compounds or Aaves), creating a market of money markets.
15/ Each Fuse pool will have its own supported assets, own collateral requirements, interest curves, oracles for price data, and even their own whitelist of participants. At launch, Fuse will support any asset tradable on #Uniswap, and the list will grow with time.
16/This can become a virtuous cycle where Tanks borrow supported assets though Fuse and apply them to Rari’s yield generating pools, which are themselves potentially investing funds in other Fuse pools. So the Rari ecosystem itself will provide liquidity and demand for Fuse Pools
17/ The last piece of the puzzle are Rari Safety Scores (RSS), which will be automated risk scores assigned to assets & money markets (incl. fuse pools) based on public data such as market cap, liquidity, volatility, etc, allowing Rari to allocate and rebalance funds based on RSS
18/ Given Fuse pools will support whitelists of approved participants, Rari’s ambition is to also cater to institutional investors which are currently constrained from participating in DeFi due to KYC/AML requirements.
19/So Rari capital would be at once offering the best yield aggregator product for the existing crypto market, a low fee access for mass market non-crypto-native users (L2 solutions) and a regulatory compliant way for the huge institutional investors market to participate in DeFi
20/ Not surprisingly, the team has huge ambitions for Rari Capital and Fuse, as they aim for it to become a base DeFi layer that could eat up all blockchain-based value and put it inside of a Fuse market, earning yield and increasing capital efficiency.
21/ In summary, I think @RariCapital $RGT / $RCAP will become one of DeFi’s major players in 2021.
Just note that this team is innovating so fast that by the time you finish reading this post, it will probably already be out of date...
Just note that this team is innovating so fast that by the time you finish reading this post, it will probably already be out of date...
22/ A few useful links:
-Fuse presentation: https://medium.com/rari-capital/a-prelude-to-fuse-f0b3afab40c
-BlockCrunch interview with the team: http://spoti.fi/3jN27pq
-About/FAQ: https://www.notion.so/Rari-Capital-3d762a07d2c9417e9cd8c2e4f719e4c3
-DefiPulse: https://www.dextools.io/app/uniswap/pair-explorer/0xdc2b82bc1106c9c5286e59344896fb0ceb932f53
-Fuse presentation: https://medium.com/rari-capital/a-prelude-to-fuse-f0b3afab40c
-BlockCrunch interview with the team: http://spoti.fi/3jN27pq
-About/FAQ: https://www.notion.so/Rari-Capital-3d762a07d2c9417e9cd8c2e4f719e4c3
-DefiPulse: https://www.dextools.io/app/uniswap/pair-explorer/0xdc2b82bc1106c9c5286e59344896fb0ceb932f53
