0xRafi Profile picture
18 Feb, 22 tweets, 8 min read
1/ $RGT, 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.
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...
22/ A few useful links:
-Fuse presentation: medium.com/rari-capital/a…
-BlockCrunch interview with the team: spoti.fi/3jN27pq
-About/FAQ: notion.so/Rari-Capital-3…
-DefiPulse: dextools.io/app/uniswap/pa…

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More from @0xRafi

16 Feb
1/ $DFD, @defidollar, dusd.finance. This is a project that i've mentioned over the last few days and that I believe is massively undervalued (~$10M market cap) and deserves a lot more attention. Image
2/ @defidollar offers a risk-insured stablecoin layer for DeFi. It does this through $DUSD, a stablecoin backed by an index of stable coins and leveraging on DeFi building blocks to ensure a $1 peg is maintained even if one of the stablecoins in the index loses its peg.
3/ So let’s take it step by step. Supported stable coins (DAI, USDT, USDC, sUSD…) can be posted as collateral to mint $DUSD and are provided as liquidity for yield generating DeFi products (such as @CurveFinance, yearn or $AAVE). And here is where the interesting stuff begins… Image
Read 21 tweets
14 Feb
1/ Here is another potential game-changing project that I am very bullish on: $BONDLY / bondly.finance (@BondlyFinance).
There is A LOT to say about $BONDLY, and each part of its offering (OTC swaps, DEX, NFT Launchpad, ecommerce gateways) could be a thread of its own!
2/ But the best way to summarise it would be to say that $BONDLY aims to address a simple but major issue, which is that OTC selling / trading of digital goods (crypto, NFTs, gaming items, social media accounts…), has always needed a trusted 3rd party to act as an intermediary.
3/ This 3rd party can range from being a helpful admin of a coin’s TG group, to the pro crypto OTC desks. But they all have 2 things in common: 1) you need to trust them and 2) they ALWAYS take a meaty fee.
Read 22 tweets
13 Feb
1/ A thread on $APY @apyfinance. I believe this could become a major DeFi bluechip, and I’ve been waiting since the 10th Feb for the price to settle before posting this! But it just won’t. So I’ll post it now, but please go slowly if you buy it. It just did a 5x in 2 days!
2/ So the APY platform is a yield farming aggregator that uses a single pool of liquidity and automatic rebalances the portfolio among different strategies to optimise risk adjusted yield revenues. It is basically like having an automated fund manager managing your portfolio.
3/ Today, if for example, you have funds in a yearn vault and you realise another vault launched with better returns, it can cost 100’s of dollars in ETH fees to switch between them. For anyone not investing huge amounts, this makes switching strategies completely unpractical.
Read 14 tweets
13 Feb
I'm not really sure how to say all this but here goes.
I would like to say a big thank you to all the new followers over the last 6 days.
It means a lot that you've found some value in these threads.
I will continue to try and shine a spotlight on some of the hardest working and most innovative teams in the space.
I'll always be keen to hear about any genuinely interesting projects so don't hesitate to drop me a line.
The projects already discussed: $OCTO, $ID, $ROOM and $APY all have fantastic teams behind them and i cannot wait to see all that they achieve through 2021 and beyond
Read 5 tweets
11 Feb
1/ So guys, here’s is the 1st thread on $ROOM (@option_room) the project that practically broke Ethereum when it did its IDO on Feb 5th. $ROOM’s TG group has 29k members and their token has over 8k holding wallets. This is crazy for a 6 day old project, even for DeFi!
2/@OptionRoom is a decentralized oracle / prediction market built on @Polkadot and based on governance, so it won’t rely on external data feeds, but on users as data source, incentivized by token rewards for honest behavior & token slashing in case of dishonest behavior.
3/ The project has a dual token system, with $ROOM used to pay platform fees and rewards, and $COURT as the governance token, that will need to be staked for voting power. Users will be able to stake ROOM (or ROOM/USDT & COURT/USDT LP tokens) to earn $COURT once staking starts.
Read 11 tweets

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