Thread by @Rentahomefast

either an uber degen play or a golden opportunity........TWT what will haps, I want to make a thread on rainspirit

2/ so what is it first, well it is from the ola finance team ( whitelisted by the spirit team) it is a fork of winspirit which is just liquid inspirit tokens from the spirit swap team.......

normally when you lock spirit for inspirit, it is illiquid and you cannot trade it

3/ so with rain-spirit what is interesting is you can have a liquid staked spirit token, so you can still vote and get rewards

4/ yes it is a staked spirit so what happens to the spirit tokens from staking......well

5/ whats interesting about rainspirit tho is that if a protocol wants to play in the spirit wars and direct liquidity to their pools they have a few options
1. buy spirt and lock
2. buy a protocols token that is buying spirit (like LQDR)
3.bribe spirit holders
4. rainspirit

6/ now what is the rainspirit option.....well instead of bribing or borrowing you can now borrow the spirit token to bribe.... Protocols want votes so they can vote on their pools to increase the spirit rewards which will attract more liquidity. aka lower slippage/better prices

7/this is one of the mechanisms for keeping the token at peg (not active rn) so this is why we have this so twt what haps

8/ but how the peg will work is as there is more demand for rainspirit because you do not have to have exposure to the spirit asset (because borrowing it) you are now able to get the same effect as bribes or voting and sometimes more

9/like right now you have a 2 to 1 vote if you were to borrow spirit and swap it with rainspirit 😉 .....when a protocol borrows it still has no risk to the downside of the asset because that is what the debt is denominated in. (even on a down day still heavily borrowed)

10/ so to sum up the argument, rainspirit is interesting because it may be cheaper (depending on the aprs) to simply borrow rainspirit than it is to bribe protocols. especially if you are able to get more votes on the dollar as in if 1 spirit buys you 2 rainspirit

11/ then you can borrow spirit and swap for rain spirit and get double the votes

12/ here is an article to read more about some of the developments bit.ly/3JLQQS4

13/ there will be announcements soon on the updates but this is a risky play because their is a chance that it never holds peg and the concept never takes off, the @ola_finance team is pretty knowledgeable in defi but doesnt mean that rainspirit will work out

14/ as always twt what haps but I just think it is another interesting way for a protocol to play in the bribe wars

if you enjoyed this thread feel free to tweet to a degen near you

https://twitter.com/Rentahomefast/status/1500909965644550147

also this is dependent on spirit bribes taking off and the success of ftm

#spiritwars #spiritswap $spirit