Thread by @myBlockBrain

the People want more Decentralized Stables n a new contender has entered the #LSDFi wars

@raft_fi is a Decentralized borrowing & stETH-backed stablecoin that offers leverage + no fees

if u faded Lybra heres your redemption arc

$R u ready 🧵👇

1/ @raft_fi is a protocol that lets you generate its native stablecoin $R against $stETH collateral

an immutable and decentralized lending protocol where users can take out loans against their $stETH collateral

2/ what makes this special is that $R is the first Ethereum USD stablecoin solely backed by stETH. $

R provides the most capital-efficient way to borrow by having no fees n a low IQ friendly platform with deep liquidity across many trading pairs and a stable peg

3/ $R is hardpegged to the price floor of 1USD and it is designed to always retain a value of 1USD

each Eth wallet needs to open a new Position Only one Position is allowed per Wallet

Within each Position wrapped stETH (wstETH) needs to be deposited as collateral to borrow $R

4/ borrowing design here is where u can expect to see most people flock towards

other platforms require anywhere from 150% to 200% collateralization where @raft_fi only requires 110% meaning u can get more than 10x potential leverage

based

5/ theres 3 methods when $R gets burned

Repayment: Borrower repays own borrowed tokens and gets wstETH back

Redemption: token holder redeems for wstETH in return

Liquidation: Liquidator pays off Borrower's debt and gets collateralized wstETH + Liquidation Reward in return

6/ best products in DeFi dont always win but the best UX usually does

@raft_fi has both

theyve created a very degen friendly user interface that lets users do everything in a single click

-Deposit $stETH
-select your leverage multiplier
-click execute

boom finished

7/ will I get Liquidated Max?

relax frend

liquidation reward compensates liquidators for the risk involved, Its a dynamic percentage of the excess collateral based on the total debt.

8/ Aave and Maker are currently dominating market share but are difficult to use n can be expensive

As borrowing fees of $ETH increase more capital will flow to Raft as the cheapest, simplest, and most efficient to leverage your stETH

9/ how do users benefit from Rafts success?

Leveraging up on $stETH generates swap fees for $RLPs, which increases APR in these pools, which in turn increases TVL in @raft_fi

Leveraging n deleveraging transactions will create huge volumes in $R pools for LPs

10/ all this innovation is scheduled to launch early June so prepare yourselves as theres a good chance this protocol takes the game by storm

11/ tagging some lsd lovers
@Slappjakke
@crypthoem
@0xTindorr
@blocmatesdotcom
@burstingbagel
@NickDrakon
@crypto_linn
@DAdvisoor
@0xFlips
@DeFiMinty
@swaggyAlexyo
@goon_crypto
@kindahangry
@LouisCooper_
@Navang25
@Roberta66961503
@0x6851
@CryptoNikyous
@BackTheBunny
@ArbiAlpha