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Rari Capital’s Multifaceted DeFi Tools
Rari Capital is a suite of decentralized finance (DeFi) products designed to provide utility for a wide spectrum of DeFi user profiles. The Rari crypto platform’s range of protocols are meant to create and deliver aggregate yield on investment through various means. These investment products offer DeFi users of all types a simple and secure way to grow their crypto assets and participate in DeFi.
At its core, Rari Capital consists of the following major components:
Yield aggregator: The platform offers several liquidity pools — including ones that feature assets such as USD Coin (USDC), dai (DAI), ether (ETH), and Yield. For each pool, users deposit the supported token, and in return receive an interest-generating token. Rari’s yield aggregator automatically searches for the highest yield through a collection of safety-assessed DeFi lending protocols, and users can withdraw their funds at any time into any of Rari’s supported assets.
Fuse: Fuse is an open interest rate protocol that allows users to lend and borrow digital assets peer to peer (P2P). The Fuse protocol enables anyone to instantly create and deploy their own lending and borrowing pool.
Tranches: Rari is integrated within Saffron Finance, a DeFi protocol pioneering in risk mitigation and providing steady interest rates across the DeFi sector. Users who deposit into these tranches receive guaranteed interest rates, as well as emissions of Saffron Finance’s native token SFI as an added incentive for providing liquidity.
Pool2: Pool2 provides extra incentives for RGT crypto liquidity providers (LPs) on decentralized exchanges (DEXs) on top of those offered by the DEX itself. For instance, users can stake both RGT and ETH on SushiSwap in the RGT-ETH Pool, and earn extra RGT token rewards in addition to the SUSHI rewards earned from SushiSwap.
Rari Governance Token (RGT)
The Rari governance token (RGT) functions not only as the governance token of Rari Capital but also as the primary currency with which users can generate yields on their liquidity pool contributions. More specifically, RGT is used for:
Governance: RGT token holders can participate in voting through on-chain governance.
Liquidity mining: Users can contribute to the liquidity pools on DEXs to earn liquidity mining rewards and a share of the DEX transaction fees.
In September 2021, the Rari crypto community approved a proposal to mint 2,500,000 RGT tokens immediately, plus another 7,500,000 RGT at a linear rate over the following three years. This represents a total of 10,000,000 RGT to be minted and allocated to the Rari DAO treasury. In February of 2022, the maximum and total RGT token supply was 12,500,000 and the circulating supply was 12,135,000.
The Rari Crypto Governance Process
Rari’s governance includes both an on-chain and an off-chain component, with hard-coded Rari Capital decentralized autonomous organization (DAO) governance processes dictated by RGT token holders through GovernorBravo – a simple but powerful governance system forked off Compound.
That being said, many aspects of Rari’s high-level consensus process amongst community members are finalized off-chain by its community of RGT crypto holders. The community’s main contributors are organized in the form of independent working groups called “taskforces.” Each taskforce carries its own specified objective or vision and enjoys a large degree of autonomy in terms of how it can spend its resources, hire and collaborate with contributors, and make decisions to achieve its vision. At present, these are the taskforces:
Infrastructure taskforce: Building the most robust underlying lending and borrowing protocol and setting up the proper infrastructure to enable it to thrive without the infrastructure team.
Market XYZ taskforce: Building a front-end and business for the Rari Protocol that are accessible to all. Exploring some more exotic use cases of the underlying protocol, with an emphasis on Layer-2 solutions.
Generalized applications taskforce: Building out integrations and applications on top of the Rari Protocol.
RGT token holders are the responsible party when it comes to providing the vision and goals for Rari crypto governance initiatives. That’s why Rari places significant importance on ensuring community cohesion and transparency, hosting regular community calls, and maintaining social channels such as Discord.
Rari Crypto Users Are Raring to Go
Rari’s products are intended to empower individuals by providing powerful choices and options for value creation that are tailored to the different needs found throughout DeFi’s growing population of users. In February of 2022, Rari had over $1.4 billion USD in total value locked (TVL) on its various protocols, and its community of over 10,000 participant users is well-positioned for further growth.