1:18 Bitcoin Price Action
4:25 Risk ON vs Risk OFF capital
6:11 David Lucid, Technical Founder
7:19 Jai Bhavnani, Founder
8:40 Smart Contract Design
10:31 How does Rari Work?
13:37 How is risk managed?
14:46 Risk Score Factors
19:04 Smart Contract Audits
22:12 How Risk Score is Computed
24:30 Rari as a risk data platform
28:47 Traction numbers
30:02 Fair Launches are NOT FAIR
33:50 Capital Onboarding
38:19 Layer 2 Scalability and the OVM
What is Rari? A New Financial “Opportunity Zone”
Capital, right now, you have risk on capital, and then you have risk off. As I mentioned earlier, a lot of this risk off capital is becoming risk on only because they have no reason not to, right. capital is cheap. There’s, there’s free returns basically, everywhere why not, but there is substantial amounts of risk associated with it, because they’ve lost an opportunity to earn yield on on the capital in a low risk way. so Rari aims to reintroduce that optionality to investors by enabling anybody to earn a substantial amount of yield on their US dollars at first and then soon all of their crypto assets and do it in a trustless way where they can actually make a decent return. And I mean, zooming out what one thing I’ve understood is, most people are coming to blockchain and crypto in general, to make money, right? It’s a new financial opportunity. And it’s a new financial opportunity zone. And one thing that we we understood is, we don’t want people taking on this price risk, because there is intense risk associated with it. So our job that worry is, how do we enable the investor class to make as much money as possible without taking on significant risks, like pricing.
How does Rari Work?
We have a yield aggregator, which is a smart contract that anybody can deposit into. And we automatically rebalance between different protocols. These protocols can be things like compound dydx, AAVE traditional money markets all the way to more exotic strategies, like COMP farming, or lending, or I guess, not lending, but providing capital and Mstable, and things like that. Then, when a user deposits, they receive the pool token, which represents their share in the pool, which they can redeem anytime for the pool value. But at the end of the day how do you sustainably maintain these yields, especially when our yield aggregators competing for the same alpha that harvest and Yearn and all these other guys are? It’s a really interesting dilemma to be part of, because we don’t want to compete. And we don’t want to just add another product to this ecosystem that’s just trying to achieve the same goal. And that’s something that we all understood, right? We just didn’t want to do the same thing as everybody else who really zoomed out and said, what, what do we actually want to contribute to this ecosystem. And one thing that we understood is, the capital funnel really has three parts.
Right now we’ve
1. capital onboarding, in terms of metamask, then you have
2. capital formation in terms of our yield aggregator, and then you have
3. capital deployment in terms of places where we actually put the capital
like compound and AAVE. And one thing that we came through in our realization, we want to control each part of this stack, not for the sake of control, but for the sake of bringing a 10X experience that’s actually really innovative. And the first step in that plan is our new project in our new product called fuse. And this is, this is what’s exciting me this is what’s keeping me up at night, as I think about all the new ideas that you built on top of it. And what fuses is essentially a market of money markets. So anybody can come in and build out their own essentially compound, cool, they can choose what assets they want, they can choose what interest rate curves they want, they can even choose what Oracle’s they want. And suddenly, you enable anybody to start their own money market fulfilling like this true idea of like a trustless system, but also giving people the power that they should have, right, like, there’s no reason that compound should be limited to eight assets, and every asset should be voted on by token holders limited to an elite few, we should give that power to everybody.