OVERVIEW
The idea behind Rari Capital is pretty straightforward: maximize your yields. They were around prior to the recent yield farming craze, as one of the first yield aggregators. What’s new, however, is the launch of their native governance token, $RGT. The protocol is simple to understand and has a user-friend UI.
Keeping things simple, they have 3 strategies: a ETH Pool, Stable Pool, and Yield Pool. Below you can see the underpinnings of each pool and their respective token.
Unlike many anonymous protocols, Rari is backed by an actual human, Jack Lipstone. This offers considerable credibility compared to say Harvest or Pickle who, while they have active devs, they are anonymous and could, in theory, disappear without a trace and leave you holding the bag.
While their APYs aren’t unbelievably high, at around 5% on the Stable and Yield Pools, they are designed to be sustainable long-term. That’s 100x more interest than a bank gives these days, and it could be something where you invest and forget it, rather than chasing phantom APYs of every new project, getting rug-pulled along the way.
They are also quite transparent about their fees, with a 9.5% Performance Fee on all profits accrued, and also a 0.5% withdrawal fee. Of course, the Performance Fee is only on the money that they’ve made for you, it’s not on your initial capital. For comparison, Harvest has no withdrawal fee, but a 30% fee on profits. They’re also quite forthright explaining the risks involved.
RGT TOKENONICS
In addition to the ‘modest’ APY rates we mentioned above on the Stable and Yield Pools, there’s also a very attractive 327% APY coming from the token distribution if you farm. We like that they give a clear breakdown up front, what is the solid, long-term APY and what is the token farming APY which is likely to swing wildly and go down over time.
What does the token do? Well it doesn’t actually give you a piece of the fees paid, but rather a discount on your fee rates. If a whale was to put say $1M into the Rari ecosystem, you can bet they’d secure a sizable RGT position to cut down on the fees that they pay.
The token distribution is clear: 12.5% to the team (vesting over 2 years) and the balance 87.5% to the public via Liquidity Mining Rewards, which are distributed over this initial 60 day period. To prevent premature dumping on the market via early claims, there’s a 32% burn/takeback until December 19 (the end of the 60d).
In our test, we deposited 0.1238 wBTC into the Protocol and the gas fees were around $28 in total for the two transactions. Obviously GAS fees vary and your mileage will vary, but if you’re looking for a more-transparent, easily understood DeFi project to invest in, Rari may be the one for you.
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