Integrate Rari Capital’s $RGT liquidity mining program into yVaults. Proposal by the Rari Capital team
Rari Capital, a robo-advisor platform that takes deposited stablecoins (or ETH in their ETH pool that maintains price exposure) and reallocates to the highest yield opportunities based on risk portfolio for their select pools has launched its governance token and public liquidity mining program.
If implemented, this proposed change would add the $RGT (Rari Governance Token) liquidity mining program amongst current yVault strategies, giving the yVaults a new yield-bearing farming strategy to increase stablecoin alpha.
Rari Capital is currently launching its v2 product with a governance token public liquidity mining program, which gives a great opportunity for new yield. Deposits into the protocol itself provide a yield (equipped with integrations for rebalancing including yEarn) on top of new $RGT distributions. This will improve the yVault alpha. The pools offer the chance for both stablecoin yVaults and the ETH yVault to earn $RGT.
For: Add Rari Capital’s $RGT liquidity mining program to yVaults
Against: Don’t add Rari Capital’s $RGT liquidity mining program to yVaults
Integrate Rari Capital’s RGT Liquidity Mining Program into yVaults
Are you sure you want that?
At first glance I don’t see how it can be interesting.
- 9.5% performance fee (could be lowered by staking RGT but it’s too risky)
- 33% RGT claim fee (for instant claim, decreases to zero within 60 days)
Not easy to calculate the approximate profitability due to the strong dependence of the protocol on the price of the token
This is for a yVault strategy. Since RGT is earned on top of standard yield from deposits, it would dramatically boost the APY of many vaults. Regardless of the claim fee, it’s still high yield. The only issue is that there is little liquidity in RGT exchange pools.
If you’re talking about the utility of Rari as a product, then I think their token design and fee design is quite interesting. Their fees are used in a buy back and burn mechanism that rewards current RGT holders (decreasing overall supply drives up price), but if they could create a long-term inflation plan to incentivize future growth beyond the 60 day liquidity mining period, that would make it even better as a long-term product. Overall, I think the structure behind the project was very thoughtful.
Could you perhaps clarify what you’re actually proposing?
Do users stake yTokens with Rari to farm $RGT? It would be good to specify how this actually works other than “liquidity mining”.
It would also be good to include a link to the pool you’re proposing we interact with, as well as more information about it.