An article to understand the new species of "DeFi + smart investment": Rari Capital, DADA and CyFi
Original author: Huang Xuejiao
Robo-advisor is a mature product in the traditional financial field, and it is currently being combined with DeFi.
The picture below shows the DeFi robo-advisory platformRari Capital's liquidity mining pool, stable currency pool and Yield pool (that is, the yield pool in the picture) have an annualized rate of return of 15.8%, which is a good performance among many DeFi products. In addition to the return of investment advisors, liquidity mining is also based on the user’s additional governance token RGT, and after conversion, participating users can also obtain an additional 44% annualized return. But there are only 10 days left before the end of this bonus period, would you consider participating?
Then, what is so special about Rari Capital’s robo-advisor? Some introduction articles will describe Rari Capital as a revenue aggregation platform, but its logic is different from that of the aggregation financial platform YFI(yearn), so this is a What new species? How about the performance of other products besides Rari Capital? Let’s read on.
and blocks What kind of imagination does the robo-advisor with the natural fit of the chain bring to DeFi?
Robo-advisor, also known as robo-advisor, is Investors can directly hand over their money to a professional robot. The robot provides investors with relevant financial advice through the established data model and background algorithm based on the investor's financial status, risk preference, financial goals, etc.
Robo-advisor is a substitute for manual investment advisor, and has a natural fit with the decentralized operation of the blockchain.
For robo-advisory products, in a decentralized form, anyone can take it and use it at will, realizing automated and intelligent personal asset management. The resulting inclusive finance and user scale growth may be orders of magnitude.
For the decentralized financial market (or DeFi), robo-advisors can solve many problems, including:
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Investors' understanding of the DeFi market is immature, and at the same time lacks effective guidance and risk warnings, it is easy to operate rashly, resulting in losses;
New DeFi projects and new ways of playing emerge in endlessly, The level of projects is uneven, and investors may not be able to try and participate one by one if they are willing;
The interest rate difference in the DeFi market is time-sensitive, and manual operations are inevitably inefficient and emotional.
The above problems can be solved to a large extent through "machine" operations.
As Cortex Labs concluded that decentralized robo-advisors can not only improve transaction processing speed, but also can , third-party word-of-mouth data, etc., and comprehensively judge the overall credibility, rate of return, and risk coefficient of each product, helping ordinary investors make safe, efficient, and accurate investment and asset management.
After talking about the theory, let's take a look at the practical results of Rari Capital, a DeFi robo-advisory platform.
Rari Capital: No one cares about it when it just launched, it’s better to mine
It is understood that Rari Capital was officially launched in June this year.
Governance code announced until October 19 After using RGT and liquidity mining, the amount of locked positions skyrocketed, reaching a peak of 81 million US dollars, and then declined slightly. As of press time, according to data from DeBank, Rari Capital's current lock-up volume is about 56.7 million Dollar.
Rari Capital's lock-up volume changes , Source: DeBank
RGT also experienced after its launch According to coingecko.com data, 3 days after the launch, RGT will It has risen to an all-time high of $5.72. The current price has fallen by 89% compared to the high point, but it is still nearly 200% higher than the historical low. As of press time, it is temporarily reported at $0.62, with a total market value of $780,000.
In addition to lock-up and currency price performance, let’s take a look at the gameplay of Rari Capital.
According to reports, Rari Capital adopts intelligent The more common automatic rebalancing strategy (Rebalancer) in investment advisory is to arbitrage between different protocols, including but not limited to market making, arbitrage, decentralized insurance, etc. The products currently connected include AAVE, Opyn, 0x, dYdX, etc. .
On the user side, Rari Capital currently supports 3 fund pools (stable pool, Yield pool, ETH pool), that is, users can deposit stable coins, ETH or other coins to obtain corresponding RSPT tokens (synthetic stable coins), RYPT tokens and REPT coins, and redeem funds when needed. All three pools will charge a 9.5% fund management fee, and the first two pools will charge an additional 0.5% withdrawal fee.
The total number of governance tokens RGT is 9.47 million, of which 87.5% are allocated to users who store in the fund pool, and the distribution will be completed within 60 days after going online (that is, in December 20th), the remaining 12.5% of the tokens are reserved for the team (linear release). Users need to pay additional handling fees within 60 days after mining RGT, and the handling fees decrease linearly with time (33%-0%), which may be due to its current low circulation (less than 1.24 million pieces, accounting for 15% of the mining release).
RGT features include maintenance governance and fee discounts for the Rari Capital agreement. The biggest advantage is the destruction plan.
Initially, Rari Capital stated that 70% of all revenue generated by the agreement will be used to burn RGT. By November, Rari Capital changed the distribution rules. It stated that it will launch an automated charity plan to distribute 50% of the income to the "Rari Foundation", and the remaining 50% will be used for token repurchase and destruction.
The Rari Foundation is governed by RGT token holders and decides which charities the funds should be allocated to. Rari Capital also plans to develop donation tax benefits for individual savers in the coming months. Rari Capital expects the move to donate millions of dollars to charities over the next year.
Recently, Rari Capital has made two important progresses, one is included in Aave’s loan list, and the other is cooperation with the decentralized asset management agreement Melon Protocol, Migrated its liquidity to Melon.
These measures have brought higher composability to this nascent protocol.
Renovation of other DeFi+ robo-advisory products
According to public information, DADA’s robo-advisor strategy mainly focuses on the pledge mining function it provides, but when the author experienced this function, the pledge page buffered Can't come out.
DADA also promotes community autonomy and builds financial advisors system concept. That is to say, in addition to the strategies provided by the platform, fund managers (that is, community users) can publish and lock their own strategy portfolios through smart contracts, and users can vote to select listed projects and portfolio strategies they want to participate in. It seems that this is the rhythm of becoming the DeFi version of the "platform with orders". On the asset side, in addition to on-chain products, users can also publish assets on it, and the author can also see off-chain Bitcoin and Ethereum physical mining investment products.
As of now, the platform has not issued coins. According to public information, DADA team members are from Zhongan Insurance, Wanxiang Blockchain and other companies, investors include DFG, etc.
CyFi Developed by the Cortex AI public chain team. Just like its name, CyFi focuses on the application of AI technology (probably the most intelligent among several products), emphasizing the benefits while emphasizing the evaluation of the risks behind DeFi products. Make decisions on investment strategies and portfolios.
According to the official website, "CyFi starts from the original data of DeFi and calculates a series of high-level functions, including centralization Liquidity, liquidity, collateral mortgage... to obtain an AI model, and provide the inferred results of this investment portfolio to the smart contract of Ethereum across the chain, and realize automatic investment in different DeFi financial management platforms. "
At the same time, CyFi's rating of each product and the AI model that deduces the optimal investment portfolio at the current stage are open source.
The platforms currently supported by CyFi include Compound, Aave and Fulcrum, and the supported assets are currently mainly DAI, with an investment rate of 4.3%. As of now, the platform has not yet issued coins.
Overall, the current robo-advisory products are still in the early stages of development, and they still need to be tested by the market in terms of rate of return and stability. Compared with aggregate financial products on the market, the difference is not very obvious. But from it, we can see the ideas and practices of technology blessing from traditional finance.
Looking forward to their improvement and upgrading, one day farmers will be able to obtain the latest investment products with the highest returns on the market without leaving early and returning late.
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