Rari Capital Fuse Pool

Intro

Rari Capital is a fellow DeFi project that’s building a suite of applications spanning borrowing, lending, and automated strategies. They’ve recently reached out regarding the potential launch of a BOND Fuse pool.

From their documentation: The Fuse platform enables anyone to instantly create their own lending and borrowing pool. Each Fuse pool is essentially a fork of the Compound protocol.

Discussion

For the BarnBridge DAO to receive a Fuse pool would require us to pass the approval of Rari Capital’s community governance. The DAO would be expected to seed this pool to some extent.

This post is intended to gauge community interest in pursuing this collaboration.

Considerations

Pros:

  • Creates a borrowing market for BOND
  • Establishes a relationship with the Rari Capital community
  • Allows the DAO to set its own lending terms

Cons:

Misc:

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Isn’t the obvious question here if we can use either jtokens or senior NFTs in the pool as well?

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I agree.
The way I understand Fuse is that you need to be able to liquidate a position. It would be great to have it for Jtokens (and Senior of course). Can’t we just create a pool for Jtokens in Sushi like MPH does?
It would create a liquid market and allow Rari to create a Fuse pool for the Jtokens as well.

Do we need to create this potencialy risky pool? I belive AAVE will list BOND as collateral soon. I also belive there is a big chance for jtokens as collateral on AAVE.

I think it is better to focus and support AAVE to create pools we want.

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My first thought is that having more places to deposit or borrow BOND is a good thing. In many ways, Competition with Aave, Bancor, or other protocols is a good thing since the APYs across all go up when there is more places to park it.

I probably need to do more research on Rari Capital, but their safety score makes me a little nervous to seed treasury assets there. Not only are we putting DAO funds at risk, but we are also signaling to the community that we believe it is a good place to park BOND. I see they are integrated with Chainlink so our BOND/ETH feed would be important to use if we ultimately decide to try this out. I’d be curious to know more about their risk assessment criteria, how they fared under the most recent drawdown, etc.

Worst case scenario maybe we just give them some more time while we are busy with other projects this summer and revisit when they have been more battle tested and maybe even have more audits / higher safety score.

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Listing on AAVE takes time. Current vote is just to ‘feel’ whether there is interest. The hardest part starts after with figuring out the LTV and actually starting to work on it. May take a month or two.

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Well there is ongoing vote for listing BOND on AAVE. It should be soon :slight_smile: I hope :smiley: