Rake Capital is bringing lending and borrowing of infinite assets on Polygon using Rari protocol, with close collaboration with Rari Dao. We are starting with Fuse, an isolated interest-rate market developed by Rari Capital. We have a 50-50 partnership with Rari DAO and are fully committed to create value for both projects via close collaboration.
Our goal is to leverage low fees of Polygon to increase participation in the Rari protocol and build exotic DeFi products on top of it.
For the next 2 months our focus is to build a strong developer community to stress test our contracts and improve the utility of the Fuse product.
How will Rake Capital use 0x?
- Liquidation of assets
- Swapping tokens when entering pool
How do we intend to use the funds?
- Hire talent (2 full time DeFi engineers, 1 UX designer, 1 product developer, 1 community head)
- Legal fees (incorporating an entity in Singapore)
- Product development and Cloud infrastructure
- TWAPs to provide prices to the Fuse product
What does our Roadmap look like?
- Initial deployment of Fuse on Polygon
- Adding Polygon-specific assets to Fuse
- Implementing new product development
How do we create value for 0x ecosystem?
0x is working towards creating a tokenized world, one with value freely able to traverse via blockchains. While 0x serves as a strong liquidity endpoint, the natural next step after trading the limitless assets on a blockchain, is being able to borrow and lend any of these assets. Not only does Fuse, specifically on Polygon, enable 0x to come closer to their mission but it also provides some concrete value accrual methods for the ecosystem, including:
- Trades via liquidations: providing liquidators with bots that liquidate via 0x. There have been over 321 liquidations on the Fuse platform on L1. With the higher CF’s Polygon will enable, we expect this number to be much larger on our deployment. 0x is at the basis of the liquidators and all of the templates we create (which are essential because liquidators need to stay up to date with all our new asset types) and will consume plenty of 0x orders.
- Trades on entry: when a user deposits into an asset pool that is not the asset they are depositing with, it will use 0x on the backend to make the trade into the desired asset. Rari’s L1 deployment transacted over $90M through dexes in 3 months through this technique.
- Trading director: One of the largest use cases of Fuse is to provide margin on long-tail crypto assets. We have created an interface that makes margin easy through flash loans and we can directly plug into the 0x for this. In the meantime, we can ensure that trades re: margin are done via 0x by providing a route through our interface. This is likely to be the largest driver of volumes to 0x as it will be the basis of an entire margin service.
With Fuse and 0x on Polygon, we can realize that vision of a tokenized world while making it accessible to all.
Email : email@example.com
Team : Rahul Agarwal (@r9hul), Erik Allberg (@erikallberg)