When Yearn Finance by Andre Cronje hit the market with massive growth, many complained and worried that they missed the boat. We all know the lesson that we are not supposed to look at the price of an asset, but its growth and potential. Yet, it’s hard to digest when we have seen an asset grow right before our eyes and we waited for it to fall, and the opportunity passed by us. Being in the crypto world, we have all been through that, seen that happen, and felt it.
A 250% increase in capital in the past week and 32% in the last 24 hours. These impressive developments by yield aggregator Rari Capital (RGT) require our close investigation.
People generally invest in decentralized finance (DeFi) because of one primary reason: they want to earn more. While we all recognize that DeFi brings a whole new level of risks that can lead to an “amateur” investor quickly losing all of his investments, it also brings with it a strong earning capacity that can sometimes be too true to believe.
For an experienced investor, this might not be an issue, but the lure of higher returns might be too tempting to overlook for someone just starting. The ensuing wild goose chase of higher yields might result in investing in schemes that have hidden backdoors in unaudited smart contracts or being exploited by the wolves lining the DeFi streets, and even getting “rug pulled.”
To avoid this unsavory situation, Rari Capital has devised a tested and trusted means of how investors can follow their risk appetite to earn the best rewards possible while not getting burned. In short, it looks to help users minimize risks while maximizing whatever returns they could be able to get.
Introduced in mid-July 2020, Rari Capital has one of the unique features in DeFi with its roboadvisor that seeks to help investors optimize for the highest possible yield at every possible time. It merely means that Rari would always put the investors’ yearnings at the forefront of whatever it does by looking for avenues where they can essentially earn on their investments with little risks attached to it.
The DeFi Protocol started as a safe option for investors to earn returns on their investments without automatically incurring any losses; it later pivoted into a startup that focuses strongly on helping users earn as much as possible by leveraging yield farming strategies.
Rari, short for Ferrari’s top luxurious car, earns yield for its investors by carrying out lending and farming activities across several DeFi protocols like Compound, KeeperDAO, Aave, and others. Its pools have also been designed in a way that they cover every possible yearning of an investor.
An investor looking to play it safe could invest in the stable pool that only invests with audited contracts, which the system have been termed to be safe, while an investor with a higher appetite for risk would be putting his eggs in the basket of the yield pool that seeks to maximize returns regardless of if the contract is unaudited or even leverage. The focus of this pool is to protect the investor and bring back the profit.
Due to the higher level of risks in the yield pool, investors here would have the platform’s highest possible returns. And the last option would be for investors to put their funds in an Ethereum-based asset pool that also guaranteed a level of safe and stable rewards over time.
This is a good time to think of the past. In 2017 when the ICO craze was at its peak, a lot of scams were in play. Founders presented a whitepaper that was poorly written, had no product, and funds were invested which they could withdraw and disappear.
But with DeFi, the funds are staked, platforms are decentralized, a lot of entities are DOAs, there is better transparency and mostly beta products are live.
It’s 2017 all over again, but so much safer, mainstream, and better. If someone felt they missed 2017, they have it again now. If they miss it again, they know whom to blame.
DeFi is all about liquidity. Someone can exit anytime, it’s flexible and lesser risker, and more or equally rewarding.
With Rari Capital, one gets a second chance at 2017, and Yearn Finance. It is an amazing project, the community is extremely small, amazing technology and it’s an excellent time to get in. Well, they have shitty memes while great memes are essential for viral promotion these days.