ON–104: DeFi (Part 2)
Coverage on OlympusDAO, Maple Finance, Tokemak, and Rari Capital.
Jan 14, 2022
- TOKE – or the token of the other project– can be staked in reactors for yield. Tokenholders can also vote on projects for each cycle and what DEXs to direct liquidity to. TOKE staking is currently tracking around 4.6m TOKE, or ~$250m, up ~18% from the end of 2021.
- Currently, five projects are added to new reactors per cycle. Yields – denominated in TOKE for all staked tokens – are adjusted every day to balance liquidity on both sides of the reactor. Popular reactors include Frax, Alchemix, and Sushi, where the project’s token is staked for tAssets.
- Rari Capital has merged with Fei Protocol to construct the Tribe DAO, a DeFi collective that aims to provide liquidity and financial freedom to the world. Fei was the first DAO to launch a Fuse pool, as well as the first organization to enable liquidity incentives. The FeiRari (Fei DAO Pool) is currently the second-largest Fuse pool with $238m supplied and $24m borrowed. The Tribe DAO has recently approved the addition of D3-f and FEI3CRV, paving way for two more tokens to be rewarded with TRIBE.
- Fuse, permissionless lending/borrowing pools, has generated $1.48m in fees since inception (March). Fuse estimates that $178k is generated per month which equates to over $2m per year based on current data and usage. Fuse pool creators can also choose to launch reserves which totals $301k.
- Permissionless pools have continued to increase in usage. We are seeing an uptick in DAOs, protocols, and individuals creating their own custom lending and borrowing environments. Fuse pools start as "Unverified" and once approved by governance, are migrated to "Verified."
