While Fuse introduces a brand new DeFi primitive, there are endless opportunities for the use of this application that we may not even notice until the product is live and being used by the community. Liquidity is key to making Fuse successful and leading up to our launch we are looking for tokens to partner with. To start, I would like to propose BadgerDAO route treasury funds to the initial Rari Capital created pool that will hold BADGER. This is a pool that consists of community powered projects like KP3R, HEGIC, SUSHI, SFI, MPH, ALCX and more. Later on in our safeguarded launch, users will be able to generate their own pools and I see a future where BadgerDAO generates their own pool for treasury management (using bDIGG and BADGER), but in the meantime the Badger community seeds this launch pool with initial capital to become familiar with the platform.
Fuse can support any asset as long as there is a safe and secure oracle. Once bDIGG is listed on Sushiquotes, we can add bDIGG to one of our launch pools/allow users to add this as an asset in custom pools.
Benefits:
Treasury earns autonomous interest for lending BADGER holdings
We can build a custom yield aggregator once multiple Fuse pools with BADGER are earning yield
Users can now borrow against their BADGER positions
Collaborative partnership between both teams to build more integrations together
How does it work?
Treasury seeds capital into Rari Capital created pool
Treasury earns interest on lending
Users can borrow Badger
Since this is a new product, it is impossible to predict the rates. Most likely to be comparable to other interest rate protocols.
Considerations:
The pool should be seeded with $1M in BADGER to earn interest on lending, and allow Badger users to lever up on their current holdings.
Specifics:
Upon passing snapshot the core team can use the $1 Million worth of BADGER from the treasury to seed the Rari Capital created Fuse pool with BADGER.
I can’t keep up with all the new products in the DeFi space. Provided that this Fuse is audited and as trustable as one can hope in the space, I don’t see why not.
Seems like most of the partnerships we’ve done with new projects are for 250k, this one is asking for a million. Is there a different level of confidence from the team for the 250k projects vs the 1 million ones? Should we have different partnership levels based on the utility we believe that project offers our token holders? I guess I’m asking how are we currently deciding how much to give to new projects and do we have a formal framework we work from?
Fuse seems like a very interesting product. However, I don’t think I can vote for this proposal without a better understanding of the risks and mitigations.
And do we have an intuition around what yield we’d expect? For instance, right now the APY for lenders of BBADGER on CREAM is 0.02%. Seems like we’d be undertaking quite a bit of risk for very little reward? Maybe the Rari team can sprinkle some RGT rewards to incentivize a favorable vote? (i.e. see the recent ARCX proposal)
Disclaimer: I hold positions in RGT, BADGER & DIGG.
@JackLipstone could you please address the concerns raised by community members? I’d also like to understand what the timeline for seeding the pool would be (entry and exit).
Also, you mention this as a benefit, but from the UI, it appears there is no interest for providing badger to the pool.
