DAO Treasury - Seed Rari Capital's Upcoming Fuse Pools (BADGER/DIGG)

About Me
Hey everyone! I’m Jack from the Rari Capital team and below is my proposal for a collaboration between Badger and Rari Capital!

Introduction
Rari Capital will soon be unveiling our new financial primitive, Fuse. This protocol is a custom money market deployer, allowing for any user to generate their own money market using: custom assets, custom interest rate curves, custom oracles, and a whole lot more. While we haven’t pushed much information live, you can read more about Fuse here: https://medium.com/rari-capital/a-prelude-to-fuse-f0b3afab40c and view the current interface here: https://twitter.com/transmissions11/status/1363385724259602435?s=20

What is Fuse?
Fuse can be used for leveraged yield farming, debt financing, leveraging on tokens, and literally everything imaginable as long as an oracle can be created and utilized.

Proposal
While Fuse introduces a brand new product in DeFi, 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 Rari Capital created pools and even a BadgerDAO pool as well (if interested) to earn autonomous interest on BADGER holdings. By doing so, the BadgerDAO community would have the freedom to lever up on their positions and do all sorts of other creative strategies that traditional money markets with BADGER currently supported limit their users with. Once there are multiple Fuse pools with BADGER liquidity, Rari Capital will be able to build a custom yield aggregator for the token to allow for BADGER holders to earn the highest yield possible without losing exposure to the token.

As part of our safeguarded launch, we will start on Day 1 with Rari Capital created pools. One of our initial pools will include DIGG and BADGER. In the future we will be able to support rebasing assets. I will also note that although our launch will only allow Rari Capital created pools, in the future Badger can create their own pools as well if that is of interest.

Example
User will be able to lend BADGER or bDIGG and borrow USDC. (This will depend on the tokens in each pool/what is used as collateral)

Collaborative Opportunities
If BadgerDAO and the community is interested we would love to work on onboarding BADGER and can proceed together on collaborative marketing to enhance the use cases of Fuse within this ecosystem.

20 Likes

Hi Jack,

Been reading about fuse recently so excited you’re reaching out. We’ve been having discussions around how to optimally use treasury assets. We have a number of goals around which we are forming strategies. What percentage of treasury assets do you think would be sufficient for this? The idea of custom curves for pools is very exciting to me as we navigate the most efficient ways to manage the treasury.

7 Likes

It seems a great idea and another positive way to add utility to the Badger eco system. If you are proposing bDigg, it would also make sense to have bBadger as well. That would be a huge benefit to people staked in Badger.