You have a choice: you can either dwell on how the market treats you and be miserable, or you can redirect your energy into learning more.
The war on LSDfi is in full swing, and the introduction of LSD stablecoins is intensifying the situation.
Find out more about the @raft_fi
In this thread I will cover;
1️⃣ What is $R?
2️⃣ Working Mechanism
3️⃣ The Peg
4️⃣ $R Statistics and Catalysts
5️⃣ Team
6️⃣ Security
7️⃣ Conclusion
1️⃣ What is $R?
Raft is a a LSD-backed CDP stablecoin protocol.
Its main objective is to offer capital efficiency and address the challenges faced by traditional lending platforms when it comes to leveraging $stETH with a simplified one-step leverage process.
2️⃣ Working Mechanism:
Users can deposit $stETH as collateral to borrow $R, with a minimum CR of 120%.
With the protocol's flash mint utility, users can easily leverage their position with just one click, allowing them to borrow up to 11 times their deposited amount.
Thanks to Flash Mint, borrowers can now eliminate the time-consuming steps of leveraging and extra gas fees.
It's important to note that the minimum amount that can be borrowed is $3000 R, which is a much lower barrier to entry compared to its competitors.
3️⃣ How does it restore the peg?
Raft aims to maintain its peg through hard and soft pegs.
☑️ Hard Peg: If $R > 1.20, users mint R with a worth of 1.20 and sell it for profit.
If $R < 1.20, users buy R from the open market and redeem it for $1, driving the price back to $1.
☑️ Soft Peg: Provides investors with confidence that deviations from the peg are temporary. This encourages stakeholders to act on their interests.
4️⃣ $R Statistics and Catalysts
Despite the current market turmoil, the market share of Raft has reached 10% over the past 9 days, all without a bootstrapping mechanism.
In the LSD-backed stablecoin market, its current share stands at 23%.
At present, 26M $R is being utilized by 46M $wsETH, with a collateralization ratio of 176%.
The governance forum of Raft recently proposed new collateral assets to enhance user expansion in the LSDfi market.
If this proposal passes, it could be a positive step towards risk diversification and increased utilization of $R.
Here are some additional yield opportunities:
- Holders of $R can historically earn a 19% APR on the 50R-50wsETH pool on Balancer ---> TVL: $2.5M.
- The R-DAI pool on Balancer offers a 12% APR ---> TVL: $34M.
5️⃣ Team
The capabilities of the team are crucial in shaping the success of the project.
Raft consists of 22 highly talented individuals who have previously worked at reputable companies such as Microsoft, Morgan Stanley, Polygon Hermez, and more.
With a bullet-focused team and support from quality VCs like Wintermute and Jump, Raft is well-positioned to contribute to the long-term goals of the protocol.
6️⃣ Security
Security is of utmost importance in a blockchain project. Audits play a significant role in ensuring the platform's security and reliability.
On May 15, Raft underwent an audit conducted by Trail of Bits. The audit did not uncover any significant flaws in the dapp.
7️⃣ Conclusion
LSDfi has emerged as one of the most significant niches in this industry, attracting substantial capital. Projects that offer genuine products are likely to continue attracting a growing user base over time.
@raft_fi truly stands out with its exceptional UI/UX, unwavering commitment to transparency and decentralization, and team members who possess extensive knowledge in their respective fields.
Rest assured, I will be watching closely.
Raft Finance ---> LSD-backed stablecoin $R
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Raft Finance ---> LSD-backed stablecoin $R
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