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Rari Capital has launched an open interest protocol that supports any asset.
Rari Capital Rolls Out Personalized Lending Pools
Fuse allows users to create a pool, selecting their own assets, interest rate curves, and oracles. Any user can then enter and exit the pools trustlessly without consulting a DAO.
Isolated lending pools are a first for DeFi. Moreover, the ability to lend and borrow any asset is a radical step forward, unlike any other platform in the traditional world. In a Twitter post, Rari Capital CEO Jay Bhavanani said that the implications of such a product are “equally scary and amazing.”
He described Fuse as a tool that “enables anyone to spin up their own Compound.” DeFi protocols like Compound and Aave allow anyone with an Ethereum address to trustlessly enter and exit pools for borrowing and lending, but they currently don’t enable users to create their own.
In a blog post announcing Fuse, Bhavnani said:
“The implications of a product like this are massive and unexplored. I see the product eating up all value in the world.”
Rari Capital is working with Chainlink, DeFi’s most popular decentralized oracle.
The Rari DAO has already launched several pools, including one in which ETH, SOCKS, and DAI can be borrowed or provided as collateral. SOCKS is a cult DeFi token created by the Uniswap team. It was sold on a bonding curve and is redeemable for a physical pair of socks. It currently trades at $87,922.
The ability to provide any asset as collateral means that countless other less conventional assets could appear in Fuse’s pools one day.
According to Bhavnani’s Twitter post, users will be able to create their own pools “soon.”
The announcement post notes that more price feeds will be added for Balancer LP tokens, Uniswap LP tokens, Curve LP tokens, Yearn LP tokens, and Alpha Homora LP tokens in the future.
Fuse’s total value locked is currently just under $2.5 million.
Concluding the note, Bhavnani wrote:
“Enjoy exploring the future of finance. Honestly, even beyond finance. Have fun exploring the future.”
Disclosure: At the time of writing, the author of this feature owned ETH, ALPHA, and AAVE. They also had exposure to UNI, COMP, BAL, and YFI in a cryptocurrency index.