The total value locked (TVL) on the decentralized finance protocol Rari Capital has surged past $1 billion.
The DeFi lending, borrowing, and yield generating protocol has surpassed the key milestone in TVL according to the app dashboard, and DeFiPulse confirms the all-time high TVL figure, reporting it at $1.09 billion.
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On Sept. 30, Cointelegraph reported that Rari’s TVL had topped $500,000, so the doubling of collateral has taken about two weeks. (DeFi Llama, meanwhile, estimates TVL at $889M but going up fast.)
Rari launched in July 2020 to automate DeFi by optimizing and moving users’ funds to the highest yielding incentives at the time. It gained a certain amount of attention at the time as it was launched and run by teenagers and those just out of their teens.
Recent momentum has been driven by a number of liquidity pools that offer higher than industry typical returns. It is currently offering a 21.67% annual percentage yield (APY) on USDC deposits and 26.43% APY in the DAI pool.
Its Fuse protocol has been extremely popular as it allows users to create custom lending and borrowing money markets with any assets and unlimited parameters.
The top pool called “Tetranode's Locker” has $655 million supplied, or 62% of the total, across 18 crypto assets earning various yields. Within that pool, the OlympusDAO sOHM token is currently yielding a whopping 7,594% APY.
OlympusDAO is an algorithmic currency protocol that allows users to supply crypto assets such as ETH or DAI to create bonds that back its native currency OHM. The complex bonding process acts as a hybrid fixed income product and a derivatives contract with quotes provided in OHM for trades at a future date.
Rari Capital thanked the “Ohmies” for helping to propel its TVL to record levels.
Rari also offers permissionless pools, which allow any user to create any pool of assets, including NFTs that offer any interest rates.
Venture Partner at 3SE Crypto, David Silverman, congratulated the young team on the achievement:
“Huge congrats to @JackLipstone @jai_bhavnani @davidslucid and the whole @RariCapital team!”
Like most in the DeFi sector, the Rari protocol has a governance token that is called RGT, which has been performing well recently.
Related: There’s more to DeFi than just providing liquidity
RGT hit an all-time high on Monday, Oct. 11 when it surged to $34 according to CoinGecko. It has gained 50% over the past two weeks and is up 93% over the past 30 days. At the time of writing, RGT was changing hands for $29.77.
Rari Capital was exploited for $11 million in May, which caused token prices to crash to $4.80 following the hack.
Read on here Cointelegraph
