One altcoin that powers an Ethereum-based decentralized finance (DeFi) platform is defying broader market woes by rallying in a big way. Rari Governance (RGT) is the governance token of Rari Capital, a DeFi suite that allows participants to borrow, lend and earn yields on cryptocurrencies. Holders of RGT can take part in the protocol’s governance […]
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The largest Ethereum (ETH) whales in the world are accumulating decentralized oracle network Chainlink (LINK) and several altcoins that prioritize decentralization. According to blockchain tracker WhaleStats, the top 100 Ethereum whales are currently most interested in a pair of stablecoins and over a half dozen altcoins, with Chainlink in sixth place and seeing an average […]
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An altcoin designed for decentralized finance (DeFi) surged 56% to a new all-time high after it launched on popular crypto exchange platform Binance. Binance says it is launching support for Rari Governance Token (RGT), the Ethereum-based governance token of Rari Capital, a DeFi platform allowing participants to borrow, lend and earn yields on cryptocurrencies. RGT’s […]
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The billion-dollar TVL has been driven by massive yields on the DeFi aggregation platform.
The total value locked 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.
On Sept. 30, Cointelegraph reported that Rari’s TVL had topped $500,000 so the doubling of collateral has taken around a fortnight. (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 offering higher than industry typical returns. It is currently offering a 21.67% annual percentage yield 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 propel its TVL to record levels.
Thank you Ohmies https://t.co/EL5M4yzeI4
— Rari Capital DAO (@RariCapital) October 12, 2021
Rari also offers permissionless pools which allow any user to create any pool of assets including NFTs offering 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!”
The Rari protocol, like most in the DeFi sector, has its own governance token called RGT which has also 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 fortnight 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.
Rari's RGT token is plummeting on the news.
After a $11 million attack earlier today, Rari Capital is the latest decentralized finance (DeFi) protocol to fall victim to a high-priced exploit
The platform, which builds optimized yield vaults and boutique lending pools, confirmed the attack in a Tweet and said that a full postmortem is forthcoming:
There has been an exploit in the Rari Capital ETH Pool related to our @AlphaFinanceLab integration.
— Rari Capital (@RariCapital) May 8, 2021
The rebalancer has removed all funds from Alpha in response.
We are currently investigating the situation and a full report will be shared once everything is assessed.
Per whitehat hacker Emiliano Bonassi, the exploit appears to be an “evil contract” exploit, in which an attacker ‘tricks’ a contract into thinking a hostile contract should have access or permissions. Alpha Finance announced in a Tweet that the hack was related to Rari’s interest-bearing ibETH vault, but that no Alpha funds were at risk:
Funds are SAFE on #AlphaHomora.
— Alpha Finance Lab (@AlphaFinanceLab) May 8, 2021
We are notified that @RariCapital has suffered from an exploit that was due to the incorrect assumption when using HomoraBank contract, as they were setting up an ibETH pool on their platform.#Alpha team is here to help.
The hacker’s wallet currently holds 4,005 ETH worth over $15,000,000, but a portion of those funds appear to be from a separate exploit.
Like many before him, the attacker appears to have considered sending a message to the Rari team, but cancelled the transaction. Because he paid a low gas fee, however, observers were able to notice the message as a pending transaction before it was cancelled:
The hacker has left a base64-encoded message saying
— banteg (@bantg) May 8, 2021
rari=REKT
alpha=ok # saved rari 6mhttps://t.co/WQpiPksDOX pic.twitter.com/ruMH8Wam5s
While taking the aborted victory lap, the attacker’s message also seemed to imply that the Alpha Homura team prevented an additional $6 million drain.
Already users are taking to Twitter to speculate about what form the team’s compensation plan might take. Compensating users affected by hacks and exploits is becoming an increasingly common practice, most recently with EasyFi revealing their compensation plan after a crippling $60 million exploit.
The Rari Capital team has often been a target of both community support and derision. The team is notably young, with one developer reportedly being 15 years old. One of their key investors, Twitter user Tetranode, joked on a recent Up Only podcast that, despite only being middle aged, the team frequently and playfully taunts him as a “boomer.”
As such, while some have criticized the team and attempted to blame youthful inexperience for the attack, other have noted that security practices in DeFi are continually evolving and have been quick to voice support for the team, including SushiSwap CTO Joseph Delong:
This is a tragedy, we love that team
— Jo-sofa De-lounge (@josephdelong) May 8, 2021
$RGT, Rari's governance token, is down 23.24% to $13.35 on the news.
