Introduction

Rari Capital is a DAO, which builds Defi products including:

• Fuse: Open interest rate protocol that provides users the ability to create and manage customizable lending/borrowing pools.

• Yield Aggregator: An autonomous algorithm that rebalances users' funds into the highest-yield opportunities. Staked funds also provide liquidity to Fuse pools for borrowers.

• Tranches: Peer-to-peer risk exchange protocol that utilizes the Yield Aggregator DAI pool for customized risk and return profiles.

• Pool 2: Incentives for RGT liquidity providers on decentralized exchanges.

In this analysis, we will explore the Fuse product, specifically the Dai pools and the USDC pools.

Analysis

Scope

1. Are the DAI and USDC Vaults using the same Fuse Pools to seek yield?

2. What differences can you identify?

Method

Identify Rari pool contract address (link)

• DAI contract address = 0xaFD2AaDE64E6Ea690173F6DE59Fc09F5C9190d74

• USDC contract address = 0x66f4856f1bbd1eb09e1c8d9d646f5a3a193da569

Then extract data from the table flipside_prod_db.ethereum_core.fact_event_logs.

1. Are the DAI and USDC Vaults using the same Fuse Pools to seek yield?

• DAI vault seeks yield in 3 fuse pools (link).

• Fuse6 has the biggest DAI allocation with 33.7M ~ 44%, following by Fuse18 with 23.9M ~ 31%, and Fuse7 with 19.2M ~ 25%.

• USDC vault seeks yield in 8 fuse pools (link). Top 3 pools allocated 99% of total USDC.

• Top 3 pools are Fuse7 - the biggest pool with 62.6M ~ 51%, following by Fuse6 with 32.7M ~ 27%, and Fuse18 with 26.1M ~ 21%.

=> Beside 5 pools with very small USDC allocation, DAI and USDC vaults are using the same 3 pools to seek yield which are Fuse6, Fuse7, and Fuse18.

2. What differences can you identify?

Let's see the daily allocation of each vault.

Allocation to both vaults were concentrated in a few big days in early November 2021, and January 2022.

• Top 5 days of each vault accounts for almost 70% of total allocation.

On the biggest day of both vaults, the 3 biggest pools of each vault were each allocated the same amount:

• DAI vault: 7M DAI to each vault on November 1 2021.

• USDC vault: 10M USDC to each vault on November 6 2021.

• On May 24 2022, USDC fusion pools' total allocation is 122.5M while the number of DAI fusion pools is 76.8M. USDC fusion pools has attracted more asset, and the much higher APY of USDC may be the reason for that (link).

Conclusion

• DAI and USDC vaults basically use the same fusion pools to seek yield.

• Allocation to both vault were concentrated in a few big days. And in those big days, assets were allocated similar amount to each fusion pool.

• USDC fusion pools have higher APY, thus attract more asset than DAI fusion pools.

Thanks for reading!