In an important development, the lending market has gone live on the Rari Capital as users now can stake DAO assets on the platform. This newly added facility will help users to borrow stablecoins and stake assets, thereby bringing a new capability to the entire DAO and decentralized finance (DeFi) ecosystem.
In terms of use cases, users can deposit the xSDT (staked SDT) to borrow FRAX. In turn, this borrowed FRAX can be used to earn an extra yield that is over and above the original yield of the token. In other words, users can enjoy double benefits on their holding. This is indeed an amazing offer.
$1M DAO Lending Initiative Fuels Crypto Staking Momentum
It is important to understand that users must have a continuous and strict vigil on their assets. This is because, in the case of a market downturn, users can choose to liquidate these assets. If the assets are not accurately monitored, one can miss out on this liquidation opportunity. The prominent assets which are part of the lending list include FRAX, sd3crv, SDT, sdeursCRV, xSDT, and FEI. In addition, users can also choose to borrow sdeursCRV, FEI, sd3CRV, and FRAX on the platform.
Approximately $1M worth of assets has been invested to fund this particular attempt. This huge investment explains the sincerity of the platform to emerge as the leading player in the lending market segment in DAO assets. It will be interesting to see the level of enthusiasm and response this new development is able to bring to the staking industry. The proposition of borrowing and lending assets and then using the digital assets as collateral is gaining prominence worldwide and this new event is sure to bring more energy and pace to the category. To sum up, this new capability comes across as a booster shot for the entire crypto domain and will help the industry to spread its wings far and wide.
