Trending Project

Trending Project: RAGE

Perps and Asset Management
Jack Inabinet Jack Inabinet Dec 26, 20222 min read

Ticker: RAGE (No Token)
Sector: DeFi - Perps and Asset Management
Network: Arbitrum
Hotness Rating: 🔥🔥🔥🔥

Rage Trade initially developed an omnichain ETH perp that takes advantage of concept recycled liquidity: the Protocol deploys 80% of LP TVL to yield generating protocol (Curve, GMX, SushiSwap, etc.) and uses the remaining 20% to provide concentrated liquidity for traders.

On December 12, Rage Trade opened its much anticipated delta neutral GLP vaults to depositors. These vaults aim to pass through high yields offered by GMX’s liquidity provider token while neutralizing GLP price risk for depositors. Two vaults were deployed. Both were filled to capacity immediately.

Combined, these vaults increased Rage Trade’s TVL by over 300%, with the risk-off vault contributing $3.35M in USDC and the risk-on vault contributing $6.6M in GLP, at the time of analysis.

Source: DeFi Llama

Self-imposed vault caps minimized TVL inflows. Without these, it is highly probable that the growth in TVL would have been much greater.

At the time of analysis, the 7-day average median yield of DeFi was 2.29% while U.S. 1 Month T-Bills yield 3.73%. Trad markets are yielding more than crypto: what a trip!

Source: DeFi Llama

While partially driven upwards by the fixed term, yields on US Treasuries do not carry any default or smart contract risks, both of which are present in all sources of crypto native yield.

Rage Trade’s immediate explosion in vault TVL is a strong signal for the Protocol’s delta neutral vaults in and of itself. Crypto natives are famished and seeking yield!

Rage Trade is a gateway to the past, providing astonishing yields on high quality assets like the 2021 bull market all over again. The risk-on vault yields a mind boggling 43.1% APY! All while hedging against price risks from GLP’s volatile underlying collaterals (primarily ETH and BTC).

Source: Rage Trade

While there is currently no token for the protocol, interacting with dApps is a proven formula for setting yourself up for a future airdrop. To potentially qualify, trade Rage Trade’s ETH perp and provide liquidity to the Protocol’s recycled liquidity or delta neutral vaults.

Hotness Rating (🔥🔥🔥🔥/5)

Jack Inabinet

Written by Jack Inabinet

280 Articles View all      

Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial apartment development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business and remains based out of the Seattle area.

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