So, what is Rari Capital’s FUSE?
It is a protocol that supports isolated interest rate pools. It allows you to create different public or private pools for lending and borrowing assets of your choice. You can customize what collateral you want to use, how liquidations are incentivized, how much admin rate you want to collect, choose different interest rate models, oracles, reserve factors, and much more. With these parameters, you can adjust how much risk you want to partake without affecting or compromising the safety of other pools on fuse.
Fuse allows you to enter and exit lending and borrowing positions using unique assets and settings. Much like pools on Compound or Aave, fuse works similarly but allows you more customization and gives you more options.
If however, you don’t wish to create your own pool there are many other public pools you can choose from to deposit your assets into. You do have to be careful as different pools have different risk settings. You can see how risky individual pools are by their “risk score”. The highest score a pool can have is “A++” and the lowest is “F” or even worse “UNSAFE”. Some of the pools are directly supervised by Rari Capital and are provided with high liquidity, meanwhile, others can be composed of unknown risky assets which can have very little liquidity and are therefore much more dangerous and have a higher chance of being exploited by price manipulation or other malicious intents.
So let’s take a look at one example of how you would lend or borrow xFODL on FUSE .
First, you need to connect your wallet with the Rari Capial platform, just as you would with any other.
Then, you need to go to the Fuse tab on top of the dashboard.
Next, you need to search for a pool that contains xFODL. To make it easier, you can use the search bar and it will show you all the pools that have xFODL in them. For this example, we can use 0xb1’s Kitchen Sink pool numbered 127. You can immediately see the total value supplied and borrowed in this specific pool.
Once you open it up you will be able to see all of the supply assets on the left side and borrow assets on the right side, how much liquidity each asset has and what their APY and TVL are at that moment.
To lend your xFODL, you will need to look for it in the “supply assets” column on the left side and click on it. You then need to enter the amount of xFODL you wish to supply. It will automatically let you know the APY, your borrow limit, and Debt Balance. If you have not borrowed anything yet, your borrow limit and debt balance should be $0.
After you click confirm and approve the transaction in your wallet, your total supply balance above the “supply assets” section should change. There you go, you have lent some xFODL!
If you wanted to borrow another asset against your supplied xFODL or vice versa, you can do so by clicking the desired asset in the right column or the “borrow assets” section and go through the same process. You will be able to see how much the borrow APR is for that particular asset and what your borrow limit is, which in our example above would be $138.57. After you have entered your desired amount, click confirm and approve the transaction. Your new borrow balance should show up above the “borrow asset” section. There you go, you have borrowed an asset against your xFODL!
IMPORTANT THINGS TO CONSIDER: As with any other defi protocols, you have to consider the risks you are taking by using these products. When using fuse, you should double check everything in the pool, beyond just what the “risk score” is. Check if the pools settings meet your risk standards or if anything is set up nefariously. Rari Capital also advises not to deposit into pools with low liquidity, because they can go on “bank runs”, or simply lock your funds in the pool.
Hope this helped you in any way friend! Cheers!
Related Guides that may interest you:
1.) HOW TO BUY THE $FODL TOKEN
2.) BASIC GUIDE FOR LEVERAGE TRADING ON FODL
3.) HOW TO USE BOTS ON FODL
4.) HOW TO FARM FODL-MATIC LP ON QUICKSWAP IN LESS THAN 10 MINUTES
5.) HOW TO DO SINGLE CURRENCY STAKING ON FODL
6.) HOW TO INSTALL WALLET CONNECT AND CONNECT IT TO FODL FINANCE
“Disclaimer: This article is not trading or investment advice. The above article is for informational and educational purposes only. Please do your own research before purchasing or investing in any cryptocurrency or digital asset.”
