Cryptocurrency
Teen Crypto Entrepreneurs May Be The Real Adults In The Room
As reported by Forbes, “It’s hard enough being a teenager these days. Between canceled proms, delayed starts to college, and getting stuck back at home just when they thought they were out for good, teens these days have it tougher than ever. For the tight-knit group of friends and business partners building Rari Capital, however, one […]
As reported by Forbes, “It’s hard enough being a teenager these days. Between canceled proms, delayed starts to college, and getting stuck back at home just when they thought they were out for good, teens these days have it tougher than ever. For the tight-knit group of friends and business partners building Rari Capital, however, one more type of pressure is on the list – trying to build and develop a decentralized finance (DeFi) business.
“Founded by Jai Bhavnani, 18, Jack Lipstone, 19, and David Lucid, also 19, Rari Capital is a newly-launched project in the incredibly hot DeFi space. Billed as ‘The Smartest Stable Robo-Advisor’, Rari is a cross between an aggregator deploying lending strategies across multiple liquid protocol pools and a more traditional active manager with proprietary allocation strategies.
“To be fair, there’s really nothing traditional about it. The yield aggregation strategies Rari deploys have to do with various new protocols such as those available on Compound, Aave, Synthetix, Curve and others. These protocols, all grouped broadly under an umbrella known as DeFi, allow anyone with an Ethereum-based wallet to access the protocol and lend their funds. This is a process popularly referred to as yield farming, in a nod to the ‘planting’ of stablecoins (a type of Ethereum-based token meant to mimic the value of the US dollar) and the subsequent ‘harvesting’ of yield back both in interest as well as tokens native to each protocol. These tokens can then be exchanged for more stablecoins, enhancing the yield gained, or used to stake a claim to the governance of the underlying lending protocols themselves.
“While undeniably still a bit over complicated for the average user, yield farming has exploded onto the scene in 2020, with the total value locked in these strategies having recently eclipsed $4 billion and more than doubling in just the past month, according to industry data provider DeFi Pulse…”