Raft - $R you ready? – Raft Live Demo and Q&A Session

baby [Music] yep hello good okay I never think maybe we can start and then people will come later I guess um in the last event just ended so hopefully we'll get some more people um okay um so hi everybody um my name is David I am one of the co-founders of raft uh today we're going to be talking about wrapped um I think um what I want to do is just to have a quick quick walk through uh of the products of the website have some you know super quick peer comparison and then we're going to be doing like a live demo uh about uh how to use the protocol how to Mint or stable coin how to repay uh how to use the leverage transactions and how easy it is to actually get leverage on state thief and other coins using raft um so um just in some preliminary thoughts um the stable coin itself is a decentralized stablecoin that's backed by staked if and Oris at this point we have plans to add other different kinds of collateral in the future um but the key is to use stable coins that cannot be censored so we want to go with sensorship resistant collateral and just use that um as our collateral base we have discussions in our Forum right now about adding different kinds of collaterals so people can you guys are feel free to contribute to that if you want um so what is raft raft is a what I I would consider it as a CDP protocol what that means is that we take uh various forms of collateral and then we issue our own decentralized stablecoin which is pegged to the US dollar through various mechanisms um if you borrow so basically you would deposit State thief and then you would borrow R you pay a one-time fee um which at this point is set to 0.5 to 1 depending on which lateral you want to um you want to borrow and then you can keep your loan open for as long as you want and then repay on your own terms um at this point we have just in one month we got something like 59 million dollars of tvl that's split across steak teeth and Oris most of it is day teeth at this point and the market cap of R is 30 million dollars so uh what we wanted to do here is to create a stable coin that's super easy to generate super easy to use and we built the entire back end and as well as the the ux focused on creating a very lightweight experience for people so it's super easy to to deposit um and we kept it super simple so unlike other interfaces where you can borrow stable coins uh we wanted to encourage retail users to use this and as a result of that I think we have something like 400 or 500 open positions already in a month which is uh quite substantial if you consider the number of dial borrowers for example um which is you know not much higher despite having a several several times higher PDL um so here yeah so if you go on app.rep.5 this is our primary front end um what you can do here um is you're presented with two different use cases so the first one is to generate R that's the normal use case where you would deposit collateral and get the stable coin and then it's up to you manually to then you know provide liquidity you can you can use it for whatever purpose you want you can spend it um or use it to then swap it to a different different asset if you want to get exposure to something else and then the other use case is called Leverage and that's our that is a very unique feature that we have developed in like together with the uh with the whole project and that is um going to be our primary use case and one of the biggest uh features that I think people are looking forward to this was just released yesterday so um I'll be doing a live demo of both of these um okay so let's just jump into it so when you are when you go on the website that generates I think like um the UI is is quite intuitive but you have some protocol stats at the top so you see the total value locked number at the top you see how much tvl there is of both assets you see the total market cap of R and you see the protocol level collateralization which means um the basically for every R there's uh 1.8 dollar worth of collateral that's backing it at the moment then that's at a protocol level um if you want to open a position it's very easy um so we have pre-filled with this with um generating the minimum amount of r that you can borrow which is three thousand the reason why it's set at three thousand is that um for liquidations to happen efficiently we have to leave a buffer for people to um to actually take that trade and make make it more likely that the liquidation actually happens um and if the position side is too low and the amount of debt is too low uh let's say you know ten dollars nobody will liquidate that position for a dollar profit because um the gas fee will be more than the actual profit that you can make as a liquidator so um if you could click like auto save borrow which which is just a pre-fill so you would feel with all of the stake view that you have in your wallet and all the bar that you have as well one of the unique features it also makes the user's life easier is you can actually select um two different kinds of State teeth so you don't have to go and go to Lido's website and wrap it yourself you can just select it here yourself so if you have wraps they keep in your wallet you can just click that if you have stake teeth you can click that there's really no difference um and then we do the conversions on our back end so you don't have to go off to the sides if you happen to have one and then come back um it just makes your life a little bit easier so I have steak teeth in my wallet so just go with State teeth let's say how that is it like five steak teeth here and then um we have to bear in mind that the minimum polarization ratio is 120 so the here it doesn't let me open the position uh so let's say I just want to borrow 4000r low risk 240 percent um and then you can see the protocol fee is 0.

5 um obviously since there's no um account abstraction here what you have to do is go through multiple Hoops transactions um multiple steps you have the first whitelist um mistake teeth then you have an approval and then you actually have the execute position um I think um the ethereum core depth team are working on a a new um account abstraction thing that will be similar to what Stargate has at the moment so you won't be able to you won't have to do these steps manually from that point on you'll be able to just uh do it in a in a one step so it'll be way easier for people to do that um you know Max approve here otherwise I don't recommend doing that but just for the speed um yeah so um while the transactions are going through um what we wanted to do here is just like on the ux side just uh show it that you know there's multiple steps involved um so that people don't go off-site and then come back to it so now you can execute the transaction um and you can see the gas fees are pretty low so it's 15 at this point to to borrow and if you add all of them together it's going to be less than twenty dollars so we actually have made a very conscious effort to keep the gas fees low so that we don't alienate all these retail users by seeing like a several hundred dollar fee I think at this point um the yes so you can see that it's gone through but um the gas fees are one of the lowest of any CDP protocols um and hopefully even in a in a bull market scenario if you get way higher gas weight is going to be within a bearable threshold so you can see like here transactions gone through you have a little confirmation thing uh what you can do what we have with user with is that you have generated the r and you can just click add or to wallet super easy to to keep track otherwise uh metamask or whatever wall you're using might not pick it up click continue and you're done and basically here what you see is you have a summary of your position so you have whatever your collateral is here in this case is five State thief and your debts that you have to repay Equalization ratio which is updated um and then what you can do here is you can do um partial withdrawals partial extra deposits depending on what you want your collateralization ratio to be so for example you see oh if prices or the safety price has gone up uh what you want to do is withdraw a little bit so you can actually go and and withdraw um let's say two steak teeth and then it will show you that your position after will be um 145 collateralization which is you can consider it safe enough or you can partial repay or partially borrow more and you can do all of that in one UI and we have a closed position button which I'm going to Showcase here so um what that does is that it closes your position repays your debt and then with the contents of your wallet and then also um get your collateral back um what is an important thing here is that um if you're depositing State thief or if you're depositing any other collateral raft does not take a fee that we don't skim off the top from the collateral's yield like other similar protocols do you keep your entire collateral but you have to keep you have to repay slightly more uh of your debts when you close your position so this is how we take fees um yeah so here I'm going to approve R unless it's approved I can go ahead and execute the transaction um and let's see it said as you can see it costs like ten dollars at this point too to um to repay which is um it's pretty good and then you're done so you successfully close your position so this is this is the the end of it so borrowing is super easy um and what I want to show you guys here now is the other UI which is the primary use case here so I think this will interest a lot of people and what you can do here is you can definitely stay teeth in this case I'm going to do free state teeth and then what you can do here is you can choose what leverage you want so let's say you you are a statement holder and you're bullish on the price of ease and you're also bullish on the staking yield and you want to keep accruing a higher staking yield into the future what you can do is you can use this little slider which is a super it's a very um user-friendly and just choose you know whatever leverage you want to go up to like 5x 6X it will show you like what the liquidation price will be compared to the current price uh what sort of drop you can survive for your position to be liquidated um show you the total cost of leveraging up and show you the leverage APR that you get from your staking at the same time so I'm gonna go with something a little bit more conservative here 2.5 x something like that it will show me the total cost show me the leverage APR if you're a more advanced user what you can do is you can choose like your slippage here which is really through one inch at this point um and then um but otherwise just leave it at leave it at the standard one um yes this is also involves white listing so let's do that it's like a cost a dollar fifty um and the interesting thing here is that this feature actually is rooted through R so the user doesn't actually have to know too much about the entire existence of a stablecoin but what happens in the background is that we use a flash minting of the stable coin itself and then we use that at deposit that as collateral um into the protocol um and then yeah let's do an approval again stake teeth and do Max approve again it's another two dollars here um so yeah because of the Flashman thing that we kind of eliminate this entire need for using something called looping looping is a looping is a transaction where you would have to you would have to borrow swap The Borrowed asset redeposit that as collateral and then it will cost you a lot of gas because you have to do a repeated thing and then again and again here we eliminate that and we just have a single transaction to do this and you can click execute it will cost something like 25 dollars which is um pretty reasonable um for for leveraging up and then wait for the transaction to execute and this is all done through the one inch API we will have a support of other routers as well the reason why we're using one inch and we're not just using a single step swap through a through a protocol like balancer is that the liquidity for R is split across different venues so we have um we have liquidity imbalancer we have liquidity in Maverick we have liquidity in unit Swap and then what one inch does is it just Roots through the most efficient route so that's the best way to do it um and then yeah so Leverage is now set up to 2.5 x you have the exposure numbers here we have the collateral here we have a liquidation price here so you can see I can survive a 28 drop below the current price before my position is liquidated and my leverage at this point is 2.5 x so my APR on stake teeth is 9.87 so you've done this in like a super simple transaction um and you I have gained an exposure to 2.

5 times my collateral um and then here is the liquidation price super easy what you can do is you can withdraw in a symbol one simple transaction close position super fast and it will show you the total cost of closing the transaction you can click execute and it will be done in uh in uh in a very uh simple way so this is um yeah I can do that as well to show you guys how much it cost to close the transaction will be twenty dollars but as I said like the what the target audience here is like having people who are who wants a long-term position so you can see this cost is a you know one point something percent but if you wanna compare that to for example maker dial you have to pay a three point um 75 rate to borrow against die at this point um which is over one year so if you want to keep your position open here on raft for at least a few months it will always be way cheaper than using maker Dow um done so my position is closed and it's uh and we have withdrawn the stake teeth so um we're all done here um I think uh this kind of sums things up um and gives you guys a good a good summary of everything that we have um I think uh otherwise um you one of the I just wanted to point you guys to some of the um good resources that we have that you have if you want to learn more about raft or you want to learn more about how to use the protocol we have very good uh like a feature set that is just summarized here for people so you can you can learn more about it here we have a one-step leverage thing that you can um like a website that summarizes the fees the maximum leverage that you can get I have a maker raft shows you the fees that you have to pay if you use Ava maker you can have a little bit of a calculator of what sort of Leverage you want and what your liquidation price will be what your leverage appear I will be using the current state APR and it kind of if you are interested in the actual back-end implementation about how this works you can go and check it out and follow the step-by-step um step-by-step flowchart that we have here um and then if you're interested in even more I would recommend that you check out the docs doc suite update very frequently it's at version 8.2 at this point um and if you're more interested in the leverage use case as well we have various examples here that you can you can check out um we have flowcharts we have all the all the mats here presented for you if you want to learn more about um about the technical details about how it works we also have a calculator here um that you can use for more advanced calculation that you want to make on your side um uh in addition to this um we have other features here flash minting is is a pretty interesting one that is also used for leverage liquidations Arbitrage all this kind of stuff if you're a developer I would check this out and then getting involved I think like this is relevant to most people especially the governance Forum so if you want to get more involved with raft and propose anything in the governance Forum I think that is the place to go we have very involved and Technical discussions there so that's pretty good um and then um yeah so I think uh one of the other resources that we that I like to direct people is our Dune dashboards we have three of those that are updated frequently and then we also have a parsec board which shows which is a pretty good place to show all the positions that are currently open on rafts so you can see that there are some larger positions here I think the largest position in this wallet which has borrowed 11 million dollars worth of r to leverage up with you currently have 16 million dollars worth of collateral you can see the health of that position so it's like 40 over collateralized before they're liquidated something like that um and then you see all the outstanding positions here uh as well as the price of R and everything else so I think that's it from me um if you guys have any questions that would be the time nope okay perfect thanks guys thank you