The Mystery of the Strategy Allocation Pie Chart

Going to the source, the Rari home page, we can see the "Strategy Allocation", depicted as a pie chart.

• DAI
  • Fuse 18, named "Olympus Pool Party": 38.8%
  • Fuse 7 or "Chainlinkgod's / Tetranode's up only pool": 37.2%
  • Fuse 6 aka "Tetranode's Locker": 24%
• USDC

  • "Olympus Pool Party": 18 38.9%

  • "Tetranode's Locker" 38.9%

  • mStable 21.4%

mStable is not listed as a Fuse Pool, and is an interesting innovative protocol that pools together a basket of algorithmic stable coins and, if we are to believe that 24% figure, it is quite possible that that USDC is locked up for a period of time as there is evidence of a couple of large transactions, but no recent activity.

This submission assumes a nominal amount of knowledge regarding decentralized finance, better known as DeFi. It also assumes a small amount of knowledge regarding blockchains and Ethereum, but not a alot.

Who is Rari?

The Rari Capital notion site defines itself as "an easy interface to earn yield within DeFi". Classified as a yield aggregator, its claim to claim is that any user can create a lending and borrowing pool of their own called a Fuse.

What is a Fuse?

The pool owner is able to adjust several parameters including; what assets that can be used as collateral; how much they want to add to the 10% platform fee; the liquidation incentive (where catching under-collateralized accounts is rewarded); and several other options as well. The pool can be public or private. When a new pool gets fired up, basically a fork of the battle tested and popular Compound lending protocol.

What is a Vault?

This was not well defined in the documentation. When you go to the Rari Portal where you can see all the Fuse Pools, you can alternatively provide liquidity by depositing into one of two vaults, USDC or DAI. Once you choose one of those from the Products/vaults menu, it is called a "pool" again. The documentation talks about three pools, including an ETH pool. The ETH pool does not currently appear to be active. Basically the documentation states that they will choose from staking any or all of four well known, audited and highly liquid defi protocols: Aave, dYdX, mStable and Compound. In addition they generate yield by supplying USDC or DAI to the Fuse Pools. They act as a yield aggregator, algorithmically seeking the best possible yield within those confines.

It turns out, apparently, that the best yields come from supplying money to those Fuse pools, if my analysis is correct.

So to answer first question ...

• USDC and DAI each have two fuses in common. 62.8% of each pool is distributed to the same pools, fuse pool 18 and fuse pool 6
• USDC has 14.9 % more in Fuse 6 than the DAI pool
• DAI has 37.2% in Fuse 7. USDC has no money listed as invested in

All of this is based on the Pie Chart "information" on the official site

Unfortunately, it seems this information contradicts the "Recent Trades" data. I am looking at the Rari Portal from their official website.

• USDC
• DAI

The "Recent Trades" data shows a whole bunch of transfers to Fuse7, Fuse6 and Fuse18 regardless of whether you are looking at the USDC pool or the DAI pool. So, the strategy pie chart maybe is long term or has changed or will change or...?

You can follow those "Recent Trades" on etherscan and look at transactions. We are able to get the address of the USDC controller contract and the DAI contract. Using the contract address and the block ID, we can query the transaction using the ethereum.events_emitted table.

The events_emitted fields contain a mapping (aka JSON object). We are interested in the "pool" key and the "amount" key. Using this information we are able to view the flow out of the USDC pool and categorize the volume by the different values of "pool" these values distinguish the fuses from each other. In fact, the DAI contract uses a different pool number mapping scheme for these fuses although both label Fuse7 with 101.

For both DAI and USDC the three fuses that show nearly all the volume match fuse6, fuse7 and fuse18.

USDC pool

• pool 108 => Fuse18
• pool 101 => Fuse7
• pool 109 => Fuse6

DAI pool

• pool 100 => Fuse6
• pool 101 => Fuse7
• pool 102 => Fuse18

Above: A screenshot of Rari Capital Earn documentation

Appendix

Geeking out a bit with some methodology

Conclusion:

After some research, going on the word of the Strategy Allocation pie chart, looks like it was a bad idea. Querying the labels and events table of the Ethereum schema of Flipside's database, we were able to get a picture of large flows, of either USDC or Dai, going mostly into one of the three pools described above whose names are too long for me to retype. While there is a slight difference in how the two pools have allocated their funds to the pools, and USDC has funded more pools, in a small way than DAI, but for the most part they are distributing the money in a fairly even way to these three pools:

Key Players:

Fuse6 => "Tetranode's Locker"

Fuse7 ==> "Chainlinkgod's / Tetranode's up only pool"

Fuse18 ==> "Olympus Pool Party"

Why we only looked at three Fuse Pools for each of the USDC and DAI vaults.

It is clear here from the graphs, that, while there were several other Fuse Pools that received some deposits, the bulk were divided amongst the three main pools. The numbers are just local identifiers of the Rari controller USDC and DAI contracts.