Rift Finance

Today’s liquidity structures are parasitic to DAOs; they drain DAO treasuries and shrink market caps. Rift allows DAOs to deploy governance tokens from their treasuries to deepen token liquidity without having to give up ownership. The protocol pairs these governance tokens with Ethereum from liquidity providers. By working together, DAOs receive the liquidity they seek and Ethereum depositors receive natively high and well-diversified yield. As a result, both parties are able to achieve their goals in a way that they would not be able to alone.

DAOs across several leading Layer 1 blockchains, including Ethereum, Terra, Fantom, and Injective, utilize Rift to unlock sustainable liquidity.

Decentralization and tokenization are at the core of Web3.

As such, Decentralized Autonomous Organizations (DAOs) play a central role in this new digital economy. A DAO is a community-governed entity with a core mission and shared treasury. The DAO landscape is diverse; they operate DeFi protocols, pool capital to invest as funds, and collectively own art. Many of these projects choose to issue tokens for governance and utility purposes.

Achieving significant liquidity remains a major pain point for these tokenized DAOs. Poor token liquidity leads to a vicious cycle of high entrance costs for new community members and little incentive to participate. Current liquidity structures exacerbate the issue further by forcing DAOs to deplete their treasuries to mercenary capital that can yield farm projects to extinction. These solutions are unsustainable and put these DAOs at great financial risk.

As building blocks of the digital economy, DAOs need a sustainable financial foundation and Rift is building the liquidity infrastructure to help.

Rift deepens token liquidity through restructured incentives. By understanding the needs of different types of users, Rift empowers users with differing goals and risk profiles to work together and achieve synergistic outcomes.

Achieving sustainable liquidity remains a severe pain point for tokenized DAOs. To achieve deep liquidity for their governance tokens, DAOs are often forced to deplete their treasuries to mercenary capital that yield farm their projects and dump on community members. Both the size and value of DAO treasuries decrease as a result of this as the participants in these systems are profit motivated, rather than community-focused members who care about the long-term success of the DAO.

Instead of paying for liquidity, Rift empowers DAOs to achieve sustainably deepened liquidity through partnering with profit-motivated individuals without sacrificing token ownership.

Through the creation of index funds in the 1970s and the Uniswap protocol in 2018, we've learned there is immense power in simplifying the investment experience to allow for the passive deployment of capital. It's possible to earn a high yield on crypto-assets today, but often users are forced to navigate complexities such as variable rates, impermanent loss, and secondary asset exposure to achieve these returns. Through the nuanced restructuring of incentives, Rift earns liquidity providers double rewards and reduces the risk of impermanent loss through partnering with DAOs.

Rift allows DAOs to deploy governance tokens from their treasuries to deepen token liquidity without having to give up ownership. The protocol pairs these governance tokens with Ethereum from liquidity providers. Paired assets are then deployed to DEXs to allow DAOs to receive the liquidity they seek and Liquidity Providers to receive natively high and well-diversified yield. As a result, both parties are able to achieve their goals through redefined incentive structures.

Liquidity Providers earn double rewards and reduce the risk of impermanent loss through partnering with DAOs.

DAOs can deploy governance tokens from their treasuries to increase token liquidity without having to give up ownership.