At Rift, our mission is to supercharge DAO growth by providing a sustainable liquidity foundation for tokenized projects. Today we’re excited to share that Rift is live on Ethereum! With new APY floors and lockup period features, Rift allows DAOs to customize their protocol-owned liquidity strategy as an alternative to toxic liquidity mining. The first ETH Vaults will open for public deposits from our community very soon!
Rift has helped over ten protocols achieve sustainable liquidity for their governance tokens. We’ve worked with established DAOs, like Injective and Trisolaris, to deepen their token liquidity and new projects, like Bastion and Aurigami, to launch their tokens with Rift’s liquidity infrastructure. Rift’s deployment to Ethereum and expanded functionality allow us to continue supporting DAOs at all stages of growth, wherever they are built.
How does Rift work?
Rift is a decentralized protocol that restructures incentives to improve liquidity across DeFi. Liquidity providers can deposit ETH into Rift Vaults to earn boosted returns. This ETH is paired with governance tokens provided by DAOs and deployed to a DEX to earn LPs swap fees and rewards. With Rift, DAOs achieve deep liquidity without relying on costly liquidity mining, and LPs earn double swap fees and rewards.
Customizable Vaults for DAOs
Rift allows DAOs to launch customized Vaults to meet their unique liquidity needs. DAOs can now deploy several Vaults simultaneously, each with customized APY floors and lockup periods. The APY floors can be set to competitive rates to attract ETH deposits. These APY floors are not a direct cost to DAOs, but rather provide LPs with enhanced impermanent loss protection in the case of extreme IL. As a result, Rift Vaults allow DAOs to attain liquidity at a fraction of the expense of liquidity mining.
Open Rift Vaults for LPs
The new Rift Vaults on Ethereum will be the first to open for public deposits. Soon anyone will be able to deposit ETH into Rift to begin earning double farming returns and protection from the downside risk of impermanent loss.
As a Rift LP, the upside is limitless. Rift LPs earn all the swap fees and rewards from the DEX position while only providing 50% of the capital. If a Rift Vault experiences impermanent loss, the LPs will be able to withdraw at least the base APY rate set by the DAO, except in the most extreme cases.
We strongly value the freedoms offered by decentralized financial services. However, there is an inherent risk in participating in any DeFi protocol, so please review Rift’s documentation to make sure you understand how the Rift protocol works and the risks associated with using Rift.
The first users to provide liquidity on Rift will also get an exclusive POAP for being early adopters of the protocol 👀
Learn how to participate as an LP and dive into the Rift Protocol mechanics. If you have any questions, drop them into the Rift Discord and join our weekly Office Hours call.
About Rift Finance
Rift is a decentralized protocol that restructures incentives to improve liquidity across DeFi. The Rift Protocol allows DAOs to deploy governance tokens from their treasuries to pair with tokens from liquidity providers. By working together, DAOs receive the liquidity they seek, and LPs receive double returns and reduced risk. DAOs across several leading Layer 1 blockchains, including Ethereum, NEAR, Fantom, and Injective, utilize Rift to unlock sustainable liquidity.