- 9 Mar, 23
Rari Governance (RGT) 101: Influence the Future of Rari Capital
Decentralisation forms the basis of blockchain-based projects. Bitcoin’s vision was to solve the problems of centralized financial institutions, which is why cryptocurrencies were built with a decentralised architecture to solve the problems brought on by centralization. This led to the birth of governance tokens. The Rari Governance Token (RGT), which is the topic of this Zatrun.com article, is the governance token of the Rari Capital platform, a blockchain project that ensures decentralisation.
Rari Governance Token (RGT) enables the decentralisation of the Rari Capital blockchain project. Token holders can spend their assets to actively influence the direction and features of the protocol while also maintaining the decentralisation of the project.
Table of Contents
What is Rari Governance Token (RGT)?
Rari Capital is a blockchain-based DeFi platform where users can invest their cryptocurrency assets in the highest-yielding investment options automatically rebalanced by Rari Capital. These changes take advantage of the “Lego effect” of DeFi protocols and offer returns for previously unobserved risk avoidance mechanisms. Rari started as a lending platform and then added features such as rebalancing between stablecoins and protocols. As a result, users can currently get the maximum returns by lending annually.
Rari Governance Token (RGT) is the governance token of Rari Capital. The cryptocurrency, created on the Ethereum blockchain using the ERC-20 standard, supports Rari. Therefore, the token can be used for various purposes such as managing the protocol and saving gas fees. The platform is accessible to anyone in the world due to its decentralised architecture, enabling people who cannot access banks in developing countries to receive their payments.
According to the project’s blog, Rari Wealth develops technologies that allow people to profit from idle capital without requiring user participation. The fundamental use case of the DeFi protocol comes from an automated, unsupervised fund built on the Ethereum blockchain. Users can lend their cryptocurrency funds on the platform as debt, relying on the underlying smart contracts. The system then examines DeFi applications to find the best yield opportunities. Portfolios are automatically rebalanced using both cryptocurrencies and stablecoins to offer the highest profit.
What is RGT Used For? Is It a Good Investment?
In addition to serving as Rari Capital’s governance token, the Rari Governance Token (RGT) allows users to earn yield from their contributions to the liquidity pool. By doing so, users can take advantage of the benefits of DeFi by earning money through cryptocurrencies. The RGT coin is specifically used for the following services:
- Governance: RGT coin holders have the advantage of participating in voting through on-chain governance.
- Liquidity mining: Users can contribute to liquidity pools on DEXs to earn liquidity mining rewards and a share of DEX transaction fees.
Like all cryptocurrencies, the RGT coin is a highly volatile digital asset. Before buying, you should thoroughly examine both the token and the accompanying platform. The protocol was created on the Ethereum blockchain and is one of the most advanced ecosystems in the DeFi space. The project recently introduced the “Market” feature, which allows users to use the Polygon network. Therefore, the protocol is continuing to evolve. However, all financial transactions in Rari Governance Token are carried out through Ethereum smart contracts, providing the platform with additional transparency.
Crypto investors can earn high returns on their crypto assets through the platform’s passive income products. Users can access various open position rate options through Rari’s Fuse protocol, for example. Meanwhile, Rari Governance Token has a total supply of 10 million and is currently the 1042nd largest digital asset. The token trades at a unit price of $0.32 and reached an all-time high in January 2022 when one RGT coin was worth $50. Therefore, we can say that the asset is currently trading at an extremely low price.
Rari Governance Token is currently only available for purchase and sale on the Bittrex exchange. Therefore, investors interested in RGT coin must follow the purchase steps by registering with Bittrex. The cryptocurrency is listed with various trading pairs like the US dollar.