Around 2 months ago, we announced our plan to build leveraged token on top of Rari Fuse. We call it Fuse Leveraged Token, an open and fluid leveraged token mechanism that can be easily implemented by any project that controls fuse pool.
A couple of weeks ago, something unfortunate happened. Rari fuse was exploited by around 80 million and left some of the pool in bad debt. We feel that it is necessary to address this issue for our community.
To cut it short:
We still have all the intention to keep working on utilizing fuse as a leveraged mechanism. No changes in plans, full-on.
A couple of reasons why we make this decision
What doesn’t kill you will make you stronger.
There will be more eyes towards fuse, more security reviews will be done and more audits for sure.
We don’t believe that we can create a much safer and better mechanism on our own. It will not decrease the exploit risk significantly. Altho there are still some things that need to be clarified, we don’t believe moving away from building on fuse would be the most responsible and thoughtful move.
You have to admit that Tribe DAO ecosystem is full of Chads that had it rough in crypto just to thrive later. Both Rari and Fei were not without problems in the early days. We saw the Fei depeg and Rari previous exploit, it doesn’t change their determination to build better stuff for DeFi ecosystem.
We want to work together with all of these Chads
Quite self-explanatory, It is just the right fit for us. Tribe DAO has all the necessary tools that we need to grow risedle in the future.
Combining all of this, we can potentially create the most capital efficient and permissionless perp market. We envision that in the future, crypto projects don’t need to spend a fortune to get listed on CEX. They can just go to us and host their perp market. It will be only possible by working together with Tribe DAO.