With Ethereum's monumental shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS), the decentralized finance (DeFi) landscape has entered an era of unprecedented opportunities. Billions in potential value await capture by innovative protocols, and leading this charge is the concept of LSDfi. Nova Research is excited to spotlight Raft, a protocol that introduces R, a decentralized overcollateralized stablecoin backed by both collateralized debt positions (CDPs) and protocol reserves that offer a strategic saving rate of up to 10%.

Behind the strategic design of Raft.fi there is Tempus Labs, a decentralized collective of Builders, Creators, and Connectors.

At the forefront of the decentralized finance innovation lies Raft.fi, an initiative orchestrated by Tempus Labs - a formidable decentralized consortium of Builders, Creators, and Connectors. Established in 2021, Tempus embarked on a strategic mission: the formulation of superior DeFi products, achieved via organic collaboration within its expansive community. As testimony to their progress and prowess, they have already heralded the inception and launch of three distinct products: Raft, Nostra, and Fixed Income.

The project's unwavering dedication to redefining the contours of the DeFi landscape hasn't gone unnoticed. Esteemed stalwarts of the industry have endorsed and backed Raft.fi, materialized through three notable investment rounds:

• A Seed Round amassing $1.9M

• A consequential Private Round, securing $4M

• A public sale of $27.9M

This financial backing saw the amalgamation of several industry titans, including Jump Trading LLC, Tomahawk.VC, Lemniscap, GSR, and Wintermute, to name a few. The confluence of such esteemed participants further underscores Raft.fi's potential and the overarching vision of Tempus Labs.

The main product of Raft is R, a decentralized stablecoin launched on Ethereum and Base.

As of today, R has a Market Cap of approximately $10mln, while ATH has $30mln. Currently, there are three ways to obtain R:

• Create a Collateralized Debt Position* (CDP)*

• Interacting with the Peg Stability Module* (PSM)*

• Acquiring from the Secondary Market (DEX)

The Collateralized Debt Position mechanism offers users an innovative means to leverage their assets, achieve liquidity, and retain exposure to their collateral.

CDPs offer liquidity in the form of R, without needing to sell the underlying asset, allowing users to retain potential asset appreciation.

By understanding and navigating the parameters and rules associated with each asset, users can effectively engage with Raft's R stablecoin system.

Users can choose from an array of assets, each defined by specific parameters like collateralization ratio, maximum leverage, and other relevant metrics. Importantly, five types of collateral are currently supported, with four being Liquid Staked Tokens of Ethereum. Using a Liquid Staked Token as collateral comes with several benefits and factors to consider, such as exposure to Ethereum's price fluctuations and the opportunity for the asset to gain value via Staking Rewards throughout the loan period, potentially resulting in a self-repaying loan.

However, it's crucial to emphasize that to keep a CDP active, lenders must continuously monitor the Minimum Collateralization Ratio, which varies based on the chosen collateral. If the collateral's value falls below the specified threshold, the system might liquidate it to guarantee the stability of R.

The Peg Stability Module (PSM) is an advanced smart contract mechanism designed for asset swaps at a consistent exchange rate. What sets the PSM apart from conventional liquidity pools in decentralized exchanges is its unwavering exchange rate, irrespective of liquidity fluctuations.

In the context of Raft, the PSM has been architected to facilitate seamless swaps between R and DAI and auto-deposited to CHAI - the latter being a yield-enhancing wrapped token one gets upon depositing DAI in the DAI Savings Module. Through the PSM, Raft intends to sustain the price of R via a robust peg mechanism. This design ensures that any price deviation from the peg is effortlessly and advantageously corrected, leaving neither R borrowers nor holders at a disadvantage.

The PSM's real utility emerges during R price deviations from $1:

• Upward peg: Should R's price eclipse DAI's, users stand to profit by depositing 1 DAI, securing 1 R, and then selling R at a market premium. It's worth noting that, while DAI typically trades at $1, profits emerge whenever R’s price surpasses DAI.

• Downward peg: Conversely, if R's price is less than DAI's, users can deposit 1 R, obtain 0.999 DAI, and subsequently sell DAI at a premium.

As of today, there are $4MLN of CHAI in the PSM, partially backing the $10MLN or R.

For those who are looking to acquire the R token, another straightforward method exists: purchasing it directly from the secondary market. This method bypasses other mechanisms, such as the Collateralized Debt Position (CDP) and the Peg Stability Module (PSM), providing a streamlined approach especially suited for smaller transactions.

Benefits of Purchasing R on the Secondary Market:

1. No CDP Exposure: When obtaining R through a CDP, users have to provide collateral and maintain certain requirements. Buying R directly from the market eliminates this exposure, especially beneficial for those not wanting to mint a minimum of 3k R, which a CDP would necessitate.

2. No PSM Interaction: While the Peg Stability Module offers its own set of advantages, interacting with it can be a bit more complex. Purchasing R from a decentralized exchange (DEX) directly bypasses this process entirely.

3. Simplicity for Smaller Bags: For users who are looking to obtain smaller amounts of R, purchasing from a liquidity pool in a DEX is the ideal choice. This method is quick, easy, and well-suited for minimal amounts.

Where to Buy R on the Secondary Market:

The R token is available in various liquidity pools across different platforms. Some of the prominent pools where R can be traded include:

1. Gyroscope ECLP R/sDAI on Balancer

2. Curve.fi Factory USD Metapool: RAFT/FRAXBP on Curve

3. 20R-80RAFT and 50R-50wstETH on Balancer

4. R-USDC 500 1B UNI-V3 LP on Uniswap-v3

5. 50R-50wstETH on Balancer

6. R/DAI Stable on Balancer

7. R/bb-s-DAI Stable on Balancer

At the heart of RAFT's allure is its Savings Rate Module, promising a fixed 10% APY to users. However, a closer look reveals that this figure isn't just derived from user activity; it's a combination of system mechanisms and protocol incentives.

Let's break down its sources:

1. R Peg Stability Module (PSM):

   • Role: The PSM aims to maintain the stability of the R token's peg.

   • Revenue Source: Currently, the PSM utilizes CHAI, a token that represents a claim on deposits in the DSR (Dai Savings Rate) from the MakerDAO system. By doing so, it effectively guarantees an APY of 5%.

   • Flow: The yield generated from this mechanism is channeled back to benefit the RAFT ecosystem, particularly the stakers in the Savings Module.

2. Raft Collateralized Debt Position (CDP):

   • Role: The CDP system allows users to collateralize their assets to mint R tokens.

   • Revenue Source: There's an interest fee associated with each CDP. As of now, this fee accounts for an additional 3 to 3.5% APY.

   • Flow: These interest payments, collected from the borrowers, serve as a revenue stream that's directed towards the RAFT Savings Rate Module.

However, when you sum up the APY from PSM and CDP, it doesn't quite reach the promised 10%. This is where the protocol's intrinsic motivation steps in:

RAFT's Incentivization: To bridge the gap and uphold the pledged 10% APY, RAFT introduces an incentivization mechanism. This additional boost, sourced directly from RAFT, ensures that stakers receive the full 10% APY on their staked R tokens.

In essence, RAFT's Savings Rate Module's attractive APY is a product of both organic system revenues and deliberate protocol incentives, ensuring users are always rewarded for their participation and trust in the system.

Total Value Locked, often abbreviated as TVL, refers to the aggregate value of all assets that are deposited or staked in a specific protocol or platform, especially within the decentralized finance (DeFi) space. This metric is used as a primary indicator of a platform's liquidity, popularity, and trustworthiness.

Importance of TVL:

1. Trust and Adoption: A higher TVL signals that users have confidence in the platform and are comfortable depositing their assets. This level of trust is indicative of the protocol's credibility and the extent of user adoption.

2. Liquidity & Solvency: For protocols such as RAFT, maintaining liquidity is paramount. A more substantial TVL not only represents increased liquidity but, in the context of RAFT, also signifies a more significant amount of liquidity backing the supply of R.

3. Growth Indicator: By tracking the fluctuations in TVL over time, one can glean insights into a protocol's trajectory in terms of growth, appeal to users, and its standing in the broader market landscape.

The forthcoming chart offers a comprehensive visual breakdown of the Total Value Locked (TVL) in CDP from June to October. Based on the latest data, RAFT's TVL stands at approximately $14M, with $10M allocated to CDP and the residual $4M to the PSM. In terms of distribution, the CDP represents 73% of the TVL, while the PSM accounts for the remaining 27%.

Delving into the CDP's TVL, it's evident how the incorporation of new collateral types has influenced the TVL trajectory from June to October.

1. General Trend: Starting in June, we observe a consistent rise in the amount of locked ETH, reaching its zenith around late July or early August. This surge aligns with Ethereum's introduction of staking withdrawals and the prominence of LSDFi during those months. After this apex, there's a discernible drop in the total value locked, suggesting the protocol's transition into a more mature stage following the launch of its native token, RAFT.

2. Token Breakdown: The colors represent different forms of Ethereum-based tokens:

   • sETH/wstETH: Represented by the prominent pink/blue, this appears to be the leading type of ETH secured within the CDP over the observed duration. This underscores Lido's dominance as the primary provider of Liquid Staking Solutions.

   • wETH: Represented in a much smaller quantity by the teal color, it shows some variation but remains relatively low.

   • rETH and cbETH: These tokens appear in even smaller quantities and seem to have been introduced or became available around September.

3. Significant Events: Around early to mid-September, there's a sharp decline, potentially indicating a significant change due to market conditions. This decline is followed by a few sharp peaks and valleys, showcasing increased volatility or changes in user behavior during this period.

The TVL in RAFT is important in order to maintain a collateralization Ratio

Stablecoin R emerges in the vast sea of cryptocurrencies as a beacon of reliability. From its pegging mechanism to its market capitalization, R offers a unique blend of stability, growth, and trust. The subsequent paragraphs shed light on the nuances of this stablecoin's journey.

1. Pegging Mechanism: The soft peg of R to 1 USD showcases its effective liquidity and pegging strategy. While several stablecoins experience fluctuations, R's consistent peg denotes its robust design and the effectiveness of its underlying mechanisms.

2. Growing Community: The strength of Stablecoin R extends beyond its technological attributes, as evidenced by its expansive community. Over 700 holders place their trust in R, making it not just a stablecoin, but a growing community asset. Their collective belief underscores R's trustworthiness and value proposition.

3. Market Capitalization & Challenges: Stablecoin R's market cap stands at an impressive $10 million. However, the road hasn't always been smooth. On 16th October, an incident in the R savings Contract led to a deadlock of 5 million R. This event, while challenging, served as a testament to R's resilience and the community's unwavering trust.

4. TVL and Collateralization: The health of a stablecoin often lies in its TVL and collateralization ratio. With R's TVL showcasing a robust collateralization ratio of 150%, it ensures that the coin is more than sufficiently backed. This over-collateralization not only ensures stability but reaffirms the coin's standing in volatile market conditions.

R Staking Module

The provided visual gives us a comprehensive view of the R staking landscape over a period from the 1st of September to the 11th of October. Here are the key takeaways:

1. Cumulative Staking Trends: The cumulative staking plot, represented by the white line, shows a significant spike around mid-September, after which it experiences a sharp decline. This could be indicative of a major event or market sentiment change. However, after this drop, the cumulative staking remains relatively stable around the 5.2M mark.

2. Key Statistics:

   • Total R in Staking: As of 10th October, a total of 5.2M R tokens are staked.

   • Staked Ratio: 34.26% of all R tokens are staked, indicating a considerable portion of the token's holders believe in its long-term prospects.

Staking Rewards:

One of the significant incentives behind staking R is the competitive APY it offers. At a 10% fixed APY in R, it stands out as an attractive proposition for investors and token holders. When we juxtapose this with other market offerings, the advantage becomes even clearer. For instance, DAI, the prominent stablecoin from MakerDAO, currently offers an APY of 5%. This means that staking R offers double the passive yield compared to staking DAI.

The RAFT Token is the core pillar of the protocol, it was officially launched on the 11th of October, heralded by its initial airdrop wave. The essence and functionality of RAFT are Governance and Staking.

Drawing inspiration from Balancer's veBAL, veRAFT emerges as a non-transferable token, wielding the power to vote and thereby govern the operations of the Raft DAO. For those keen on acquiring veRAFT, the pathway requires providing liquidity into the RAFT/R 80:20 Balancer pool.

Staking periods

Staking RAFT LP tokens requires users to stake them for one week up to 24 months, the maximum staking duration. The longer the locking duration, the higher the voting power and the share of rewards accrued to stakers. The amount staked and the locking period can be changed throughout the program.

These token holders collectively steer the Raft DAO, a decentralized autonomous organization committed to the sustained evolution and growth of the Raft protocol. .

Rewards

The RAFT token emissions directed towards RAFT LP Stakers amount to 10% of the total RAFT supply and are evenly distributed over three years.

The chart presents a visual representation of the supply allocation of RAFT tokens, totaling 2.5 billion RAFT. The allocation is distributed among various categories, as detailed below:

1. Investors: The largest allocation, accounting for 25.91% of the total supply. This segment is represented by the magenta portion of the chart.

2. Ecosystem & Incentives: The second-largest segment, with an allocation of 21.43%, is dedicated to ecosystem growth and incentive structures. This is depicted in the light blue section.

3. Team & Advisors: Represented in teal, this segment is allotted 19.16% of the total supply, showcasing the emphasis on compensating the core team and strategic advisors.

4. Community: At 16.00%, the purple section denotes the amount of RAFT dedicated to community-related initiatives and activities.

5. Treasury: Allocated 15.00% of the total supply, the green section represents the funds set aside in the treasury for various purposes like future developments, unexpected expenses, and more.

6. CEX Market Making: The smallest allocation, with 2.50%, is reserved for market-making activities on centralized exchanges (CEX). This is depicted by the orange section.

Given that RAFT is a product under Temp's umbrella, the TEMP Staking Initiative offers TEMP token holders the opportunity to stake their assets and, in return, garner rewards in RAFT tokens.

This initiative is slated for a 2-year duration. Throughout this timeframe, a total of 102,461,565 RAFT tokens will be allocated to those staking TEMP. In terms of reward distribution, the system is designed so that every TEMP token staked over the designated 2-year span yields 1.5 RAFT tokens for the staker.

As the LSDFi Market continues its upward trajectory, RAFT Protocol positions itself as a standout competitor, equipped with unique strengths and confronting specific challenges.

Strengths:

• Powerhouse Backing: RAFT enjoys the significant support of Tempus Labs, a decentralized alliance comprising Builders, Creators, and Connectors. With nearly $10M set aside for project development, RAFT is well-poised for success.

• Strategic Funding: Successful funding rounds amounting to $5.9 million, led by industry frontrunners, bolster confidence in RAFT's mission. Such support lays a solid foundation for meaningful expansion and evolution.

• LSDFi Market Resonance: Throughout the last summer, the LSDFi market exhibited immense interest, with Ethereum unveiling billions in value ripe for capture by platforms like RAFT. The momentum is projected to persist.

• Untapped Potential: The stablecoin realm reigns supreme in the industry. With the market currently under the sway of Centralized Stablecoins like Tether, both R and the Market are primed for substantial growth. They present unique offerings for users keen on leveraging their LSTs and reaping substantial passive returns.

Weaknesses:

• Single Point of Failure: The current TVL highlights that R's collateralization predominantly comes from Lido Staked Tokens. Should Lido face issues, RAFT could experience significant setbacks. It's crucial to underscore that this mirrors a broader challenge with Ethereum's current Liquid Staking decentralization, where Lido holds dominance. Nonetheless, RAFT has showcased its adaptability by integrating with other Liquid Staking providers like Swell and RocketPool.

• Long-Term Sustainability Concerns: Current APY offerings for R Stakers are facilitated by the RAFT Team. However, there's ambiguity about the source of these funds and their duration. Greater transparency would be beneficial. With the recent launch of the Governance Token, we anticipate progressive steps in DAO Governance.

• Resource Allocation Dilemma: Relying heavily on a builders' collective is a double-edged sword. If resources are diverted to other projects endorsed by Tempus, like Nostra or Fixed Income, it could influence RAFT's trajectory.

In summing up, RAFT Protocol demonstrates a promising foothold in the burgeoning LSDFi Market, backed by influential partnerships, strategic investments, and a keen understanding of market dynamics. Its strong alignment with market trends and vast untapped potential indicates a bright future. However, like all innovative ventures, it faces inherent challenges. Its resilience will be tested by its ability to mitigate potential risks and continually adapt. As the landscape evolves, RAFT's strategic decisions, adaptability, and commitment to its vision will be instrumental in defining its long-term impact and success.

With Ethereum's monumental shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS), the decentralized finance (DeFi) landscape has entered an era of unprecedented opportunities. Billions in potential value await capture by innovative protocols, and leading this charge is the concept of LSDfi. Nova Research is excited to spotlight Raft, a protocol that introduces R, a decentralized overcollateralized stablecoin backed by both collateralized debt positions (CDPs) and protocol reserves that offer a strategic saving rate of up to 10%.

Behind the strategic design of Raft.fi there is Tempus Labs, a decentralized collective of Builders, Creators, and Connectors.

At the forefront of the decentralized finance innovation lies Raft.fi, an initiative orchestrated by Tempus Labs - a formidable decentralized consortium of Builders, Creators, and Connectors. Established in 2021, Tempus embarked on a strategic mission: the formulation of superior DeFi products, achieved via organic collaboration within its expansive community. As testimony to their progress and prowess, they have already heralded the inception and launch of three distinct products: Raft, Nostra, and Fixed Income.

The project's unwavering dedication to redefining the contours of the DeFi landscape hasn't gone unnoticed. Esteemed stalwarts of the industry have endorsed and backed Raft.fi, materialized through three notable investment rounds:

• A Seed Round amassing $1.9M

• A consequential Private Round, securing $4M

• A public sale of $27.9M

This financial backing saw the amalgamation of several industry titans, including Jump Trading LLC, Tomahawk.VC, Lemniscap, GSR, and Wintermute, to name a few. The confluence of such esteemed participants further underscores Raft.fi's potential and the overarching vision of Tempus Labs.

The main product of Raft is R, a decentralized stablecoin launched on Ethereum and Base.

As of today, R has a Market Cap of approximately $10mln, while ATH has $30mln. Currently, there are three ways to obtain R:

• Create a Collateralized Debt Position* (CDP)*

• Interacting with the Peg Stability Module* (PSM)*

• Acquiring from the Secondary Market (DEX)

The Collateralized Debt Position mechanism offers users an innovative means to leverage their assets, achieve liquidity, and retain exposure to their collateral.

CDPs offer liquidity in the form of R, without needing to sell the underlying asset, allowing users to retain potential asset appreciation.

By understanding and navigating the parameters and rules associated with each asset, users can effectively engage with Raft's R stablecoin system.

Users can choose from an array of assets, each defined by specific parameters like collateralization ratio, maximum leverage, and other relevant metrics. Importantly, five types of collateral are currently supported, with four being Liquid Staked Tokens of Ethereum. Using a Liquid Staked Token as collateral comes with several benefits and factors to consider, such as exposure to Ethereum's price fluctuations and the opportunity for the asset to gain value via Staking Rewards throughout the loan period, potentially resulting in a self-repaying loan.

However, it's crucial to emphasize that to keep a CDP active, lenders must continuously monitor the Minimum Collateralization Ratio, which varies based on the chosen collateral. If the collateral's value falls below the specified threshold, the system might liquidate it to guarantee the stability of R.

The Peg Stability Module (PSM) is an advanced smart contract mechanism designed for asset swaps at a consistent exchange rate. What sets the PSM apart from conventional liquidity pools in decentralized exchanges is its unwavering exchange rate, irrespective of liquidity fluctuations.

In the context of Raft, the PSM has been architected to facilitate seamless swaps between R and DAI and auto-deposited to CHAI - the latter being a yield-enhancing wrapped token one gets upon depositing DAI in the DAI Savings Module. Through the PSM, Raft intends to sustain the price of R via a robust peg mechanism. This design ensures that any price deviation from the peg is effortlessly and advantageously corrected, leaving neither R borrowers nor holders at a disadvantage.

The PSM's real utility emerges during R price deviations from $1:

• Upward peg: Should R's price eclipse DAI's, users stand to profit by depositing 1 DAI, securing 1 R, and then selling R at a market premium. It's worth noting that, while DAI typically trades at $1, profits emerge whenever R’s price surpasses DAI.

• Downward peg: Conversely, if R's price is less than DAI's, users can deposit 1 R, obtain 0.999 DAI, and subsequently sell DAI at a premium.

As of today, there are $4MLN of CHAI in the PSM, partially backing the $10MLN or R.

For those who are looking to acquire the R token, another straightforward method exists: purchasing it directly from the secondary market. This method bypasses other mechanisms, such as the Collateralized Debt Position (CDP) and the Peg Stability Module (PSM), providing a streamlined approach especially suited for smaller transactions.

Benefits of Purchasing R on the Secondary Market:

1. No CDP Exposure: When obtaining R through a CDP, users have to provide collateral and maintain certain requirements. Buying R directly from the market eliminates this exposure, especially beneficial for those not wanting to mint a minimum of 3k R, which a CDP would necessitate.

2. No PSM Interaction: While the Peg Stability Module offers its own set of advantages, interacting with it can be a bit more complex. Purchasing R from a decentralized exchange (DEX) directly bypasses this process entirely.

3. Simplicity for Smaller Bags: For users who are looking to obtain smaller amounts of R, purchasing from a liquidity pool in a DEX is the ideal choice. This method is quick, easy, and well-suited for minimal amounts.

Where to Buy R on the Secondary Market:

The R token is available in various liquidity pools across different platforms. Some of the prominent pools where R can be traded include:

1. Gyroscope ECLP R/sDAI on Balancer

2. Curve.fi Factory USD Metapool: RAFT/FRAXBP on Curve

3. 20R-80RAFT and 50R-50wstETH on Balancer

4. R-USDC 500 1B UNI-V3 LP on Uniswap-v3

5. 50R-50wstETH on Balancer

6. R/DAI Stable on Balancer

7. R/bb-s-DAI Stable on Balancer

At the heart of RAFT's allure is its Savings Rate Module, promising a fixed 10% APY to users. However, a closer look reveals that this figure isn't just derived from user activity; it's a combination of system mechanisms and protocol incentives.

Let's break down its sources:

1. R Peg Stability Module (PSM):

   • Role: The PSM aims to maintain the stability of the R token's peg.

   • Revenue Source: Currently, the PSM utilizes CHAI, a token that represents a claim on deposits in the DSR (Dai Savings Rate) from the MakerDAO system. By doing so, it effectively guarantees an APY of 5%.

   • Flow: The yield generated from this mechanism is channeled back to benefit the RAFT ecosystem, particularly the stakers in the Savings Module.

2. Raft Collateralized Debt Position (CDP):

   • Role: The CDP system allows users to collateralize their assets to mint R tokens.

   • Revenue Source: There's an interest fee associated with each CDP. As of now, this fee accounts for an additional 3 to 3.5% APY.

   • Flow: These interest payments, collected from the borrowers, serve as a revenue stream that's directed towards the RAFT Savings Rate Module.

However, when you sum up the APY from PSM and CDP, it doesn't quite reach the promised 10%. This is where the protocol's intrinsic motivation steps in:

RAFT's Incentivization: To bridge the gap and uphold the pledged 10% APY, RAFT introduces an incentivization mechanism. This additional boost, sourced directly from RAFT, ensures that stakers receive the full 10% APY on their staked R tokens.

In essence, RAFT's Savings Rate Module's attractive APY is a product of both organic system revenues and deliberate protocol incentives, ensuring users are always rewarded for their participation and trust in the system.

Total Value Locked, often abbreviated as TVL, refers to the aggregate value of all assets that are deposited or staked in a specific protocol or platform, especially within the decentralized finance (DeFi) space. This metric is used as a primary indicator of a platform's liquidity, popularity, and trustworthiness.

Importance of TVL:

1. Trust and Adoption: A higher TVL signals that users have confidence in the platform and are comfortable depositing their assets. This level of trust is indicative of the protocol's credibility and the extent of user adoption.

2. Liquidity & Solvency: For protocols such as RAFT, maintaining liquidity is paramount. A more substantial TVL not only represents increased liquidity but, in the context of RAFT, also signifies a more significant amount of liquidity backing the supply of R.

3. Growth Indicator: By tracking the fluctuations in TVL over time, one can glean insights into a protocol's trajectory in terms of growth, appeal to users, and its standing in the broader market landscape.

The forthcoming chart offers a comprehensive visual breakdown of the Total Value Locked (TVL) in CDP from June to October. Based on the latest data, RAFT's TVL stands at approximately $14M, with $10M allocated to CDP and the residual $4M to the PSM. In terms of distribution, the CDP represents 73% of the TVL, while the PSM accounts for the remaining 27%.

Delving into the CDP's TVL, it's evident how the incorporation of new collateral types has influenced the TVL trajectory from June to October.

1. General Trend: Starting in June, we observe a consistent rise in the amount of locked ETH, reaching its zenith around late July or early August. This surge aligns with Ethereum's introduction of staking withdrawals and the prominence of LSDFi during those months. After this apex, there's a discernible drop in the total value locked, suggesting the protocol's transition into a more mature stage following the launch of its native token, RAFT.

2. Token Breakdown: The colors represent different forms of Ethereum-based tokens:

   • sETH/wstETH: Represented by the prominent pink/blue, this appears to be the leading type of ETH secured within the CDP over the observed duration. This underscores Lido's dominance as the primary provider of Liquid Staking Solutions.

   • wETH: Represented in a much smaller quantity by the teal color, it shows some variation but remains relatively low.

   • rETH and cbETH: These tokens appear in even smaller quantities and seem to have been introduced or became available around September.

3. Significant Events: Around early to mid-September, there's a sharp decline, potentially indicating a significant change due to market conditions. This decline is followed by a few sharp peaks and valleys, showcasing increased volatility or changes in user behavior during this period.

The TVL in RAFT is important in order to maintain a collateralization Ratio

Stablecoin R emerges in the vast sea of cryptocurrencies as a beacon of reliability. From its pegging mechanism to its market capitalization, R offers a unique blend of stability, growth, and trust. The subsequent paragraphs shed light on the nuances of this stablecoin's journey.

1. Pegging Mechanism: The soft peg of R to 1 USD showcases its effective liquidity and pegging strategy. While several stablecoins experience fluctuations, R's consistent peg denotes its robust design and the effectiveness of its underlying mechanisms.

2. Growing Community: The strength of Stablecoin R extends beyond its technological attributes, as evidenced by its expansive community. Over 700 holders place their trust in R, making it not just a stablecoin, but a growing community asset. Their collective belief underscores R's trustworthiness and value proposition.

3. Market Capitalization & Challenges: Stablecoin R's market cap stands at an impressive $10 million. However, the road hasn't always been smooth. On 16th October, an incident in the R savings Contract led to a deadlock of 5 million R. This event, while challenging, served as a testament to R's resilience and the community's unwavering trust.

4. TVL and Collateralization: The health of a stablecoin often lies in its TVL and collateralization ratio. With R's TVL showcasing a robust collateralization ratio of 150%, it ensures that the coin is more than sufficiently backed. This over-collateralization not only ensures stability but reaffirms the coin's standing in volatile market conditions.

R Staking Module

The provided visual gives us a comprehensive view of the R staking landscape over a period from the 1st of September to the 11th of October. Here are the key takeaways:

1. Cumulative Staking Trends: The cumulative staking plot, represented by the white line, shows a significant spike around mid-September, after which it experiences a sharp decline. This could be indicative of a major event or market sentiment change. However, after this drop, the cumulative staking remains relatively stable around the 5.2M mark.

2. Key Statistics:

   • Total R in Staking: As of 10th October, a total of 5.2M R tokens are staked.

   • Staked Ratio: 34.26% of all R tokens are staked, indicating a considerable portion of the token's holders believe in its long-term prospects.

Staking Rewards:

One of the significant incentives behind staking R is the competitive APY it offers. At a 10% fixed APY in R, it stands out as an attractive proposition for investors and token holders. When we juxtapose this with other market offerings, the advantage becomes even clearer. For instance, DAI, the prominent stablecoin from MakerDAO, currently offers an APY of 5%. This means that staking R offers double the passive yield compared to staking DAI.

The RAFT Token is the core pillar of the protocol, it was officially launched on the 11th of October, heralded by its initial airdrop wave. The essence and functionality of RAFT are Governance and Staking.

Drawing inspiration from Balancer's veBAL, veRAFT emerges as a non-transferable token, wielding the power to vote and thereby govern the operations of the Raft DAO. For those keen on acquiring veRAFT, the pathway requires providing liquidity into the RAFT/R 80:20 Balancer pool.

Staking periods

Staking RAFT LP tokens requires users to stake them for one week up to 24 months, the maximum staking duration. The longer the locking duration, the higher the voting power and the share of rewards accrued to stakers. The amount staked and the locking period can be changed throughout the program.

These token holders collectively steer the Raft DAO, a decentralized autonomous organization committed to the sustained evolution and growth of the Raft protocol. .

Rewards

The RAFT token emissions directed towards RAFT LP Stakers amount to 10% of the total RAFT supply and are evenly distributed over three years.

The chart presents a visual representation of the supply allocation of RAFT tokens, totaling 2.5 billion RAFT. The allocation is distributed among various categories, as detailed below:

1. Investors: The largest allocation, accounting for 25.91% of the total supply. This segment is represented by the magenta portion of the chart.

2. Ecosystem & Incentives: The second-largest segment, with an allocation of 21.43%, is dedicated to ecosystem growth and incentive structures. This is depicted in the light blue section.

3. Team & Advisors: Represented in teal, this segment is allotted 19.16% of the total supply, showcasing the emphasis on compensating the core team and strategic advisors.

4. Community: At 16.00%, the purple section denotes the amount of RAFT dedicated to community-related initiatives and activities.

5. Treasury: Allocated 15.00% of the total supply, the green section represents the funds set aside in the treasury for various purposes like future developments, unexpected expenses, and more.

6. CEX Market Making: The smallest allocation, with 2.50%, is reserved for market-making activities on centralized exchanges (CEX). This is depicted by the orange section.

Given that RAFT is a product under Temp's umbrella, the TEMP Staking Initiative offers TEMP token holders the opportunity to stake their assets and, in return, garner rewards in RAFT tokens.

This initiative is slated for a 2-year duration. Throughout this timeframe, a total of 102,461,565 RAFT tokens will be allocated to those staking TEMP. In terms of reward distribution, the system is designed so that every TEMP token staked over the designated 2-year span yields 1.5 RAFT tokens for the staker.

As the LSDFi Market continues its upward trajectory, RAFT Protocol positions itself as a standout competitor, equipped with unique strengths and confronting specific challenges.

Strengths:

• Powerhouse Backing: RAFT enjoys the significant support of Tempus Labs, a decentralized alliance comprising Builders, Creators, and Connectors. With nearly $10M set aside for project development, RAFT is well-poised for success.

• Strategic Funding: Successful funding rounds amounting to $5.9 million, led by industry frontrunners, bolster confidence in RAFT's mission. Such support lays a solid foundation for meaningful expansion and evolution.

• LSDFi Market Resonance: Throughout the last summer, the LSDFi market exhibited immense interest, with Ethereum unveiling billions in value ripe for capture by platforms like RAFT. The momentum is projected to persist.

• Untapped Potential: The stablecoin realm reigns supreme in the industry. With the market currently under the sway of Centralized Stablecoins like Tether, both R and the Market are primed for substantial growth. They present unique offerings for users keen on leveraging their LSTs and reaping substantial passive returns.

Weaknesses:

• Single Point of Failure: The current TVL highlights that R's collateralization predominantly comes from Lido Staked Tokens. Should Lido face issues, RAFT could experience significant setbacks. It's crucial to underscore that this mirrors a broader challenge with Ethereum's current Liquid Staking decentralization, where Lido holds dominance. Nonetheless, RAFT has showcased its adaptability by integrating with other Liquid Staking providers like Swell and RocketPool.

• Long-Term Sustainability Concerns: Current APY offerings for R Stakers are facilitated by the RAFT Team. However, there's ambiguity about the source of these funds and their duration. Greater transparency would be beneficial. With the recent launch of the Governance Token, we anticipate progressive steps in DAO Governance.

• Resource Allocation Dilemma: Relying heavily on a builders' collective is a double-edged sword. If resources are diverted to other projects endorsed by Tempus, like Nostra or Fixed Income, it could influence RAFT's trajectory.

In summing up, RAFT Protocol demonstrates a promising foothold in the burgeoning LSDFi Market, backed by influential partnerships, strategic investments, and a keen understanding of market dynamics. Its strong alignment with market trends and vast untapped potential indicates a bright future. However, like all innovative ventures, it faces inherent challenges. Its resilience will be tested by its ability to mitigate potential risks and continually adapt. As the landscape evolves, RAFT's strategic decisions, adaptability, and commitment to its vision will be instrumental in defining its long-term impact and success.