Jai Bhavnani was in the shower when he came up with the idea of starting a cryptocurrency investment company. He wanted people to be able to increase their wealth, so with a vision in mind for a start-up, he was inspired to create Rari Capital.
Rari Capital is a start-up that allows users to lend their cryptocurrencies to the company and then receive the highest return on their assets without having to go to a bank. Co-founded by Iovine and Young Academy freshman Bhavnani, UW-Madison sophomore Jack Lipstone and UT Austin sophomore David Lucid, the idea for the company was first developed at the end of May 2020 and launched in July 2020.
In simple financial terms, a cryptocurrency is a currency on a blockchain. It is a type of digital currency that users can use an online platform like the Coinbase app to turn their USD into USDC (digital dollars) and deposit them to start earning income. It is like lending money to a bank and earning interest on it.
“Basically, the way you differentiate a cryptocurrency from a non-cryptocurrency is whether it lives on top of a blockchain,” Bhavani said.
Prior to Rari Capital, Bhavnani and Lipstone developed a mobile cryptocurrency wallet called Ambo. Once Ambo was acquired by MyCrypto, another crypto portfolio management company that the two founders worked for in 2019, they had a large amount of cryptocurrencies based on the US dollar.
Bhavnani wanted to make more money from his cryptos, so he manually loaned it to financial platforms like Dydx and Compound Finance. Finally, he wanted to speed up this process so that he could generate more cryptos.
To deposit in Rari Capital, users need to connect a crypto mobile wallet (MetaMask, WalletConnect, Portis, Torus, Formatic or Authereum) to access the Rari Capital app landing page. They then choose one of three pools (Rari ETH Pool Token, Rari Stable Pool Token, or Rari Yield Pool Token) to deposit their cryptos into. As users deposit their money into Rari pools, their money will go to providers. Rari takes 17.5% of everything they do from their users as a performance fee, Bhavnani said.
As Rari Capital enters the economic world with nearly 10,000 token holders, they are constantly updating what their business has to offer.
In July, the first version launched and users deposited a maximum of $ 350. One hundred and seventy users deposited and added the fund up to $ 60,000. Since the first version worked, Rari Capital was something the co-founders wanted to keep building, Bhavnani said.
The second version was then released last October, when the co-founders decided to create their own cryptocurrency.
“The cryptocurrency that we’re going to create is going to control the whole network that we build, all of this fund that we build,” Bhavnani said. “Along with that, we started giving our cryptocurrency to whoever is deposited into the fund … everyone wanted to deposit into the fund because they wanted some of our cryptocurrency … within 72 hours after the release of version two, we had $ 95 million under management. ”
Currently, the Rari Capital team consists of eight members: the three co-founders, a user experience designer, a front-end developer, a community outreach employee and two smart contract developers. The majority of the workers attended the same high school as Bhavnani and Lipstone.
Since the start-up was founded when everything went online, Rari Capital has never existed in a non-Zoom world, so many workers haven’t met, Bhavnani said.
Justin Yu, a high school student and the company’s first hire, said working for Rari Capital was a blessing. The experience of working for an online startup allows them to try out a wide range of roles such as user interface, user experience design, operations design and marketing, he said. declared.
“We had about three sleepless nights where we crammed together to work on something for an important deadline,” Yu said.
The team communicates through Slack, and Lipstone said the co-founders are constantly calling and texting each other.
“It’s kind of like a family, that’s what I would call it,” Lipstone said.
The company started with an idea that has grown over the past eight months. Rari Capital’s next steps include the development of a product called Fuse. Fuse will allow users to create their own money market, which would allow people to lend and borrow assets at their discretion, Lipstone said.
“I’ve been efficient since the company has been around… We had nothing… There was a bit of a stall trying to gain traction, trying to get our name out there,” Yu said. “Now there are all kinds of things. ” influencers and bigger personalities and [people on] Twitter which has thousands and thousands of followers tweeting about us, asking for personal introductions and more information, and I think it certainly makes it a much more rewarding experience to have seen her from zero to 100 . “