[RPC-XX] Rari treasury yield agent

Proposals Parent DAO Proposals
#1

Abstract

Axal proposes a strategic integration between its Autopilot yield agents and the RARI Foundation ecosystem. Through Autopilot, the Rari Foundation would be able to create a custom DeFi agent and put a portion of its treasury to work and earn recurring revenue through yield harvesting.

What Axal proposes:

  1. To put $RARI as one of its featured tokens on the platform

  2. Axal also proposes a unique NFT for early adopters to pay 0 fees while trading. This NFT can be exclusive to Rarible.

  3. The Rari Foundation places $50,000 of its treasury in a non-custodial yield agent earning 6-10% to begin; that yield can be transferred to an external wallet for recurring revenue on a monthly basis or compounded.

  4. This is totally non custodial, and the trading strategies would be preapproved based on Rari’s interests.

  5. The lockup period would be between 6-12 months.

The goal is to deploy a dynamic, risk-adjusted yield strategy across DeFi lending pools. The AI agent actively monitors pool health via metrics such as TVL, TVL volatility, and depegging risk. Based on real-time analytics, Autopilot reallocates capital to safer pools when risks escalate.

Who is Axal

Axal (ax.al, x.com/getaxal) is creating a network of verifiable agents, fulfilling general tasks via intent marketplaces.

Harvard, AWS, SIG trained team, raised $2.5M from a16z CSX, CMT Digital, Escape Velocity, and other top investors

Their first applications, ax.al/autopilot and x.com/gekko_agent, leverage the Axal network to intelligently automate web3 investing. Current partnerships include Coinbase CDP, Movement Labs, Privy, and Virtuals Protocol.

Motivation

For the Rari Foundation, Axal Autopilot provides:

  • A chance to brand Rari in the AI/Agents/DeFi space alongside Axal
  • Passive yield stream for the Foundation
  • Enhanced capital safety (yield is diversified and health is monitored)
  • Intelligent liquidity allocation

This proposal represents a long-term value-add to the Rari ecosystem, increasing protocol stickiness, user trust, and treasury diversification/revenue generation.

For Axal, the motivation is to integrate our product with as many Tier 1 foundations as possible/build a relationship with a Tier 1 NFT marketplace.

Rationale

This partnership aligns with Rari Foundation’s commitment to decentralization and sustainability. The monthly harvesting of yield into a foundation wallet creates recurring revenue that allows for sustainable operations. It is all done in a non-custodial manner.

In this partnership, Axal also features $RARI in its flagship index feature and agrees to use Rarible as its exclusive marketplace when launching its NFT program.

Key Terms

TVL – Total Value Locked; a measure of the liquidity in a protocol.
Depegging Risk – The risk that a token loses its pegged value, commonly applied to stablecoins.
Yield Harvesting – Periodic claiming and redirection of earned yield while preserving principal.
AI Agent – An autonomous software that can make decisions based on real-time data.
Autopilot – Axal’s platform for AI-powered yield management agents.

Specifications

Yield Strategy: The Rari Foundation selects its yield strategy (risk/APY target, preferred lending pools and protocols), and yield harvesting schedule.

Yield Harvesting: A cron-based scheduler triggers monthly yield claims, sending earnings to a designated Rari Foundation wallet.

Infrastructure:

  • Chain support: Initially Arbitrum, Base, Hyperliquid, and Solana
  • Protocols: Aave, Morpho, Pendle, Kittenswap, Kamino, and Meteora
  • Alchemy smart wallets for agent delegated actions

Revenue Model: Rari receives 100% of net yield (excluding gas and fees), can withdraw in full after 6 months.

Content Strategy:

We will do a big co-marketing push highlighting Rari and its integration with Autopilot:

Promotion:

We can leverage our connections in the media, including friends at Blockworks and Cointelegraph, to potentially talk about the partnership.

We can continually do content around the partnership highlighting how agents can play a big role in the future of the Rari Foundation.

Steps to Implement

  1. Agent Architecture Finalization – Axal team to lock in thresholds and supported protocols (Week 1)
  2. Delegated Execution Setup – Integrate with Privy for secure off-chain intent delegation (Week 2)
  3. Foundation Wallet Integration – Connect yield payout to Rari-controlled multisig (Week 3)
  4. Launch – Production deployment of AI agent (Week 4)

Timeline

Provide a clear timeline for the project, including start and end dates, milestones, and expected completion dates for each phase.

Example:

  • Month 1: Rari deposits $50,000 into Autopilot Yield. Large marketing push around collaboration
  • Month 2: Axal designs and pushes out NFT’s exclusive to Rarible
  • Month 3: Axal interviews members from Rari team for Axal’s flagship DeFi podcast, Talking Intentionally (former guests include CEO of Tether, Near, and Across)
  • Month 4: We run 2 Twitter spaces with the Rari team talking through ideas of how agents can be impactful in DeFi.
  • Month 5: Rari and Axal continue co-marketing push about Agents x Rari
  • Month 6: Rari can withdraw funds if needed/we reevaluate partnership

Overall Cost

  • Total: $50,000 deposit from the Rari Foundation into a non custodial Yield agent on Autopilot. Deposit will earn 6-10% yield, and can be withdrawn after 6 months. Can discuss deeper integration later on if community favors it.
6 Likes
RARI DAO Highlights - May 5-11, 2025
#2

Great proposal @ari, and welcome to RARI DAO.

Really appreciate the focus on actual treasury deployment rather than adding another layer of management. Having a non-custodial, yield-generating setup that puts the treasury to work immediately; without new salaries, implementation fees, or governance overhead, is exactly the kind of efficiency we should prioritize.

The ability to benefit from treasury yield right away, along with additional exposure through Axal’s media partners, makes this a low-risk, high-upside opportunity.

I fully support exploring automation and smart deployment tools like this to make the DAO’s assets work harder for the community.

2 Likes
#3

I explored the use of automated tools when putting together the treasury management proposal. The conclusion I came to in discussion with many other partners (including some of the providers of these automated tools) was that it is not suitable for the needs of the DAO at this point in time and we’d be in a better position after a year or so of rebalancing the treasury under expert guidance.

I agree this is the optimal end point but in my opinion the state of the treasury is such that this is not feasible without delicate management for a period of time prior to exploring this.

Can you provide more details on the strategies you propose and how you would earn 6-10% yield on a RARI only treasury?

You also state that foundation would collect yield and manage the position. Can you clarify if you propose for this to be a transfer from DAO treasury to foundation or if the DAO will accrue the yield? If the intent is for the foundation to manage this and accrue yield, are they legally allowed to do so? If not the foundation, who will manage the positions?

Finally, do you guys have any docs and are you audited? I’d be interested to see the technical specifics.

5 Likes
#4

Huge fans of Rarible and Rari on the whole.

Excited to build out the future with ya’ll!

Kozy from the Axal team

2 Likes
#5

Hey everyone great to be here, this is Ash founder of Axal - happy to answer any questions!

can play around with an initial consumer-facing UI of the yield agent here.

2 Likes
#6

Thank you @ari for your proposal.

First, we don’t think this proposal is exclusive or competing with the creation of a Treasury Committee as @jarisjames has hinted. Mainly because automated yield will not solve $RARI liquidity nor Treasury diversification, the main goals of the Treasury Committee.

We think AI Agents will eventually take over automated yield generation and are happy to see the axal team interested in collaborating with Rari DAO. However, when deploying Treasury funds into non-custodial automated protocols, we have two concerns:

  • Execution: How are strategies going to obtain 6-10% yield on $RARI without selling it? If these strategies rely on selling RARI tokens and then obtaining yield on non-RARI assets, then we go back to the same Rari liquidity/Treasury diversification struggles mentioned before, which we think can be better approached by a professional team rather than an untested automated algorithm.

  • Risks: Autopilot involves complex automated onchain actions and supports multiple DeFi protocols for yield generation. Are there audits available for the current implementation? How can the DAO assess which automated strategies are better suited for the DAO without a dedicated Treasury Manager expert, risk advisor?

5 Likes
#7

Sounds like a great proposal, 6-10% yield and more exposure for our token.

I do recommend to take these funds from the Treasury Diversification Wallet, and not from our main treasury wallet.

3 Likes
#8

@Jose_StableLab, I’m not suggesting we replace treasury oversight or stop exploring structured approaches. Just pointing out that if a tool exists that’s non-custodial, doesn’t require salaries paid out by the DAO, and keeps treasury control intact, it’s worth considering, at least in a testnet environment first before full implementation.

Encouraging some experimentation alongside traditional models could create more options for the DAO’s long-term success. If every solution needs to be pre-approved, pre-managed, and tied to new roles funded by the DAO, it risks sending the message that bureaucracy takes precedence over progress. This isn’t about adopting anything without due diligence; it’s about being open to trying new approaches before dismissing them.

5 Likes
#9

Very interesting. Still forming my opinion on this one.

Same as others, I’d like a bit more clarity on the strategies you’re proposing to hit that 6–10%.

Also, are you currently working with other projects around Rari’s size? If so, can you share some numbers on how things are going with them?

3 Likes
#10

Good to hear your thoughts!

1 Like
#11

Hey @Jose_StableLab great points! My thoughts below:

  • I do believe automated yield is the best way to resolve Treasury Diversification. Manual diversification has significant delays, misses out on opportunity (or protection strategies), and is generally a blackbox giving DAO members less transparency. Autopilot offers a complete audit trail from a single self-custodial address that anyone can view.
  • Execution: happy to explore RARI focused strategies, but there are minimal venues to earn on RARI itself. I believe automating granular sells and buybacks catered to DAO needs, and investing in the most risk-free rate imaginable in web3 (stablecoin yield via bluechip DeFi protocols like Aave and Morpho), is the way to go. I frankly can’t see how a “professional team” does better than a clearly defined and flexible automated strategy, especially for treasury management (I somewhat agree with you for far riskier individual investment strategies, but there’s little “edge” so called professionals have for low yield strategies). Including a screenshot of an example Autopilot dashboard below - totally transaprent and intuitive, and getting you market leading rates on an extremely conservative USDC portfolio (Aave and Morpho Base pools). Manual management necessitates not only picking a strategy but trusting a team to cash out of reward tokens, reallocate as market rates change, etc.
  • Risks: Audited by leading DeFi security firms (Fuzzland). The architecture itself is fully non-custodial, meaning at any point the DAO can manually intervene or pull funds out (even if our frontend dashboards go down). As far as determining ideal strategies, I believe its best to start with the simplest and most battle-tested with conservative yield (info is provided clearly on the Autopilot dashboard site), and then explore more sophisticated investments via the forum. As different members find new strategies and risk preferences change, Autopilot can easily adapt (literally one click/endpoint call).

Screenshot 2025-04-29 at 12.39.07 PM
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1 Like
#12

Thanks all for the thoughtful feedback.

To clarify: this proposal costs nothing beyond the $50K deposit—which stays fully under Rari’s control, earns 6–10% yield immediately, and can be withdrawn after 6 months. No salaries, no overhead, no governance burden.

The safest strategy is diversified into stablecoins across Aave and Morpho to start (coming from the Treasury Diversification Wallet like @forexus mentioned), but we can explore version where yield is earned via the Rari chain itself.

Autopilot has been audited by top DeFi firms (https://x.com/fuzzland_ and https://x.com/shoucccc) - the biggest risks are from the protocols, pools, or stablecoins themselves but we’re only relying on the most battle tested while monitoring for TVL volatility and depeg risk.

2 Likes
#13

Thanks @ari for your proposal. We’re currently having a discussion around treasury management, so this is good timing.

  • I’m a bit sceptical as well about an automated strategy at the current state (as @cr1st0f is mentioning), the risks associated (as @Jose_StableLab pointed out) and locking the token for min. 6 months.

  • Given the suggested 50k and there’s no additional budget needed, it could be a good test run, though. I also like the suggestion of the marketing efforts around the partnership. How do you earn from the protocol, are the fees deducted from rewards?

Generally, I think we should endorse a whole treasury management strategy, instead of fractionalized programs, maybe we should get a better overview there first.

4 Likes
#14

Thanks for the comment @bitblondy! Some notes/comments:

  • Flexible on the 6-month lockup. I thought some lockup period would be good to see results.

  • I think @ashketchup had some good comments to address safety as well as the previous post so no need to reiteriate.

  • The manual vs. automated argument is interesting. IMO - funds that are critical to DAO operations shouldn’t be managed in a manual, black-box way. The strategy should match the goals (assuming steady, stable appreciation) in a way that’s transparent and emotionless.

  • We have not turned on fees yet and happy to keep it that way for Rari during the trial run. But idea is a small % of profit only.

2 Likes
#15

I like the idea of experimenting with tooling like this. However, given that there’s no clear recipe to hit the proposed 6%–10% and it’ll take time to fine-tune and find the sweet spot, I wouldn’t support a $50K experiment right now.

I believe an experiment like this could start with 1/10th of the proposed budget, but I also agree with @bitblondy - I don’t think this is the right moment to start fractionalizing programs related to treasury management and diversification.

3 Likes
#16

Thank you @ari for the proposal.

@ashketchup, from what I understand, the $RARI we lock up will automatically get swapped to stables to achieve the target 6 - 10% yield via AAVE and Morpho USDC vaults, correct?

#17

We actually just started working with Stellar to help automate roughly the same size.

They just onboarded today!

#18

Thanks @ari for the clarifications. Given the comparatively small amount, a lock-up should be fine. In case of a larger share of the treasury, I wouldn’t recommend that.
No fees during the trial run is a very fair offer as well.

@cr1st0f Is the yield agent something, that you could incorporate in the strategy of the (currently proposed) treasury committee? I guess it would make sense, if that’s under the same hood.