R A C K

Connecting peers

Borderless Bridge to Decentralized Finance

Autonomous Banking based on blockchain Financial Protocols.

Connect to Decenralized Finance

Borrow

Borrow directly without waiting for a counterparty or peer anywhere from the world.

Lend

Deposit cryptos to continuously earn variable algorithmic interest over time.

Leverage

Increase the exposure by effectively trading on margin with borrowed capital.

Swap

Instantly swap tokens in a fast, simple and secure way directly from your wallets.

Manage and Track Your DeFi Stack.

Keep track and manage your blockchain based assets and analyze your financial position anywhere in the world in a complete non-custodial manner.

Compound protocol establishes money markets, which are pools of assets with algorithmically derived interest rates, based on the supply and demand for the asset. Suppliers and borrowers of an asset interact directly with the protocol, earning and paying a floating interest rate, without having to negotiate terms such as maturity, interest rate, or collateral with a peer or counterparty.

CDP stands for “collateralized debt position.” In the MakerDAO system, users can create CDPs and lock ether into them as collateral. Doing this permits users to generate Dai up to 2/3 of the value of the locked ether. The generated Dai serves as debt, and CDP owners can do anything they want with it. The collateral remains locked in MakerDAO’s smart contracts until the CDP owner repays the debt (or liquidation occurs).

Uniswap protocol provides an interface for seamless exchange of ERC20 tokens on Ethereum. By eliminating unnecessary forms of rent extraction and middlemen it allows faster, more efficient exchange. Where it makes tradeoffs, decentralization, censorship resistance, and security are prioritized.

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Frequently Asked Questions

Earning Interest on Rack

We have decided to launch with only USD Coin and Dai because these are the only dollar-denominated assets that are currently supported by the Compound protocol. We may consider adding additional assets in the future, including cryptocurrencies like Ether and Bitcoin, as well as additional dollar-denominated assets like Tether (USDT). If you have a strong opinion about what assets we should support, send us a note at [email protected] or come chat with us in our Discord community.

All interest in Rack is generated by borrowers who use the Compound protocol. Borrowers post cryptocurrency as collateral in order to borrow, and are required to post more value as collateral than they are allowed to borrow. This over-collateralization mitigates the risks to lenders, because even if borrowers never make a repayment their collateral can be sold to repay the depositors.

Borrowers use Compound for many reasons, but some of the common reasons are:

  • To get leverage to speculate on cryptocurrency price fluctuations
  • To make large personal purchases using the gains on cryptocurrencies that have appreciated in value, without having to sell the crypto

Interest rates are a function of asset utilization in the Compound protocol. When an asset is highly utilized, it will have a high interest rate. When its utilization rate is low, it will have a low interest rate.

Utilization can change based on changes to either supply or demand of an asset — utilization increases when either more borrowers borrow from Compound or when depositors withdraw money from Compound, and decreases when either depositors deposit money into Compound or when borrowers make repayments.

Interest rates are determined by the Compound protocol and can fluctuate as frequently as every 15 seconds.

Rack does not provide tax advice. Please consult with a tax advisor regarding your reporting obligation.

The primary risks associated with using Rack are:

Borrowers use Compound for many reasons, but some of the common reasons are:

  • Technical risk — you are using experimental software built by two companies, Rack and Compound. While this software has been extensively tested, it is still relatively new and could have bugs or security vulnerabilities.
  • Borrower Default risk — when you save on Rack, you are funding a liquidity pool from which users can borrow. In order to borrow from the liquidity pool, borrowers must post collateral, the value of which is greater than the value they are borrowing (i.e. borrowers are “over-collateralized”). Nevertheless, if the value of the collateral that borrowers have posted rapidly falls, there may be insufficient collateral value left over to repay the loans these borrowers have taken, and you may lose some or all of your investment.
  • Interest Rate risk — interest rates on Compound are variable, meaning they can fluctuate even after you have deposited money or taken out a loan. This means that as a depositor you may earn less than the interest rate you saw at the time you deposited, or that as a borrower you will be responsible for paying a much higher interest rate than you saw when you first borrowed money. Rack is not responsible for these interest rate fluctuations, which are based on a preset formula that managed by the Compound protocol team.

Rack can receive funds from any Ethereum address — including centralized exchanges like Coinbase or Binance (keep in mind that these services may charge you a withdrawal fee). Rack can send funds to any Ethereum address, but when withdrawing funds from Rack, make sure that you use a wallet that supports the asset that you are withdrawing.

Yes, there is a $0.01 minimum for both deposits and withdrawals.

Rack Basics

Rack is the easiest way to save money from anywhere in the world. You can create a Rack Account in minutes, deposit and withdraw digital dollars (USD Coin and Dai) anytime, day or night, and earn interest instantly. From Argentina to Zimbabwe, we make it easy for you to save your dollars and earn a high rate of return, instantly.

Head on over to https://www.rack.com/ to create your account and get started. All it takes is a Coinbase account and an internet connection.

All you need to use Rack is a fully verified Coinbase Account and an internet connection.

Rack is available anywhere in the world, as long as you have a verified Coinbase account and an internet connection. If Coinbase doesn’t support USD Coin and/or Dai in your country and you want help getting those assets, feel free to reach out to us at [email protected] or join us in our Discord chat where we’re happy to help!

Rack uses Coinbase’s OAuth2 flow (Coinbase Connect) for KYC and security purposes. Our Coinbase integration has read-only access to your Coinbase data, and your personal information (e.g., public profile, email address, account purchase limits, and account balances) is collected for compliance monitoring only. We cannot move funds or make trades on your behalf.

If you are having trouble accessing or creating your Rack account, please reach out to [email protected] specific details. If you want to chat with us in real time, join us in our Discord chat where we are more than happy to help!

Rack currently doesn’t charge any fees, but we may do so in the future. These fees may be based on transaction activity, a small percent of the interest generated through our platform, or fees on additional services that we plan to offer in the future. We have been fortunate enough to raise capital from a team of investors that are enthusiastic about our vision for the future of decentralized finance, and this investment funds our current operation.

It’s worth noting that Rack’s technical architecture, specifically the Smart Wallet, is designed such that even if Rack the company were to disappear, depositors would not lose access to their funds.

You can always reach out to [email protected] if you are having trouble accessing or creating your Rack account, want to give us feedback, or even just want to say hi. If you want to chat with us in real time, join us in our Discord chat!

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