[RARE] - Collateral Onboarding Application MIP6

1. Who is the interested party for this collateral application?

2. Provide a brief high-level overview of the project, with a focus on applying collateral token.

SuperRare is a primary marketplace for high end one of one cryptoart. $88M+ in artwork has been sold on SuperRare this year and the platform has generated $11M+ in fees. On August 17th the RARE token was airdropped to the artists and collectors who contributed to the platform since the beginnning. SuperRare platform fees now go to the DAO treasury and RARE holders govern the platform. Incentives are aligned between team, investors, and the community.

3. Provide a brief history of the project.

SuperRare was founded by John Crain, Charlie Crain, and Jonathan Perkins in 2018. The team pioneered cryptoart and the first mint on SuperRare was Robbie Barrat’s AI Generated Nude Portrait #1 on April 5th, 2018. Since then the team has built the SuperRare brand as the leading brand in cryptoart and helped launch hundreds of massively successful artists including Xcopy, Hackatao and Pak.

4. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

5. Link any available audits of the project. Both procedural and smart contract focused audits.


6. Link to any active communities relating to your project.

7. How is the applying collateral type currently used?

RARE is a governance and curation token used to govern the SuperRare platform.

8. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

The RareDAO Foundation currently bears legal responsibility for RARE and is a Cayman based non-profit.

9. Where does exchange for the asset occur?

Decentralized exchanges such as Uniswap v2 and v3.

10. (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.


11. (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.


12. (Optional) List any possible oracle data sources for the proposed Collateral type.


13. (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.



Is this the etherscan address of RARE token?


Or perhaps I should ask the question I am trying to answer.

What is the entire Market Cap of the RARE token?

MC: $147M
FDV: $1.1B

But of course, FDV is just a meme :slight_smile:

where did you get this - on coingecko? I am trying to answer a question of even if we do all the work making a vault here how much DAI will this mint. Like RARE has to participate in governance, and is used to do what else. How much of this market can we have any hope of expecting to make it into a vault.

Example: BAT has like MC of 1.155B and we have only 10.4M locked BAT (1%) minting 1.4M DAI paying 4%. This vault earns Maker a whopping 56K DAI a year. Does this even pay for all the costs involved in adding it.?

If RARE even gets to 1% of MC locked minting DAI will the revenues generated be worth the effort?

We have RWA looking to get on-line here ready to mint 10’s of Millions of DAI. Should we even be bothering to consider MIP6 applications that can’t justify 10M DAI minted or more?

BTW: At current 6B the idea we get to 10B via MIP6 applications even doing 10M is so out of whack as almost to be funny. Maker has limited resources, the DAO really needs to focus these limited resources to actually get to the bigger fruit not at picking up scraps. I like RARE and a lot of other DAO communities btw but if they are coming to the table here I want to see 100M or above as realistic DAI minting to devote time to bringing forward.

I don’t want this to be a slight on any other community but really just a statement of a practical view of Maker and really MakerDAO practicalities at this point.

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Indeed–Coingecko. And you’re right–RARE is use for DAO Governance–for now.

I agree–this might be another BAT–we’ll see what Risk, Oracles, etc., report back.
IMO we should focus more on ETH, RWAs, and the top 3 Uniswap LP tokens (winding down the USDC risk gradually)

I think there’s an opportunity here for the Growth team to use a deeper integration of Dai on SuperRare to help MakerDAO prioritize the application.

Delegates - what level of priority would you advocate for this application if SuperRare allowed Dai transactions on the platform and made it their exclusive stablecoin?


Not really familiar with the platform, but I think any ecosystem that is willing to denominate prices in DAI rather than ETH or USD deserves special consideration.


I don’t think we should force pricing in Dai, for the record. Just offer it as an alternative to ETH and make sure Dai has preference above other stablecoins (whether through exclusivity or another means).

Nice scenario. I like it. No-brainer–high priority, IMO.
I’ve seen USDC have a ton of success on the NFT latent FLOW blockchain.

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I’m not a recognized delegate, but my opinion is that NFTs are a ridiculous idea. I’m not in favor of investing resources to support NFTs because I foresee them becoming worthless in the future.


Personally—I’m more of a fanatic of Decentralized Finance—although I do hold some NFTs—but I do see that there is a sentiment brewing by the Ethereum community—where some agree with you, and others believe NFTs are a good way to grow the network. A good example of this:

I guess time will tell. IMO, I think it’s 2-1 odds NFTs are a “big deal” 10 years from now.

I didn’t mean to exclude non-delegate community members, that was a poor choice of words on my part!

I would encourage you to consider that regardless of whether NFTs have “value,” there’s clearly some value in the platforms that facilitate their trading. You may not want to buy beanie babies, but you probably wanted to own Ty stock in the late 90s. Fads come and go, but marketplaces have been historically good investments, and it’s my understanding that RARE provides fees from the marketplace transactions. Personally I think that Dai being used in high volume transactions, regardless of what those transactions are for, is a win. But I respect your opinion to the contrary.

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That’s not me. I was an early investor in DeFI and continue to love it.

Yeah, I acknowledge that, but I’d prioritize other things first. If we find that we have ample resources to onboard meme tokens and NFTs then why not, I guess? At worst, we can make money on liquidation penalties. However, I don’t see these as long-term investments. “I think it’s 2-1 odds NFTs are a “big deal” 10 years from now.” OK, but 20 years?


I am adding my two dai here.

RARE tokens are similar to MKR in that holders set certain parameters on the RARE platform, which is the NFT/digital art equivalent to the Guggenheim, Centre Pompidou or the MOT in Tokyo. I’m not sure what is being planned or discussed for the token’s future functionality, but it can and should begin to earn fees drawn from primary and secondary art sales on the platform. For holders, it starts to look like an equity share in Sotheby’s or Christie’s, so pretty cool.

From our standpoint, we have a decentralized crypto asset that offers exposure to a growing marketplace in a hot space (NFTs). Many long-term RARE supporters, like 1Confirmation, are MKR holders, so there is a philosophical alignment among the projects. And the more decentralized valuable assets on the platform, the better diversified we are as far as our primary product offering (vaults). RARE might not be grand slam collateral, but onboarding it is another step in the right direction. Lastly, with Growth’s outreach, I believe we can convince the Superrare team to (i) use vaults for RARE treasury management and (ii) list Dai as a purchasing currency on the platform.

Both developments would positively impact Maker and Dai expansion and promote Dai over centralized fiat token alternatives.

NB - - I am a digital art collector and RARE holder and plan to open a RARE vault if the opportunity arises.