Unlock your DAI's true potential
The following should help you understand how rDAI works.
Remember rDAI is an ERC20 token, so almost everything is done in your own wallet of choice
You will only need to interact with our dApp (or the contracts) for specific actions
This explanation covers most of the functionality of rTokens and rDAI, although we have kept out some of the complications caused by compounding.
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Bob opens the rDAI app. He transfers 100 DAI to the contract.
100 rDAI are minted and credited to Bob's account.
The 100 DAI are invested at the best rate on selected DeFi lending protocols.
Bob chooses to donate his interest to UNICEF
Now, Unicef will get all generated interest, but can't touch the 100 DAI
Bob transfers 100 rDAI to Charlie.
Charlie has never had any rDAI before, so he inherits Bob's hat
Charlie prefers to donate to the Eth Berlin Zwei Hacker fund.
He opens the app and changes his hat.
Eth Berlin immediately starts accruing interest
Charlie transfers 100 rDAI to Alice.
Alice has a UNICEF hat, so UNICEF starts accruing interest again
Alice wants her 100 DAI back. She opens the rDAI app, and clicks the redeem button.
UNICEF wants to withdraw their accrued interest
Interest payout can be triggered by anyone, immediately crediting rDAI to UNICEF.
If they want, UNICEF can redeem their rDAI to DAI at any time.
