Omnipair

Why MetaDAO Over VCs and ICOs

Rakka came to crypto during the ICO boom and watched projects raise hundreds of millions with nothing more than a landing page and a roadmap. The result was broken incentives everywhere — founders sitting on treasuries so large that the money itself became a problem, moral hazard where the raise exceeded any future revenue the project could generate, and communities left holding worthless governance tokens.

When Rakka started building Omnipair, he needed capital for audits but had zero access to VCs or networks. He discovered MetaDAO and was immediately drawn to the code quality and the futarchy mechanism. Unlike Pump.fun, whose code was not even publicly verified, MetaDAO's conditional token vault was open, well-architected, and battle-tested.

„MetaDAO changed my life."

With barely ten followers on Twitter, Rakka connected with Prophet — and Omnipair became one of the first real startups to raise through MetaDAO.

Quitting the Job: A Leap of Faith

On July 30, 2025, Rakka tweeted that he quit his job. Omnipair had raised through MetaDAO — something he did not expect to work, given he was an anonymous founder with only an MVP contract and a lean app to prove the concept. Prophet pushed him over the edge, telling him to send his resignation letter the next day.

„We didn't even start yet."

The raise was roughly $1M — deliberately modest. Rakka understood that a massive treasury would distract from execution and invite scrutiny. Having a liquid token in the market created pressure, but it also created validation and speed. He estimates Omnipair shipped in about six to seven months, roughly double his initial estimate but extraordinarily fast compared to VC-funded competitors.

Permissionless DeFi: The Real Moat

Rakka's core thesis is that DeFi is far more permissioned than people realize. On Solana, you can trade tokens on AMMs and spot markets — but you cannot leverage them, short them, borrow against them, or use them as collateral. Ninety-nine percent of tokens are isolated from any real financial infrastructure.

„DeFi is actually very permissioned. And unlike what we imagine it to be."

Omnipair changes this by combining an AMM with a lending protocol in isolated pools. Any token can have a lending market without needing to be whitelisted by a risk committee or plugged into an oracle. The system uses an EMA (exponential moving average) over spot prices instead of external oracles. A dynamic collateral factor adjusts LTVs based on real-time market conditions, following the XY=K curve.

„Ninety-nine percent of the tokens are actually isolated from DeFi."

Liquidations and Bad Debt

Omnipair's liquidation mechanism is fundamentally different from protocols like Aave. Instead of requiring external liquidators to bring outside liquidity, Omnipair seizes borrower collateral and dumps it back into the AMM, writing off the debt from the pool. This is effectively a swap within the system, and the protocol accounts for price impact during liquidation to prevent creating bad debt.

Bad debt is formalized and expected in Omnipair — a departure from protocols that treat it as something that should never happen. When bad debt occurs, it is socialized pro-rata across all liquidity providers in the isolated pool. Without socialization, bad debt sticks in the pool and gets applied to the last person to exit, creating a bank-run dynamic.

„The only way to avoid getting bad debt and guarantee that you will never get bad debt is just not to lend at all."

Asking the DAO for an Allowance

Rakka used Omnipair's treasury to fund audits — but only after going through MetaDAO's governance. The treasury belongs to the token holders, not the founders. Futarchy acts as a guardrail: if someone proposed spending $500K on an audit, the market would reject it as suspicious. Bad proposals get filtered out by the mechanism itself.

The friction is minimal — three or four days to write and pass a proposal. Rakka sees this as the opposite end of the spectrum from ICOs, where founders get full control and zero accountability. The trustless model is harder, but it is the right model.

„Who owns this money? Is it the founder? Is it the team? Or is it the holders?"

The Future: Beyond Constant Product

Rakka questions whether concentrated liquidity market makers are the right approach to capital efficiency. He views the problem as more fundamental — the real issue is that idle capital in AMMs does nothing. Omnipair solves this by lending the idle capital.

The roadmap includes aggregator integrations, leveraged trading, one-sided deposits, and impermanent loss hedging — which Rakka considers very doable now that the lending layer exists. He sees Omnipair not as the final form but as the beginning of a new genre of AMMs.

„Omnipair is not the end of it. I think it's just a start of this genre of AMMs."