I have a 2s lipo in my 1/16 rally vxl and it gets a little puffy after running. My question is will it be ok to continue to use and charge this battery or should I discard of it? It doesn't balloon up or anything crazy but it is noticeably puffy to the touch after use.
I would not continue using it.
It sounds like it is not up to the task of powering your Rally... I suggest SPC packs as they have been proven to be a great and yet affordable pack.
Here is a link to SPC:
Whatever it is I just typed... could be wrong.
I run all SPC lipos, they have a discharge rate of 50C
Sounds to me like you are stressing out your lipos.. Get some SPC 's and call it a day
Ps: I ride Specialized too!
7107 Merv Brushless, Soon to be Big Block