The Yield Farming trend is sweeping cryptocurrency. Between Uniswap, Sushiswap, Binance Smart Chain, and YFI, enterprising investors are taking high risks for equally high rewards. But for those with less risk appetite, are their options limited to Masternodes and other staking protocols? The answer used to be “yes,” but fortunately that is no longer the case. With RAMP’s integration with Solana, stakers will soon have access to the cross-chain DeFi farming that is ever so popular.
RAMP and Solana
RAMP’s Unique Selling Point (USP) is its ability to tokenize staked crypto assets. Say, for instance, Alice was staking Solana. Normally these assets are locked up, unable to be used for trading or any other purpose. RAMP can free up this capital which can in turn be lent or sold on an exchange. Users can use the same mechanism to unlock liquidity on the Solana blockchain.
The freed capital on Solana is a stablecoin, solUSD. Once this has been derived from staking Solana, users can exchange this on Ethereum for RAMP’s stablecoin, rUSD, in a 1:1 transfer. The rUSD is then spendable on any participating exchange.
As Solana’s Medium article puts it, the benefits of this cross-chain functionality are plenty:
- Users retain their SOL staking rewards
- Users get capital gains potential on holding SOL
- Users gain access to liquid capital to invest in new opportunities without needing to inject additional capital
- Enhance staking yields and farm RAMP tokens by actively participating in the RAMP ecosystem.
That fourth example should be of particular interest. The synergy between RAMP and Solana will enable holders to increase their yields by participating in the RAMP ecosystem. The exact interaction has not been specified, but it could involve either a multiplier or be dependent on specific actions.
While the lending/borrowing functionality of RAMP’s ecosystem has not been implemented, the potential is massive. As Solana is the blockchain foundation for Serum (SRM), any exchanges or projects build on Serum would benefit from increased liquidity. This is compounded by the fact that over $350 million of SRM is currently staking.
Gamifying the staking ecosystem has never been done before and creates a compelling scenario for stakers of SRM. Will they use their solUSD to purchase more SRM to add to their staking pool? Will they diversify with other projects? What is the best way to continue to earn these yields? No doubt an enterprising developer will create an optimal game theory around this.
RAMP’s Twitter: https://twitter.com/RampDefi
RAMP’s Telegram: https://t.me/rampdefiofficial
RAMP’s Medium: https://medium.com/rampdefi
The Daily Chain
*Disclaimer – RAMP is our Media Partner, and therefore this content is sponsored by them.