Longtime readers of The Daily Chain will find a running theme of Technology and Innovation. Our platform focuses on the intersection of blockchain, cryptocurrency, markets, and implementation. It is this last component, implementation, that is perhaps the hardest to achieve for cryptocurrency. One of the more recent issues facing the community is staking tokens. Getting returns on staked assets, but it limits the accessibility of said assets as they are locked. With the partnership between RAMP and Injective Protocol, the industry is one step closer to overcoming that hurdle.
For background, there is over $25 billion in staked assets. These coins can be Tezos, Theta, or a multitude of other possibilities. While staking, these assets are locked, similar to funds in a bank certificate of deposit (CD). However, imagine in our bank example, the customer could use their CD as collateral for a 1-to-1 loan. This financial instrument exists as a Secured CD Loan, and like every other loan, the bank charges interest on it. Reverse mortgages operate similarly – using the house as collateral for a loan.
If we translate this to the cryptocurrency space, we can see what RAMP is accomplishing. RAMP uses staked cryptos as collateral and issue derivative stablecoins as the loan.
The RAMP stablecoin can then be traded or used to speculate on additional assets. One of the main differences in the RAMP scenario is that there is no interest charged for this conversion aside from minuscule transaction fees. As we have detailed with our previous piece on Solana, users may earn off these stable coins with partnerships with other projects.
If this sounds complicated or high-risk, it’s because it is. Bringing traditional banking systems to a decentralized network is a monumental undertaking, especially considering that the foundations are continually refined and streamlined. Unfortunately, much of this Layer-1 infrastructure goes unnoticed as yield farms, high fees, outrageous returns, and rug pulls attract the most attention. The increasing popularity of DeFi on Ethereum and Binance Smart Chain has shown a strong market desire for all things DeFi.
The newest partner for RAMP is the Injective Protocol, a company working to solve the congestion issues with Ethereum. Injective is a Layer-2 solution backed by Pantera Capital and Binance Labs, two giants in the cryptocurrency world. This cooperation will be a welcome development for DeFi yield farmers on Ethereum, where transactions can take minutes and cost several dollars to execute. Its close partnership with Binance Labs has allowed Injective to begin integrating with other launchpad projects, including KAVA.
Built on Tendermint with COSMOS compatibility on the horizon, Injective Protocol may be the first Layer-2 solution to deploy on Ethereum. It will also be the first exchange to host RAMP’s stablecoin rUSD.
“We are extremely excited to be partnering with and listing our stablecoin on Injective Protocol. This collaboration is a fantastic opportunity for RAMP to continue to explore and discover new solutions for liquidity and security in the DeFi space. Injective will allow us to reach new consumers and scale alongside them.” Lawrence Lim, CEO of RAMP DEFI
The details of how RAMP DeFi is accomplishing its goals can be overwhelming. Even for those in the industry, it is nearly impossible to stay current on one project’s progress, let alone the entire sector. But by focusing on a few specific companies, we can gain a greater understanding of how the industry is adjusting and overcoming obstacles. DeFi is an exciting development in blockchain technology, and RAMP DeFi should become more known as the space gains relevancy.
RAMP DeFi Twitter – https://twitter.com/RampDefi
Injective Labs Twitter – https://twitter.com/InjectiveLabs
*Disclaimer – RAMP DeFi is our Media Partner, and this content is made possible through with support. The above article does not represent financial, investment or trading advice and we do not recommend the purchase of any cryptocurrency or product without consulting a financial aid. The Daily Chain strongly encourages you to do your own research before making any investment decisions.