2020 is undoubtedly the year of Decentralized Finance (DeFi). Between decentralizing bank functions, yield farming, and the 6.78 billion dollars held in contracts, the interest is apparent. One previously ignored aspect is the staking ecosystem. Over $22 billion in currency is locked up in staking various coins like XTZ, ONE, and SXP. While this helps secure these crypto networks and provide rewards, these assets can no longer participate in the market. The RAMP DEFI platform is a cross-chain on/off-ramp for the staking market. It is tapping into this market by creating a new DeFi avenue: collateralizing staking assets.
RAMP DEFI – Collateralized Staking
Traditionally, staking coins removes them from the market to secure their respective blockchains. While beneficial for their networks’ safety, this limits holders’ ability to use that capital for other uses. What RAMP DEFI is creating is a way for users to stake their coins while having access to those funds.
For the Users
Being able to access capital tied up in staking coins is a massive benefit. RAMP DEFI can do this by issuing a new stablecoin, rUSD, for the equivalent of locked assets. Users with $100 of staked assets can receive $100 worth of rUSD. Alternatively, Ethereum users can deposit ETH or ERC-20 tokens and mint eUSD stablecoins. Either of these stablecoins can be used for trading, borrowing, or lending on Ramp DEFI’s platform, the latter potentially earning more RAMP.
A liquidity pool rPool will ensure value distribution, collateralized insurance, and cross-swaps for the RAMP DEFI system. Below is a more detailed list of specific advantages RAMP has over existing protocols.
Following the best industry practices, RAMP DEFI is the native token for the platform. The platform incentivizes users to hold tokens by offering several rewards.
- Users receive regular distributions from the value accumulated within the universal liquidity pool
- Token holders gain governance and voting rights, shaping future policies
- A multiplier effect on RAMP token farming efficiency
Users can earn yields from multiple streams on the RAMP DEFI platform. Aside from usual staking rewards from other coins, staking RAMP allows users to earn rewards from a rewards pool. This also imparts “Farming Power,” further increasing yield potential.
Yield farming on RAMP DEFI is a multi-layered process. Instead of one farming pool, there are three. This is intentionally designed to drive network participants to engage in activities within the RAMP ecosystem, in which the more the active they are, the more RAMP they can farm. From the whitepaper:
“Alpha Pool: liquidity farming pool where users receive RAMP tokens based on their proportion of rUSD and eUSD held within the combined issued rUSD and eUSD pools.
Beta Pool: trade farming pool where liquidity providers can mine RAMP tokens by providing trading liquidity on Uniswap and Balancer for RAMP trading.
Delta Pool: interest farming pool where users receive RAMP tokens based on their proportion of interest fees generated from borrowing and lending activities.”
There will no doubt be enterprising coders who create dApps that optimize these pools to maximize profit. Looking at the success of COMP and other protocols, we can expect the programmability and gamification of DeFi to grow.
Before their planned public sale, RAMP DEFI cultivated a group of investors with interest in the project. These include Alameda Research, ParaFi Capital, XRP Capital, IOST, Signum Capital, Ruby Capital, and Blockwater VC.
Project Lead Lawrence Lim of RAMP DEFI spoke about the global interest. “We are thrilled to have the support of some of the most prominent investors in the blockchain industry. Many of these investors experienced first-hand inconveniences with locked liquidity and saw the value in what we are building. We are excited to work closely with them to bring the DeFi market a solution that will provide access to over $22 billion of staked digital assets that can now be efficiently utilized.”
For retail investors who wish to be involved, RAMP DEFI’s public sale should open within the next two weeks.
Their most announcement is a partnership with Elrond, a blockchain company working on increasing transaction throughput. Elrond Validators will be able to borrow against their staked tokens using the RAMP DEFI platform. This cooperation between projects is encouraging, and will likely be the first of many cross-platform agreements.
“Enabling validators to access immediate liquidity for their locked assets is a great way to significantly increase participation to the DeFi ecosystem. We’re excited to create these options for eGLD staking together with RAMP DEFI”, said Beniamin Mincu, Elrond CEO.
RAMP DEFI is a new project, one so early in development its token is not up for public sale. The recent bullish trend in the crypto markets, and DeFi specifically, has brought increased visibility for everything blockchain-related.
But while an MVP is not scheduled to be released until Q4 of 2020, development is encouraging. Based on the existing demand for more flexible DeFi solutions, RAMP DEFI has a good chance of succeeding.
RAMP DeFi Whitepaper is here.
The website is here.
The telegram group is here.
The Daily Chain
*Disclaimer – RAMP DEFI is our Media Partner, and therefore this content is sponsored by them.