Participation in the DeFi and strike ecosystems has exploded over the past year, with the combined industries currently accounting for more than $ 50 billion in value.
DeFi growth was mainly fueled by the breakthrough success of Ethereum-based projects such as Aave, Compound and Uniswap, using ERC20 stablecoins such as USDC and Dai to generate revenue. Digital assets deployed on other networks were left behind and unable to participate in the emerging DeFi ecosystem.
If those strikers wanted to access DeFi without introducing new capital, they would have to reverse and sell their investments to enter the market. That meant giving up potential capital gains and deploying rewards from those assets.
Singapore start up RAMP DeFi is now pioneering an alternative solution that enables participation in the Ethereum-based DeFi ecosystem – without sacrificing the future benefits of other deployed digital assets. It has attracted investments from Alameda Research, IOST and Blockwater Capital, among others.
A cross-chain liquidity on / off disaster
RAMP DeFi’s innovative decentralized protocol solution proposes that capital bet on non-Ethereum blockchains can be collateralized in a new stablecoin “rUSD” issued on Ethereum, which acts as a bridge between non-ERC20 tokens and the Ethereum chain .
By borrowing / borrowing, bootstrapping stablecoin liquidity, and integrating with other DeFi solutions, rUSD holders can either deploy rUSD to generate higher yields or trade for USDT / USDC. This creates a seamless on / off disaster for users with capital deployed in other chains to access DeFi without giving up future potential gains or rewards from the collateralised digital assets.
How does it work?
For each integrated blockchain “X”, a RAMP strike node and smart contract on blockchain X is set up to manage the assets. Token X is being deployed in the RAMP ecosystem to continue to receive blockchain X strike rewards.
A Wrapped Token X is then issued and used to collateralise and store a blockchain X native stablecoin, xUSD. xUSD is based on a collateral ratio comparable to MakerDAO.
xUSD can then be exchanged into the ERC20 rUSD stablecoin using the on / off ramp cross-chain bridge. From there, rUSD can be used for yield farming opportunities or directly exchanged for other stablecoins using decentralized liquidity pools.
An ever-expanding ecosystem that is gaining momentum
The liquid staking solution from RAMP DeFi opens an ecosystem of services, assets and opportunities that is already starting to take hold:
rStake is the part of the ecosystem where non-ERC20 tokens are deployed and wrapped tokens are issued to represent ownership of the underlying assets. It is an aggregator of stakeout nodes on the participating blockchains, returning 70% of the wagering rewards to the user, driving participation through additional RAMP governance token rewards. The remaining staking rewards generate fees for the RAMP ecosystem to aid in stability.
rMint uses the wrapped tokens issued by rStake as collateral to store a stablecoin for the respective X blockchain (xUSD). xUSD is then switched to ERC20 rUSD for use in the Ethereum DeFi ecosystem, earning RAMP rewards.
With the Vaults RAMP and rUSD utility, holders can stake, farm, and participate in revenue stacking opportunities.
rUSD can also be exchanged directly for USDT / USDC and Vaults can connect to existing solutions such as YFI, Uniswap or Sushi.
rKeeper manages the conversion of liquidated assets into stablecoins for rUSD where needed for value support or redemptions. rKeeper converts the value of liquidated assets to USDT / USDC at the equivalent of originally struck rUSD.
The rUSD buyback by rKeeper only takes place when rUSD is less than 1: 1 with USDT / USDC, creating stability for the rUSD utility.
The fees generated by rStake are used to buy back and burn RAMP, thereby removing tokens from circulation. rburn is designed as a “smart burn” mechanism that again helps to provide stability to rUSD as an alternative stable mint and bridge to the Ethereum-based DeFi network.
Open the defi to non-ERC20 tokens
RAMP DeFi introduces a solution with the potential to unlock $ 30 billion in a previously illiquid digital asset sector, which will quadruple with the move to Ethereum 2.0 alone.
The RAMP ecosystem represents exciting growth potential for DeFi, leveraging existing success while opening more opportunities for ERC20 and non-ERC20 tokens to access additional revenue-generating services. It effortlessly connects a range of digital assets to the decentralized financial market, in an increasingly interoperable space, driving DeFi adoption as a result.
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