As the DeFi Ecosystem continues to grow with more than 58 billion USD worth of assets invested, the majority of cryptocurrency investors won’t actually see benefits from that growth. Pure Bitcoin holders, for example, don’t currently have access to either DeFi apps or services.
The intelligent minds behind RAMP DeFi recognised this as a potential opportunity, and created a platform to enable even non-ETH holders to gain exposure to DeFi products. RAMP DeFi was designed by Lawrence Lim, who has a track record of spearheading prominent blockchain projects including IOST and Hashed lab. His Co-Founder, Loh Zeng Rong, has a background in wealth management and experience as CIO. Together, they’ve managed to quickly assemble an impressive board of advisors, including the likes of J.P Morgan, Microsoft from a more traditional corporate world, as well as Blockwater Capital and Binance.
RAMP’s mission is to increase the adoption of Ethereum and DeFi as a whole by allowing non-ethereum users to stake their tokens on Ethereum platforms. The decentralised protocol creates a win-win situation in which non-ethereum users benefit from staking, lending and yield farming while ETH users benefit from RAMP by earning higher yields.
To give holders to access the ecosystem, RAMP relies on a liquidity on/off-ramp, during which non-ETH assets will be converted into collateralised stablecoin rUSD, and ERC-20 stablecoins can be changed to eUSD for use in the RAMP DeFi Liquidity pool.
The on-ramp process is visualized in the picture above. Currently, the collateralization ratio is at 200%. This ratio means that anyone wanting to mint $1000 rUSD on the platform will have to deposit $2000 in a non-ethereum asset into the contract.
To ensure that rUSD remains stable, once the collateralization ratio falls below 120% (when BTC has another dip for example), liquidations will be triggered. However, unlike on other platforms where holders had to monitor their positions closely to make sure they’re not liquidated, RAMP DeFi sends warnings out before then. When receiving a warning, a holder can decide to either increase their collateral or exit the position.
rUSD Holders can benefit from using funds locked in non-ethereum tokens while leveraging a fully collateralized stablecoin and earning staking rewards even after conversion.
eUSD holders receive interest from lending, provide liquidity in the RAMP liquidity pool and farm RAMP or earn yields from farming other DeFi tokens.
The RAMP Ecosystem comprises several products such as
- rMint and rStake: while rMint mints new rUSD, rStake keeps the collateral
- rSwap: enables users to swap ERC-20 tokens directly with non-ERC20 tokens. Oracles determine the exchange rate.
- rPool: Universal liquidity pool that executes liquidations and ensures that collateral is maintained and value distributed.
The RAMP token fuels the whole ecosystem. RAMP is a utility token used to align incentives among different parties. While tokenomics suggest an inflationary model with supply increasing, RAMP has introduced a deflationary aspect by introducing token burns. RAMP holders who hold at least 1% of the supply can also participate in governance decisions and vote on changes to the protocol.
RAMP tokens are further used to increase the network through referrals. Anyone bringing new users to RAMP can receive RAMP as a reward while RAMP is also given to developers who help integrate it with other DeFi apps. The token can be staked in the rPool to receive rewards.
All in all, the utility of RAMP is expected to grow alongside growth in rUSD issuance, growth in DeFi protocols using rUSD, growth in fees generated, increasing yield farming and governance participation. RAMP will certainly also benefit from the increasing awareness surrounding cryptocurrencies and DeFi in general.
RAMP is now trading on Bitcin.com Exchange with BTC and USDT pairs.