RAMP DEFI is a decentralized protocol that allows users to stake non-Ethereum tokens on the ETH network.
At the same time, Ethereum users can interact with the RAMP protocol and increase their yield earnings.
The name of the game is interoperability.
There's much more to RAMP than just interoperable DeFi.
And it's just getting ready to ramp up.
Get it?
Let's get it!
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Welcome to BitBoy Crypto! The largest crypto channel in all the Interwebs.
My name is Ben.
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Today, we're going to be taking a look at one of the more promising projects in DeFi.
RAMP is a blockchain agnostic liquidity network.
And no competitors thus far are trying to do what RAMP is doing,
which is extremely rare in crypto and marks a possible huge opportunity.
RAMP is both a yield optimizer like YFI
and a collateralized stablecoin product similar to MakerDAO
rolled into one protocol.
RAMP supports staking.
In return, stakers receive part of the protocol rewards in what's known as the rPool.
It's important to note that RAMP's overall value is tied to the protocol's activities,
such as the rUSD and eUSD issuance,
the usage of rFinance, rSwap, rPool and its community-based governance.
With that said, it's a little confusing at first,
and even I didn't understand it until I really dug deep.
DeFi, of course, is still new and far from user-friendly,
but I'm going to attempt to detail each part of this ecosystem to you so you can understand it better.
So users on the Ethereum blockchain can mint eUSD by depositing ERC-20 stablecoins into RAMP's eUSD liquidity pool.
This means that rUSD and eUSD holders can exchange, lend or borrow the tokens freely,
and, in turn, create liquidity for users who have capital locked into staking contracts.
RAMP DEFI enables the staked capital of non-ERC-20 staking blockchains
to be collateralized into a stablecoin known as rUSD that's issued on the Ethereum blockchain.
RAMP powers token exchange between different blockchains.
Tokens using a non-Ethereum address are first converted and collateralized into stablecoins,
which is rUSD, of course,
then used on the Ethereum blockchain.
Similarly, ERC-20-based stablecoins are changed into eUSD for using RAMP's DeFi liquidity pool.
The tokens retain their same functionality.
Even though they're locked for staking on different decentralized systems,
they can still easily be traded within RAMP's ecosystem.
There's some benefits, of course, to both the rUSD and eUSD tokens that you need to know
which will help you navigate the RAMP ecosystem.
rUSD token benefits are as follows:
You can use funds locked in non-Ethereum blockchains without giving up existing positions.
You can access ERC-20 opportunities such as yield farming or trading
without having to put in more of their assets.
They have fully collateralized stablecoins.
You can earn staking incentives.
You can maintain potential revenue from existing positions and collateralized portfolios.
For eUSD holders:
You can get interest from lending out your digital wealth
and provide liquidity across numerous DeFi protocol yield farm pools.
You can farm RAMP DEFI's native token, RAMP.
You get yields from farming other DeFi projects partnered with RAMP.
Now, according to its whitepaper, the way RAMP is designed,
it provides collateralization assurance for rUSD using MCR,
which stands for minimum collateralization ratio,
to indicate a collateralized ratio of 200%.
This ratio is important because it ensures that rUSD holds half the value of the minting token.
For example, $2,000 worth of Bitcoin can mint $1,000 worth of rUSD tokens.
Now, of course, with collateralization brings every crypto users worst fear,
liquidation.
RAMP DEFI will automatically begin the liquidation process
when a user fails to pay his or her debt obligation falling below 120%.
However, before giving you that dreaded liquidation message,
RAMP is nice enough to issue a warning,
allowing you a chance to deleverage yourself by paying back open loans.
Although re-collateralization is simple requiring user to just send funds into the staking contract.
No, the liquidation happens on the platform's universal pool, rPool.
Once a liquidation occurs, the pool sells the tokens on cryptocurrency exchanges
and deposits the funds into the pool which are later shared between RAMP's token holders.
RAMP powers a host of DeFi elements on its protocol ranging from staking to minting.
For example, rFinance, eMint and eFarm,
rMint and rStake,
rSwap,
rPool.
They love Rs.
So for rMint and rStake,
this allows for non-ERC-20 tokens to be collateralized to mint rUSD.
You would think they were pirates, but that's a different story.
Collateral that is designated to rStake is aggregated by different nodes on RAMP partner non-ERC-20 blockchains.
You can also earn staking rewards.
For eMint and eFarm:
The eMint enables the deposit of ERC-20 stablecoins to mint eUSD,
a token which represents the value of the amount deposited by users.
The deposited funds are transferred to eFarm to create yield farming opportunities for users.
Then, of course, you have rFinance.
The platform's lending and borrowing service is provided by rFinance.
rUSD and eUSD holders can freely lend and borrow from one another.
Then you have rPool.
RAMP has its own liquidity pool as briefly discussed earlier.
This allows users to build value for their assets, collateralization, insurance,
liquidation and cross-chain swaps.
rPool gains value from staking rewards, yield farming rewards and revenues from fees,
which are then later distributed to the holders of RAMP tokens.
Now, in the event that rUSD suffers from a crash,
rPool is first utilized to support its value.
If the value of a user's collateralized position
drops below the allowed collateralization ratio set within the specific parameters,
then their positions are liquidated to the rPool.
Next, you have rSwap.
Users can swap ERC-20-based stablecoins with any other non-ERC-20 token
provided that the tokens are part of RAMP's blockchain partners.
They do this by facilitating the exchange of ERC-20 stablecoins
with the cryptocurrencies stored within the rPool.
The conversion rate is set by various price oracles.
RAMP has organized some big collaborations with projects like Elrond,
TomoChain, Injective Protocol,
AllianceBlock and Binance Smart Chain.
So what does holding the actual RAMP token yield you?
That was a DeFi joke.
First, governance.
With RAMP DEFI being a decentralized platform, it offers its holders community governance.
However, to participate in governance votes like suggesting a change to the protocol,
you have to hold at least 1% of RAMP's total supply.
But if governance isn't your cup of tea,
then maybe you'll like earning referral rewards for bringing in new users.
Referral rewards are distributed using the RAMP token.
Now, in addition to user referral rewards,
there's also rewards for developers for helping integrate RAMP DEFI
with other decentralized networks in the DeFi ecosystem.
RAMP was co-founded by Lawrence Lim and Loh Zheng Rong.
Before starting RAMP,
Lim was the head of international growth at IOST and handled global sales at TradeGecko.
He was also responsible for mergers and acquisitions at KPMG Corporate Finance LLC
and asset management at JPMorgan Chase & Co.
Loh Zheng Rong co-founded NOX Pte Ltd
and was a blockchain consulting partner at Merkle Ventures LLP.
He was also the chief operating officer and co-founder of Toucanapp.
Rong has a Bachelor of Business Administration,
a degree in Finance Wealth Management from Singapore Management University.
RAMP DEFI's advisors include a few small companies like, I don't know,
Binance, JPMorgan, Microsoft,
Blockwater Capital.
Investors include ParaFi Capital,
Alameda Research,
Orthogonal Trading and Ruby Capital.
Of course, thank you to RAMP DEFI for sponsoring this video.
While nothing in this video is financial advice,
we definitely have the opinion here at BitBoy Crypto that RAMP is definitely one to keep your eyes on.
If you want to pick up your own bag of RAMP,
you can do so, of course, by visiting Binance, Uniswap, Bibox, FTX or PancakeSwap.
Oh, and before I forget,
there's an ongoing liquidity mining campaign launched in partnership with MoonSwap,
a leading DEX on the Conflux Network.
Do you guys think this is the next project to blow up?
Drop your comments down below.
That's all I got.
Be blessed.
BitBoy out.