UNLOCKING Value on every Blockchain - RAMP DEFI

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Description

RAMP DEFI is a project I'm very excited about - they allow the unlocking of value on different blockchains. This means cryptocurrency stakers and node holders to continue staking AND generate even mor...

AI Analysis

Decentralized finance, or DeFi, is super hot right now, and while everyone talks about "total value locked," there's a new player in town called RAMP DeFi focusing on "total value unlocked." RAMP DeFi aims to let you leverage your already staked cryptocurrency assets on various blockchains, like Elrond and IOST, without actually unstaking them. This means you can keep earning your staking rewards while also generating liquid capital in the form of a cross-chain stablecoin, which you can then use within the broader DeFi ecosystem, particularly on Ethereum, for things like yield farming.

Here's a deeper dive into RAMP DeFi and the current state of decentralized finance:

* The DeFi Boom and Its Evolution: DeFi is booming with a lot of energy and attention, and it's evolving rapidly. The industry is very experimental, and while things can break sometimes, it's crucial for learning and building a stronger foundation. This rapid pace helps create a vast pool of knowledge and resources for everyone to draw upon.
* Centralized vs. Decentralized Finance: While crypto initially mirrored traditional finance with a preference for centralized exchanges, decentralized solutions like Uniswap have revolutionized how financial mechanisms work. Uniswap, with its continuous liquidity pool concept, completely changed how exchanges operate, moving away from reliance on order books to a more automated, transparent, and open model where anyone can contribute liquidity. This effectively "crowdsources" liquidity, which is a powerful aspect of blockchain and DeFi.
* RAMP DeFi's "Total Value Unlocked" Vision: Instead of competing for the same "dollar" in the existing Ethereum-centric DeFi ecosystem, RAMP DeFi looks outside to unlock value from other active blockchain ecosystems. There's over $22 billion in staked digital assets on Proof-of-Stake (PoS) blockchains that are currently separated from the main DeFi action. RAMP aims to bring this value into the DeFi space, effectively "growing the economic pie" for everyone.
* Addressing the Capital Allocation Dilemma: For many investors, it's a tough choice: keep assets staked to earn rewards on their native chain, or move them to Ethereum to participate in DeFi. RAMP's solution allows users to have both – they can continue earning staking rewards while simultaneously participating in DeFi activities.
* How RAMP DeFi Works:
* Users delegate their staked assets (like Elrond or IOST tokens) into RAMP's non-custodial smart contracts on their native blockchain. This means users retain ownership and continue to receive their staking yield.
* In return, RAMP collateralizes these staked assets to generate a stablecoin on the native blockchain.
* This stablecoin can then be wrapped and seamlessly moved over to the Ethereum ecosystem.
* Crucially, RAMP aims for a common stablecoin standard, meaning the risk is spread across a portfolio of different underlying assets rather than being dependent on a single token or price.
* This system allows for "yield stacking"—users earn staking rewards, potentially benefit from capital appreciation of their original assets, and can also farm RAMP tokens as part of the reward for using the system.
* Security and Risk Mitigation are Key:
* RAMP is developing a MakerDAO-like setup natively on each integrated chain, which includes robust collateralization and liquidation functions.
* To prevent immediate liquidations due to minor price fluctuations, they start with high collateralization ratios.
* There's a mechanism for "offtake" liquidators (OTC liquidators) to step in if prices drop significantly and don't recover within a set timeframe (e.g., 24 hours), preventing a wave of defaults from hitting the open markets and causing a "domino effect" on token prices.
* Security audits are paramount. RAMP is working directly with blockchain foundations (like Elrond and IOST) who know their platforms best to ensure the smart contracts are robust. They also bring in external contract auditors for an "extra pair of eyes" to ensure everything is tight before release.
* The RAMP Token's Purpose: The RAMP token is designed to power the ecosystem and provide value to its holders:
* Governance: RAMP token holders participate in the governance of the project, allowing the community to decide the direction of the solution.
* Yield Farming Incentives: The yield farming reserves are divided into various pools, incentivizing different asset holders to join and participate in RAMP's ecosystem activities. Users earn RAMP tokens for using the stablecoin or participating in lending/borrowing.
* Farming Power: Holding RAMP tokens gives users greater farming efficiency. The more RAMP you hold, the more efficiently you farm, rewarding those who are committed to the ecosystem.
* Shared Interest Pool: All staking rewards and interest generated by the RAMP ecosystem flow into a "shared interest pool." RAMP token holders who stake their RAMP tokens will receive returns and yield from this pool, creating a strong business model for the token and disincentivizing holders from just dumping their tokens. This means the token has inherent value accretion.
* Funding and Investors: RAMP DeFi raised just over $1 million in a private sale. Prominent investors include Alameda Research, Verify Capital, and Arrington Capital. These venture funds recognized the "product-market fit" as they had invested heavily in various blockchain ecosystems and are looking for ways to unlock the capital tied up in those platforms.
* Launch and Partnerships: RAMP DeFi is actively signing partnerships, with Elrond and IOST being the first two announced partners. The delegation contracts are already underway, and the launch is expected "very soon" for these initial chains. They encourage Elrond and IOST holders to get ready to participate early.
* How to Connect with RAMP DeFi: You can follow RAMP DeFi on Twitter (@RampDefi) and join their official Telegram community (@RampDefiOfficial). A public sale for the RAMP token will also be announced very soon.

Transcript

Hey guys and welcome back to Box Mining. Now over the past few weeks you guys probably know that decentralized finance is just super hot right now but you've been hearing a lot about total value locked and all this fancy DeFi jazz. Today we're going to look at total value unlocked with a project called Ramp. So today I have Lawrence Lim here and he's going to talk a little bit about what he's working on in the decentralized finance space and if you're holding Elrond or IOST you should pay atten...