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How RAMP DeFi Can Be A Game Changer In Creating Liquidity For Staked Capital On Non-Ethereum Networks

2020, the final year of the past decade will be remembered for the breakout of the Coronavirus pandemic that brought the entire world to a standstill. However, for the altcoins users and enthusiasts, it was reassuring. As conventional stock prices plummeted, the cryptocurrency market stood its ground. Interestingly, the decentralized finance (DeFi) market has grown exponentially; especially at a time, when shares and conventional stock prices were tanking globally. Certain studies estimate that the Total Locked Value (TVL) in DeFi deposits shot up from USD1 billion to USD17 billion in just about a year. As the figures already indicate that the DeFi space is expanding, now is indeed the time to expect a lot more happening.

Defipulse snapshot as of January 2021 (updated snapshot from January 2021)

While there are several innovative and intriguing projects related to DeFi that are worth noticing, RAMP DeFi is interesting as it vie to be a game changer by creating a seamless and transparent ecosystem to provide liquidity from staked capital on the non-ethereum networks.

The project aims at catering to investors who have their capital invested in non-ERC20 digital assets. The typical problem facing such investors is when they intend to explore Defi yield opportunities, and do not want to put in more capital, they have to reshuffle their investment portfolio and rely on popular ERC20 stablecoins such as USDT or USDC. This is not just a hassle but it also cuts into the profitability on their investments. Divesting their portfolio and purchasing stablecoins like USDT or USDC means they will not benefit from any future capital gains or the staking rewards on their staking portfolio on the non-erc20 network.

Creating A Dedicated Stablecoin For Collateral Staked Liquidity

To save investors from having to sell their existing portfolio and purchase stablecoins such as USDT or USDC, RAMP Defi, is creating a dedicated stablecoin issued on the Ethereum Blockchain. The r-USD (Ramp-USD) will serve as a collateral for the staked capital on the non-ERC staking Blockchain. As such within the Ramp DeFi ecosystem users will be able to “borrow, lend or exchange rUSD for other stablecoins such as USDT or USDC.” Instead of selling the portfolio, investors who have staked capital on the non-ERC20 staking blockchains will now be able to retain the majority of staking rewards on their staked portfolio. Moreover, they can seamlessly get their staked capital converted into rUSD which would in turn allow them to participate in any other investment opportunity of their choice. Now this can be a potential gamechanger, especially for investors who have millions staked in nor-ERC20 digital assets.

Moreover, RAMP token holders will have additional benefits. They will be able to leverage their rUSD tokens to earn a range of incentives be it from the buyback and burn using the fees generated or from the multiplier effect on RAMP token farming efficiency. Also, the value of the tokens are expected to increase as the ecosystem expands and more and more rUSD are issued. With an increase in DeFi protocols that rely on rUSD the price of the tokens are expected to increase.

The Market And The Road Ahead For RAMP

At the very outset, RAMP has its customer base defined. The market it aims to capture is huge. Reports estimate that the entire global market cap for Proof-of-Stake (PoS) staking is worth over USD156 billion. Even if just one percent of the assets staked on the non-ERC20 network gets its collateral liquidity through the rUSD within the Ramp ecosystem, it would be huge. The question is whether or not RAMP DeFi is providing a transparent and credible solution to the investors it promises.

A quick look at its products and the developments so far smell of nothing but sheer positivity. Moreover, the RAMP ecosystem is fully decentralized. To the core, it is a community-based project where token holders have a complete say in the policy-making processes. The steady progress they have made so far has been transparent and they have also made upgrades on their already launched projects in 2020.

RAMP DeFi a seemingly simple idea with a really powerful use case. It has direct utility for its target customers and the entire operative mechanism has been thoroughly explained. If the project manages to achieve even one percent of the target market, the rUSD tokens would be priceless.

Get to know more about RAMP and visit https://rampdefi.com/

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