Introducing $1USD and $RING tokens.
The DeFi landscape hasn’t stopped growing, although some people may think otherwise because of the DeFi native tokens performance in the last months. The TVL in the DeFi ecosystem has grown 10 times just from December 2020 to date.
However one thing is true: TVL goes down whenever there’s a market retracement. But Why? One may think that given that there are protocols that can handle stablecoins TVL shouldn’t go that low, but that is not true. Our main guess is that users are not used to farm their stablecoins, the first reason being that they just don’t know where and the second one being that stablecoin pools don’t offer good yields.
Previously we introduced to you the One Ring Protocol, a multi-chain cross-stable coin yield optimizer, where we proposed an automated yield optimizer, where the users can deposit any stablecoin and the protocol automatically allocates the money in the best pools available, doesn’t matter which stablecoin is needed, also this is done periodically, ensuring that the users always get the best yields available.
In this article we are going to explain how the users will be able to interact with the One Ring Protocol tools to maximize their yields. This interaction is possible thanks to the $1USD and $RING tokens, the protocol’s native tokens.
The protocol stablecoin.
$1USD is the official stablecoin of One Ring Finance. The peg comes from the collateral deposits. In order to mint $1USD the user has to deposit the same amount of any other stablecoin or stablecoin LP tokens into the protocol.
$1USD can only be issued this way so it’s fully backed. The relationship will always be 1:1 with any other deposited stablecoin.
In order to interact with the protocol, users must first deposit any accepted stablecoin into the platform to mint the equivalent amount of $1USD which is the only stablecoin that enables the One Ring optimizing tools.
As shown above, once users deposit any stablecoin, $1USD is minted and given in exchange, they can then stake the $1USD to claim the yields and rewards generated by their initially deposited stablecoins.
Or… they can provide liquidity in $1USD/XYZ token pair in any exchange to get LP fees or incentives granted therein. Doing so will forfeit any claim on One Ring Yield Optimizer gains and $RING rewards. Regardless of what users do with their $1USD tokens, yields generated from their initial stable coins deposits are auto compounded in the One Ring Vault and any forfeited yields will be given to the protocol treasury.
$1USD minting from any stablecoin provides arbitrage opportunities.
Suppose that we use 10 DAI to mint 10 $1USD and DAI goes down to $0.95, users would be able to withdraw 10 $1USD for 10 $USDC, then swap the $USDC for 10.5 DAI. this would give the user a profit of 5%.
The $1USD token shall be staked in order to use our protocol optimization tools and get yield from your deposits.
If a user doesn’t stake his/her $1USD tokens, they won’t receive farming rewards. $1USD staking also gets you $RING rewards to boost the yields obtained.
If a user opts to provide liquidity with his/her $1USD in other protocols (i.e: DEX’s or pooling protocols) the user can only get the fees obtained from those platforms. The revenue will only be that obtained from the aforementioned fees.
The protocol token.
$RING is the official token of One Ring Finance. It’s the tokenized value of the protocol.
There will be three possible ways to acquire $RING:
The first one is by participating in our investing rounds and/or public sale and the $RING will be distributed as described in our official tokenomics.
The second one is by buying $RING directly on exchanges after listing.
And third one: users will be able to earn $RING tokens by staking their $1USD, $RING or $RING/XYZ token LP tokens into the One Ring Protocol. $RING rewards will be used to boost yields for our users guaranteeing juicy %APYs. Users can access bonus rewards paid in $RING by staking aforementioned tokens.
$RING token is also our governance token, $RING holders will be able to vote and decide on where and how the protocol should move forward.
We hope we have been able to explain clearly how the general mechanics of the platform work.
“One Ring to Yield them All…” -Gandalf on the One Ring Protocol