RAMP x Polygon | AMA Recap
We had the opportunity to chat with the Polygon community on 4th August at 8.30 PM (SGT) where our Project Lead, Lawrence Lim, shared more about our initial vision, what we’ve done so far, and where we’re headed. There were many great questions and we really enjoyed our time with the crowd. For those who missed it, here’s the recap!
*The transcript has been edited for clarity.
Q1: Hello, Welcome to the Polygon community 🙂 Could you please tell us a little about yourself?
Ans: My name is Lawrence, the Project Lead for RAMP DEFI. Prior to launching RAMP, I was the International Growth Lead at IOST, a layer 1 blockchain network, overseeing global ecosystem growth for the project. I spent around 2 years with IOST.
And prior to joining IOST, I spent close to 5 years in M&A and asset management in financial institutions including JP Morgan, BNP Paribas and KPMG.
Q2: How RAMP DEFI came into being?
Ans: RAMP DEFI came into being when we discovered that there are limited options for users looking to extract liquidity and value from digital assets that they hold.
It can be during sideways markets where users seek short-term liquidity to execute trade opportunities, or in uptrend markets where they want to leverage up. Either way, users end up having to choose between either selling the asset or finding cash from other channels.
This led to us building RAMP DEFI to address this gap in the market, essentially to give users a new way of extracting liquidity from the assets they hold.
Q3: Great. Can you tell us a bit more about RAMP DEFI and its features?
Ans: For sure. RAMP is a multi-chain DeFi protocol that allows users who are holding assets in staking or yield farming a way to extract liquidity, while still earning yields in the process.
You can mint rUSD, RAMP’s stablecoin, by depositing assets as collateral with RAMP. The assets you have deposited are sent to farm rewards, which means that you continue to earn passive yield even while you are borrowing at the same time. So far, RAMP has been able to let users earn at a faster rate than the interest charged, which means that it’s a positive debt for users.
In addition, rUSD operates cross-chain. rUSD is already live on Polygon and Binance Smart Chain, and users can send rUSD between Polygon and BSC, and use rUSD directly on QuickSwap AND PancakeSwap to swap for any tokens you like. This makes it really simple for users to hold and use rUSD as a stablecoin to trade.
4. Wow, this is awesome! What are the major milestones RAMP DEFI has achieved so far, and what can we expect from you guys in the future?
Ans: Great question. :) A lot of the core infrastructure for the platform is already developed, and technically our smart contracts are delivering on the promised functionalities. We have early traction for TVL on RAMP already, and live on Polygon + BSC, so the next phase for RAMP is to focus on growth and scale up user adoption for our platform.
Some core developments that we are looking to deliver in August is to support a larger variety of assets to mint rUSD on both Polygon and Binance Smart Chain. We’ll also be launching liquidity growth programs to grow rUSD liquidity in the Polygon and BSC ecosystems. Last but not least, we are engaging with marketers and influencers to grow awareness and onboard more users for RAMP.
We expect this growth program to significantly ramp up TVL for RAMP on Polygon and Binance Smart Chain.
We update our roadmap every month for our community, so it’s really transparent and let our community be assured that the RAMP team is highly focused on the development and bringing a unique product to market. You can follow our progress here: https://docs.rampdefi.com/rampdefi/ramp-v2-roadmap
5. Can you tell us a little bit about how your experience was building on Polygon and what are the advantages of RAMP DEFI working with Polygon?
Ans: Definitely! Working with Polygon gives our community a high-speed, low fees trading venue after we migrated RAMP V2’s current Ethereum vaults over to Polygon, a Layer 2 scaling solution for Ethereum.
In particular, we believe that the Polygon side chain will capture most of the transaction volumes for Ethereum due to its ability to scale transactions, with Ethereum itself being used as more of an “asset hub”, rather than an activity center. This has already happened to some degree and we expect the transition to continue, which makes Polygon really the chain to be involved in. For this reason, we have chosen to launch RAMP on Polygon instead of Ethereum.
The launch of RAMP V2 on Polygon represents a significant milestone towards achieving RAMP’s multi-chain vision of blockchain-agnostic, transferable liquidity.
6. What will the future of RAMP DEFI in the decentralised finance revolution look like? Can you talk to us about your roadmap?
Ans: We believe that the future of DeFi is interoperability. Ramp allows users to hold assets on different blockchains, extract the relevant USD value from these assets, and allow this new liquidity to be transferred across chains and used directly to participate in new opportunities.
Right now, Polygon and Binance Smart Chain (BSC) are already supported, and we will connect with Polkadot, Solana, and other chains in the future.
At the same time, we will continue to build and enhance our platform to help crypto users maximize their capital efficiency and integrate with different DeFi protocols for the best yields options for users to participate in.
7. Amazing! Before we conclude, I think there are many in the community who would love to join RAMP DEFI and stay up to date with all the news. What’s the best way to keep in touch?
Ans: Would love to have more Polygon members in our community!
The below are the official channels. We also have an AMA every Wednesday within the official Telegram group to update users.
Telegram Group: https://t.me/rampdefiofficial
TG Announcement: https://t.me/rampdefiannouncement
RAMP V2: head over to https://appv2.rampdefi.com/ to start Ramping :)
Questions from the Community
Q1: What are the functionalities of rUSD Savings Vault? Will the Savings Vault be launched on Polygon Network in the future?
Ans: It’s basically a way for users who want to hold rUSD a place to “park” while not trading on PancakeSwap (for BSC) and earn yield while doing so. Or simply to stake and earn rewards from a stablecoin, which gives a yield of 36% right now, which is very high for the current market :)
We will launch the rUSD Savings Vault in Polygon within August!
Q2: So basically for now we can only deposit the RAMP token in the vault to mint rUSD or has depositing of other tokens like BNB being integrated yet?? And pls how secure is the vault? addition- would love you to integrate into Solana soon. Cheers.
Ans: Great question. A variety of tokens are supported for rUSD minting: RAMP, BNB, CAKE, and LP tokens such as RAMP/BUSD, INJ/BNB, etc. We will be increasing this set of collateral by another 10+ new assets in August.
On Polygon, we already support RAMP, MATIC-ETH, RAMP-ETH, and there will be more in August as well such as MATIC, ETH, etc.
Vaults are secure, we do multiple audits (uploaded to Github), and have no security issues to date. No guarantees as always, but we are happy with how security has been so far :)
3. With RAMP DEFI, users can borrow rUSD using their assets as collateral. How do you deal with cases of complex flash loan attacks? Do you have a security system in place?
Ans: Our code prevents flash loan interactions, and we have an internal keeper system that manages liquidations so that flash loans won’t be required.
4. Does your project have enough funds to run the project and for its development? What is your business model to earn revenue?
Ans: Yes definitely. We have a robust treasury and RAMP has been actively developing this project for over a year now, so we are definitely in it for the long haul. The protocol earns fees from yield sharing and interest fees, which are redirected back to buy back RAMP for the burn.
5. Are users able to mint rUSD to cross-chain swap for a crypto/token before they are listed in centralised exchanges?
Ans: Yes, if the token is available on QuickSwap or PancakeSwap, you can use rUSD directly to purchase. Otherwise, you can swap for say, USDC/BUSD and use USDC/BUSD on another exchange to buy the token.
6. What do you reckon the completed RAMP DEFI product will be like in next couple of months or years to come? To keep investors inspired and excited.
Ans: A much wider range of assets to collateralize, the utility of rUSD effortlessly in multiple blockchain ecosystems, making it the only option where you can mint stablecoin liquidity, use it anywhere while earning yields that are in excess of your borrowing cost at the same time (which means free borrowing, essentially).
7. In a full-blown Bull market, RAMP DEFI will shine as users of the protocol could mint rUSD from their stakes to swap for another crypto/tokens to yield even more profits. But, in a Bear market, users are not likely to mint rUSD and due to lower percentage gains from RAMP yield farms(than its competitors), therefore it might not be a popular platform for staking.
So the question is, what are the perks and how does RAMP entice traders or investors alike to RAMP DEFI and/or using RAMP token in a full-blown Bear market?
Ans: I think it might depend on the user’s strategy and risk appetite. In bear markets, users can consider minting rUSD to participate in short-term trade opportunities, or even to swap to BUSD for fiat out, as an example. Getting liquidity on assets that have decreased in value can give investors more patience and runway for future growth appreciation as well :)
8. How does RAMP smart burn mechanism add value to RAMP DEFI ecosystem? What factors determine the amount of $RAMP token to be burned and will the burn be done monthly or quarterly?
Ans: The smart burn tracks RAMP’s value relative to the market and aims to buy back at more optimal prices, which maximizes the burn effects. We burn RAMP monthly. The factor that determines the amount of RAMP to be burned is subject to protocol fees generation. One thing to note is that the supply of RAMP is capped, and no further minting is possible. This means that each burn will forever reduce the supply by that amount.
9. RAMP has rUSD, can you tell us about rUSD and how rebalancing works within the protocol? Are there instances where an asset gets liquidated?
Ans: Yes, there have been liquidations in the past, and these have been dealt with by the liquidations module successfully. Users keep the rUSD they have minted, and the assets are simply liquidated to replace the amount of rUSD minted.
10. What projects do you consider competitors and what differentiates you from them, if there are any?
Ans: MakerDAO and Unit Protocol are competitors on Ethereum, with RAMP key advantage being that we send the collateral to earn a yield on behalf of users, which allows users to mint with a positive debt position (yield exceeds borrowing costs). In MakerDAO, users pay interest to mint DAI and in Unit Protocol, users pay interest to mint USDP.
Most of the collateralized stablecoin minters result in users paying off interest fees accrued due to debt, leading to net negative returns. In contrast, RAMP allows users to earn while minting debt, leading to net positive returns :)
If there are more questions do drop by our Telegram Group @rampdefiofficial to find out more about RAMP! :)
Thank you @IndCryptoGeek for hosting us today, appreciate it and it is our pleasure to be here to share about RAMP with the Polygon community. Hope it’s been a useful session! 😄
Join the RAMP Community
Backed by world-class investors, RAMP is a multi-chain DeFi protocol that helps asset owners achieve capital efficiency by offering a powerful and comprehensive solution to leverage on users’ crypto-assets. Users can deposit assets for ultra-high yields in auto-compounding vaults, mint collateralized stablecoin against asset deposits to unlock liquid capital and invest in new opportunities at the same time, with the ability to move stablecoin liquidity seamlessly across networks.
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