Introducing USDr
Ratio Finance’s public mainnet is around the corner!
In anticipation of our launch, the team at Ratio Finance is exhilarated to highlight what makes our platform so special: USDr.
What is USDr?
USDr is the first-ever algorithmically risk-adjusted Collateralized Debt Position.
Users can mint USDr using stable yield-bearing assets, starting with stablecoin LP from Saber.
USDr exhibits extensive utility in allowing protocols and investors to gain access to a basket of yield-bearing collateral with a dollar facing denomination on their platforms. USDr is further distinguished in that it is uniquely backed by stable assets which have been analyzed for their risk and continue to gain yield for depositors.
USDr for Investors
Take control of your assets.
Because USDr is backed by assets which continue to gain yield, users are effectively getting paid to borrow USDr. As a user, you can take USDr and loan it, convert it, or use it to short another asset.
Imagine high-interest savings accounts that you can borrow against while still collecting interest on your initial deposits… This scenario reflects the functionality enabled by the Ratio Finance platform and USDr. This level of capital efficiency is currently only possible on distributed ledgers, without the need for any middlemen or central authority.
In the coming months, many new forms of yield-bearing collateral will be made available on the Ratio Finance platform. Holders of the Ratio Finance Governance Token, $RATIO, may participate in governance regarding which assets will be chosen as collateral, and in the contingent risk assessment of those assets.
USDr for Protocols
Superior Risk Assessment and Treasury Management.
In essence, protocols that wish to analyze the risk of any collateral can bypass the hassles associated with appropriated risk quantification by accepting USDr as collateral.
As the collateralization of USDr is risk-adjusted, it essentially serves as a proxy for underlying collateralized assets. Backed by assets which are both yield-bearing and overcollateralized through protocol-owned risk management algorithms that adjust in real-time, USDr is an exceptionally outstanding debt instrument. USDr can be used to leverage existing liquidity, to short positions for delta neutral yield farming, and to allow for protocol exposure to a diverse basket of yield-bearing assets.
Because USDr is over-collateralized by a diverse basket of stable assets, it also in effect mitigates the risk that any single stablecoin may possess (as shown in the recent de-pegging of several prominent stablecoins).
Protocol Treasuries that are currently supplying stablecoin liquidity on Saber can leverage existing positions to mint USDr, and then utilize USDr to repurchase protocol liquidity or to collect further rewards within USDr pools (coming soon).
Any team interested in utilizing the Ratio Finance platform or in integrating USDr as a form of collateral, kindly contact team@ratio.finance.
This is just the beginning.
Let us know what makes you excited about USDr!
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Ratio Finance’s mission is to enhance liquidity and De-Risk DeFi, to allow both retail and institutional investors to participate in these novel markets.
Our long-term vision is to be the Risk Rating Agency for all of Decentralized Finance.
