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RAMP V2 currently supports Binance Smart Chain and Polygon (Matic Network) for rUSD minting, with more blockchains integrations to be expected in the near future.
Yields and Fees
- rUSD can be minted after users have deposited their assets into the Binance Smart Chain Vaults or Polygon Vaults.
- Users mint rUSD separately based on each asset staked to avoid cross-asset leveraging.
- The maximum amount of rUSD a user can mint off a particular staked asset is capped by the Minimum Collateralization Ratio (MCR).
- Users can choose to mint rUSD at any amounts, as long as the deposited asset values are retained above the Minimum Collateralization Ratio.
- If assets used as collateral experienced material reductions in market value, these assets shall be liquidated to preserve the value of minted rUSD.
- We advise users to fully understand the risks and rewards of using a leveraged protocol as it may magnify both gains and losses for users.
Binance Smart Chain
- Deposit yields are calculated on an APY basis, on the assumption that returns are compounded.
- The deposit yields for collateral assets staked into the protocol are nett of fees, what you see is what you get.
- Please reference the prevailing APY directly within the RAMP V2 app.
- The interest rates applied on the minted rUSD are dynamic, and prevailing interest rates are shown directly within the RAMP V2 app.
- As of 17 Aug 2021, the protocol does not charge any fees on asset deposits or withdrawals.
rUSD liquidity pools are available on Automated Market Makers (AMMs) in the following blockchain networks:
- Binance Smart Chain: PancakeSwap
- Polygon (Matic) Network: QuickSwap
Users can directly swap rUSD for other tokens, such as BTC, ETH, BNB, DOGE or other tokens on the decentralized swap exchanges.
For rUSD to function well as a stablecoin, it is important for rUSD to be stable in value, and is expected to peg at approximately 1:1 to other stablecoins such as USDT, USDC and BUSD within a +/- 2% range.
- If rUSD rises above 1.02 against other stablecoins, we expect this scenario to incentivize more users to stake their assets into RAMP, mint rUSD, and move the peg downwards through an increase in supply.
- An interest rate module is built into the RAMP protocol, primarily as a stability peg mechanism.
- There may be situations where rUSD starts to depeg and goes below 0.98 against other stablecoins, such as an overwhelming increase in rUSD minting (supply increase).
- In such cases, the interest rate module will slowly step up interest rates on open minted rUSD positions. This will encourage a portion of the users to buy back and repay their minted rUSD positions, thereby bringing the rUSD peg back to 1 through supply reduction.
- Where liquidations occur, the liquidated assets are sent to a keeper wallet belonging to the protocol. The assets are converted into rUSD directly if rUSD is equal or less than 1.
- Where rUSD is above 1, the liquidated assets are converted into USDT / USDC / BUSD as treasury funds, to only buyback the outstanding rUSD when it is equal or less than 1.
- Funds left over from liquidation less repaying the rUSD outstanding belongs to the RAMP ecosystem, and shall be used to buyback and burn RAMP tokens.