Introduction

This section breaks down the key product components that power RAMP V2.

Supported Chains

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.

RAMP V2 Core Modules

RAMP V2 operates the following core modules:

1) Collateral Market
2) Minter
3) Governor
4) Bridge
5) Keeper
1) Collateral Market

Collateral Market

  • Users stake their yield generating assets such as RAMP, CAKE, Pancake LP tokens or QuickSwap LP tokens into RAMP V2 Vaults.

  • RAMP V2 Vaults utilize auto-compounding strategies which deploy the staked assets into third-party protocols to generate ultra-high yields for users.

2) Minter

Minter

  • Users can use their staked assets as collateral to mint rUSD from the Minter.

  • Each asset has its own defined Minimum Collateralization Ratio and Max Minting Capacity. These parameters are determined based on each asset's available liquidity and trading volume and is controlled by the Governor.

  • On the individual wallet level, rUSD can be minted using the formula: Max rUSD Mintable For An Asset By A Wallet = Market Value of Asset Staked by Wallet / Minimum Collateralization Ratio

3) Governor

Governor

  • The Governor manages the Minimum Collateralization Ratio and Max Minting Capacity applied on each supportable asset in the protocol.

  • The Governor applies a 10-30% performance fee on asset yields in return for providing the platform's borrowing capacity.

  • The Governor also manages the interest rates applied on minted rUSD positions.

  • Interest rates on rUSD minting start from zero for all assets. Interest rates will only be applied when: (i) rUSD value goes below 1 or (ii) rUSD minting sees high utilization.

  • Interest rates are applied on the asset level.

4) Bridge

Bridge

  • The Bridge supports the cross-chain interoperability of rUSD across different blockchain networks.

  • For example, users can mint rUSD (ERC20) with their Ethereum-based assets, and swap it effortlessly into rUSD (BEP20) on the Binance Smart Chain.

  • Assets staked on the Ethereum network still continue to generate yield on Ethereum, even while the rUSD (BEP20) sits in a DeFi protocol on Binance Smart Chain to generate an additional yield stream.

  • The Bridge is expected to support multiple liquidity hubs in the future, including on Polkadot and other DeFi ecosystems.

5) Keeper

Keeper

  • The Keeper oversees collateral value maintenance within the protocol.

  • Assets are liquidated by the Keeper if the collateralized position falls below the Liquidation Ratio.

  • Users may add on more collateral to maintain the collateralized position above the Liquidation Ratio, or simply repay the rUSD minted to redeem the underlying assets and avoid liquidation.

  • The Keeper shall repurchase and burn the equivalent rUSD value using the liquidated assets when rUSD is less than or equal to 1.

Glossary of Terms

  • Deposit: Action of depositing collateral assets into the RAMP protocol.

  • Withdraw: Action of withdrawal collateral assets from the RAMP protocol.

  • Mint: Action of borrowing rUSD using the deposited assets as collateral.

  • Repay: Action of repaying the borrowed rUSD (along with interest, if applicable).

  • Max Mint Capacity: The maximum rUSD that is mintable for any given asset, calculated based on the asset's liquidity and trading volume.

  • Minimum Collateralization Ratio: The predefined minimum collateralization ratio at which assets can be collateralized for rUSD to ensure that rUSD is fully backed. The Minimum Collateralization Ratio is applied on the asset level, subject to the assets' available liquidity and trading volumes.

  • Liquidation Ratio: The predefined ratio where market value of staked assets against rUSD minted is sufficiently low such that the underlying assets are transferred out for liquidation by the protocol. The Liquidation Ratio is applied on the asset level, subject to the assets' available liquidity and trading volumes.

  • TVL: Total Value Locked. Measured by the gross market value of assets deposited into the protocol.

  • TVU: Total Value Unlocked. Measured by the volume of rUSD minted.