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 may 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
rUSD BEP20 Token Contract Address: 0x07663837218a003e66310a01596af4bf4e44623d
Scenario 1: Minting rUSD from multiple assets with different leverages
Assume user owns $10,000 worth of ABC tokens and $10,000 worth of XYZ tokens, of which both have MCR of 500% each.
User can choose to mint $2,000 of rUSD from ABC token (500% collateralized) and $1,000 of rUSD from XYZ tokens (1,000% collateralized).
There is no requirement for users to mint at any specific collateralization ratio, as long as the collateralization ratio is above the MCR.
Scenario 2: Adding on collateral and minting additional rUSD
Following on from scenario 1, user owns $,3000 rUSD. However, user wishes to mint another $3,000 rUSD.
User can first mint additional $1,000 rUSD from his XYZ token holdings. This will max out his individual rUSD minting capacity.
To mint the remaining $2,000 rUSD, user can stake an additional $10,000 worth of either ABC tokens or XYZ tokens as collateral to increase his individual rUSD minting capacity.
Scenario 3: Drop in value of ABC tokens and asset liquidation
Currently, user has minted $2,000 rUSD from $10,000 worth of ABC tokens.
Assume that ABC tokens drop in value of 75%, resulting in the collateral being worth only $2,500.
This means that the collateralization ratio is 2,500/2,000 = 125%, which brings it below the Liquidation Ratio of 130%.
The Keeper monitors asset health and will liquidate the position if it is detected that the collateralization ratio is below the liquidation ratio.
If the user wish to avoid liquidation, he can add on more collateral (i.e. stake more ABC tokens) to maintain a collateralization ratio that is greater than the liquidation ratio.
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.