Vaults Update Log

As RAMP is still in its early stage of development, it is necessary for the vaults to be constantly evaluated for their purpose and/or efficiency to ensure that the outcomes are aligned with the objectives of the RAMP platform's development.

Where required, vaults may be substantially adjusted to achieve desired outcomes for platform users.

We understand such changes will likely result in inconveniences for our users, and seek our users' kind understanding on this.

May 2021

29 May 2021
20 May 2021
19 May 2021
15 May 2021
8 May 2021
29 May 2021

5) Reduction of collateralization ratios

Date and Time of Change:

  • 29 May 2021 13:00 UTC

Expected Overall Business Impact:

  • Low

Changes Implemented:

  • Decreasing collateralization ratio for assets.

Reason:

  • On users' requests to allow for higher leverage, which maximizes their outcomes from asset deposits.

Desired Outcome:

  • Allow users to further leverage their asset values through lower collateralization ratios, allowing users to borrow more capital on the same asset base.

Change Timeline:

  • Immediate

Recommended User Action:

  • nil

20 May 2021

4) Increase in performance yield share

Date and Time of Change:

  • 20 May 2021 13:00 UTC

Expected Overall Business Impact:

  • Low

Changes Implemented:

  • Increase in performance yield share applied on deposited assets.

Reason:

  • In line with roadmap and whitepaper.

Desired Outcome:

  • To generate more protocol fees for native token buyback and burn.

Change Timeline:

  • Immediate

Recommended User Action:

  • nil

19 May 2021

3) Shift of RAMP rewards from rUSD-3NRV Vault to rUSD-BUSD FLIP LP Vault

Date and Time of Change:

  • 19 May 2021 13:00 UTC

Expected Overall Business Impact:

  • Medium

Changes Implemented:

  • RAMP rewards from rUSD-3NRV Vault shall be consolidated into the rUSD-BUSD Pancake LP Vault.

  • Nerve rUSD Metapool shall no longer give out rewards by 24 May 2021 13:00 UTC.

Reason:

  • The rUSD Metapool on Nerve is resulting in poor peg stability as the swap curve is too flat.

  • The ability to single side add liquidity into the rUSD Metapool resulted in rewards abuse.

Desired Outcome:

  • Maximizing the efficiency of RAMP rewards for onboarding fiat-backed stablecoin liquidity that allow for low slippage swaps.

Change Timeline:

  • Starting 19 May 2021 13:00 UTC, rewards will be shifted from rUSD-3NRV vault to rUSD-BUSD vault in equal proportions across 5 days ( 100% / 5 = 20% per day).

Recommended User Action:

  • Users are advised to provide double-sided liquidity in rUSD and BUSD on PancakeSwap.

15 May 2021

2) Interest rates activated for all asset vaults

Date and Time of Change:

  • 15 May 2021 13:00 UTC

Expected Overall Business Impact:

  • High

Changes Implemented:

  • Interest rates shall be applied on all vaults, and shall be higher for vaults with high utilization rates.

  • Note: users who deposited assets but did not mint any rUSD will NOT be charged any interest rates. Interest rates are applicable for users who minted rUSD only.

  • Interest rates shall be dynamically raised every 3-6 hours at 1-3% increments until rUSD returns to above 0.98 against fiat-backed stablecoins.

  • Interest rates are paid in rUSD, which will increase rUSD buying pressure when it comes to repayment.

  • rUSD can no longer be single-side added to rUSD Metapool on Nerve.

  • Minting for stablecoin vaults have been removed. Only Repay function is available.

  • An rUSD Savings Vault is under development. Users who buy and stake rUSD into this vault will receive the accrued interest.

Reason:

  • Following the launch of the Minter, it is observed that users are willing to pay a "liquidity discount", which can go up to 10%.

  • While this clearly show that users are starved for liquidity and demand substantially exceeds supply, it also means that rUSD is trading at discount against other fiat-backed stablecoins, which is not aligned with the expectations of a stablecoin.

  • The application of interest rates means that rUSD will continually be available to users who are willing to pay the most for it, thereby ensuring that the platform is meeting demand at the maximized outcome.

Desired Outcome:

  • Given that minting demand substantially exceeds supply, we are maximizing outcomes for the protocol.

  • We expect interest rates to also lend confidence to BUSD / USDT / USDC liquidity providers that peg parity can be restored via stability mechanisms.

Change Timeline:

The below interest rates shall be initiated on 15 May 13:00 UTC.

Interest rates are provided in annual format, but are charged per second.

Note: users who deposited assets but did not mint any rUSD will NOT be charged any interest rates. Interest rates are applicable for users who minted rUSD only.

  • RAMP single asset vault: interest rate starts from 14%

  • CAKE single asset vault: interest rate starts from 6%

  • RAMP-BUSD LP vault: interest rate starts from 4%

  • rUSD-BUSD LP vault: interest rate starts from 100%

  • rUSD-3NRV LP vault: interest rate starts from 100%

  • NRV-BNB LP vault: interest rate starts from 4%

  • INJ-BNB LP vault: interest rate starts from 4%

Recommended User Action:

  • Users are advised to repay the rUSD minted if they do not wish accrue interest payable.

8 May 2021

1) Removal of minting capacity for stablecoin vaults

Date of Change:

  • 8 May 2021

Expected Overall Business Impact:

  • Low

Change Implemented:

  • Minting capacity will be progressively reduced to zero, and collateralization ratio will be progressively increased to 10,000%.

Reason:

  • rUSD-BUSD and rUSD-3NRV vaults are meant to develop deeper liquidity for stablecoin swaps.

  • The rewards given for these vaults are to incentivize the lending of BUSD / USDT / USDC.

  • However it is understood that users may add BUSD, mint rUSD and put the rUSD back into the stable liquidity pools, which earn increased yields for the user, but resulted in an imbalance in rUSD-other stablecoins composition.

  • This imbalance results in higher slippage costs for other users.

  • Allowing minting of rUSD against these two vaults therefore does not align with the objectives of launching these vaults, which are meant to improve liquidity and minimize swap slippages.

Desired Outcome:

  • This is expected to reduce rUSD supply, and therefore rUSD composition in the swap pools, resulting in reduced swap slippages for users.

Change Timeline:

  • 8 May 2021: 600,000 rUSD minting capacity / 600% collateralization ratio

  • 10 May 2021: 500,000 rUSD minting capacity / 700% collaterization ratio

  • 11 May 2021: 400,000 rUSD minting capacity / 800% collateralization ratio

  • 12 May 2021: 300,000 rUSD minting capacity / 900% collateralization ratio

  • 13 May 2021: 200,000 rUSD minting capacity / 1,000% collateralization ratio

  • 14 May 2021: 100,000 rUSD minting capacity / 5,000% collateralization ratio

  • 15 May 2021: 0 rUSD minting capacity / 10,000% collateralization ratio

Recommended User Action:

  • Users are advised to repay the rUSD minted.