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Deep dive: RampDeFi, the next big thing?

Photo of: Nathan VDH
by Nathan VDH

Participation in the DeFi and staking ecosystems has experienced explosive growth over the past year, with the combined sectors currently representing more than $50 billion in value.

DeFi’s growth has been driven primarily by the decisive success of Ethereum-based projects such as Aave, Compound and Uniswap, using stable ERC20 parts such as USDC and Dai to generate yield. Digital assets staked on other networks have been left behind, unable to participate in the emerging DeFi ecosystem.

If these players wanted to access DeFi without introducing new capital, they had to cancel and sell their investments to enter the market. This meant foregoing potential capital gains and relying on the rewards of these assets.

Start-up of Singapore RAMPE DeFi is now pioneering an alternative solution, opening up participation in the DeFi ecosystem based on Ethereum – without giving up the future benefits of other staked digital assets. It has attracted investments from Alameda Research, IOST and Blockwater Capital, among others.

RAMP DeFi’s innovative decentralized protocol solution proposes that the capital put at stake on non-Ethereum blockchains can be guaranteed in a new “rUSD” stablecoin issued on Ethereum, acting as a bridge between the non-ERC20 tokens and the Ethereum chain.

By lending/borrowing, initiating stable liquidity and integrating with other DeFi solutions, rUSD holders can either deploy rUSD in opportunities generating higher yields or exchange for USDT/USDC. This creates a transparent activation/deactivation ramp for users with staked capital on other channels to access DeFi without forgoing the potential future gains or rewards of guaranteed digital assets.

How does it work?

For each integrated “X” blockchain, a RAMP staking node and an intelligent contract on blockchain X are set up to manage the assets. Token X is implemented in the RAMP ecosystem to continue to receive blockchain X staking rewards.

A wrapped Token X is then issued and used to guarantee and hit a native stable corner blockchain X, xUSD. xUSD is based on a guarantee ratio similar to MakerDAO.

xUSD can then be exchanged against the ERC20 rUSD stablecoin, using the cross bridge of the on/off ramp. From there, the rUSD can be deployed in yield farming opportunities or exchanged directly against other stable coins using decentralized cash pools.