Participation in the DeFi and staking ecosystems has seen explosive growth over the last year, with the combined sectors currently accounting for over $50 billion in value.
DeFi growth was predominantly fueled by the breakthrough success of Ethereum-based projects such as Aave, Compound, and Uniswap, utilizing ERC20 stablecoins like USDC and Dai to generate yield. Digital assets staked on other networks were left behind, unable to participate in the emerging DeFi ecosystem.
If those stakers wanted to access DeFi without introducing new capital, they needed to unstake and sell their investments to enter the market. That meant giving up on potential capital gains and staking rewards from those assets.
Singapore startup RAMP DeFi is now pioneering an alternative solution, opening up participation in the Ethereum-based DeFi ecosystem – without giving up the future benefits of other staked digital assets. It has attracted investment from Alameda Research, IOST, and Blockwater Capital, among others.
A Cross-Chain Liquidity On/Off Ramp
RAMP DeFi’s innovative decentralized protocol solution proposes that capital staked on non-Ethereum blockchains can be collateralized into a new stablecoin “rUSD” issued on Ethereum, acting as a bridge between non-ERC20 tokens and the Ethereum chain.
By lending/borrowing, bootstrapping stablecoin liquidity, and integrating with other DeFi solutions, rUSD holders can either deploy rUSD into higher yield generating opportunities or swap into USDT/USDC. This creates a seamless on/off ramp for users with staked capital on other chains to access DeFi without giving up future potential gains or rewards from the collateralized digital assets.
How Does It Work?
For each blockchain “X” integrated, a RAMP staking node and smart contract on blockchain X are set up to manage the assets. Token X is staked in the RAMP ecosystem to continue to receive blockchain X staking rewards.
A Wrapped Token X is then issued and used to collateralize…