RAMP USD60M Liquidity Incentive Program — What You Need To Know!

This post was originally published on Ramp Finance

RAMP DEFI

Oct 26 · 5 min read

Background

The RAMP collateralized stablecoin lending protocol was launched in April 2021, allowing users to deposit assets at high APYs while borrowing against these assets in the form of rUSD, a stablecoin, at the same time.

From April to October this year, we have been actively developing the RAMP platform in rapid feedback iterations together with the RAMP community. This period, which acts as the “MVP Product Feedback Period”, was an important development phase for RAMP in our quest to build the best collateralized stablecoin lending platform that helps users achieve the maximum benefit through leveraging their crypto assets.

While other collateralized stablecoin lending protocols give little to no yield on users’ collateral deposits, RAMP is the leading platform that gives users highly attractive yields, up to over 50% on their collateral.

This means that users’ collaterals continue to earn high yields for users even as users borrow rUSD from the protocol at low interest rates.

The product feedback phase has allowed RAMP to further define its use cases, features and most importantly, understand user expectations, which we believe will eventually make RAMP the leader in collateralized stablecoin lending once user adoption and awareness is scaled up.

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Goals and Objectives

We are excited to share that RAMP is now ready to undertake its first phase of scaling TVL growth and user adoption through the RAMP Liquidity Incentive Program.

The RAMP Liquidity Incentive Program focuses on:

(i) incentivizing users to borrow the rUSD stablecoin after depositing collateral; and

(ii) stabilizing the rUSD peg to other USD-backed stablecoins.

The relationship between RAMP and rUSD is symbiotic.

The more assets deposited into RAMP and the more rUSD minted, the more fees generated for the protocol. The fees are then used to repurchase RAMP and remove RAMP from circulation. The generation of sufficient protocol fees is expected to make RAMP deflationary.

With this incentive program, we hope to onboard, at scale, new DeFi users who wish to maximize the full value of their crypto-asset ownership, while improving RAMP tokenomics in the process.

Liquidity Incentive Program Overview

200,000,000 RAMP tokens in total are allocated to the Liquidity Incentive Program, divided as follow:

  • rUSD Borrowing Program: 150,000,000 RAMP
  • rUSD Stability Program: 50,000,000 RAMP

The RAMP incentives in each of the three programs are evenly shared between the following five blockchain networks: (1) Binance Smart Chain; (2) Polygon; (3) Ethereum; (4) Solana; and (5) Polkadot.

As the most developed blockchain ecosystem, Binance Smart Chain shall be the first blockchain to start receiving liquidity incentives.

The liquidity incentives for the other blockchains — Polygon, Ethereum, Solana and Polkadot will be activated once the platform development is ready.

Liquidity incentives for Binance Smart Chain are expected to begin in November 2021. The actual start date shall be announced one week in advance.

Liquidity Incentives For Binance Smart Chain (BSC)

(A) rUSD Borrowing Program

30,000,000 RAMP are allocated for rUSD borrowing taking place on Binance Smart Chain.

RAMP tokens will be distributed in accordance with the schedule below across a period of 23 months:

  • 3,000,000 RAMP per month shared between rUSD borrowers for the first month (incentive period: 1 month);
  • 2,250,000 RAMP per month shared between rUSD borrowers from the 2nd to 4th month (incentive period: 3 months);
  • 1,500,000 RAMP per month shared between rUSD borrowers from the 5th to 12th month (incentive period: 8 months); and
  • 750,000 RAMP per month shared between rUSD borrowers from the 13th to the 23rd month (incentive period: 11 months).

Note: A vesting schedule will be applied on rewards claiming, more information will be shared at program commencement.

(B) rUSD Stability Program

10,000,000 RAMP are allocated towards helping rUSD achieve stability against other USD-backed stablecoins.

As part of ecosystem adaptation, the incentivization of rUSD stability is expected to take place differently for each blockchain network. For example, on Binance Smart Chain, PancakeSwap is the primary rUSD liquidity venue due to its ecosystem dominance and its high concentration of yield farmers. On Ethereum, in contrast, Curve may be more effective and will require the incentivization to be done with a different format.

For Binance Smart Chain, the rUSD Stability Program focuses on a mutually beneficial collaboration with PancakeSwap, where we focus on growing rUSD trading volumes and deeper liquidity in exchange for higher CAKE farming rewards for rUSD LPs, which will in return, improve rUSD stability.

The rUSD Stability Program for BSC comprises of the following:

  • 4,000,000 RAMP to be used for monthly rUSD trading competitions, with prizes of 200,000 RAMP per month over a period of 20 months.
  • rUSD Trading Competitions are run every month and rewards users who are active rUSD traders. 200,000 RAMP per month shall be shared between active rUSD traders in the following format:

1st place: 30,000 RAMP

2nd place: 20,000 RAMP

3rd place: 10,000 RAMP

4th-10th place: equally split 40,000 RAMP

11th-30th place: equally split 50,000 RAMP

31st-100th place: equally split 50,000 RAMP

Rewards are claimable via smart contract 14 days after the end of each trading competition.

  • 6,000,000 RAMP set aside for Pancake Syrup Pools to boost farming rewards where required (this may not be utilized if trading volumes are healthy).

Join the RAMP Community

Backed by world-class investors, RAMP DEFI is an optimized lending platform that aims to give users the highest deposit yields and lowest borrowing fees on collateral assets within Binance Smart Chain and Polygon.

Using the RAMP solution, users with staked assets can continue to receive staking rewards, retain capital appreciation potential on their staked portfolio, and unlock liquid capital to invest in new opportunities at the same time.

Users can access the RAMP token on:

Binance | FTX (Futures) | PancakeSwap | Uniswap | Gate.io | MXC | Bittrex

If you are interested to participate in our community and receive timely updates from the following official channels:

Twitter | Telegram | LinkedIn | Discord | Medium | Reddit

For partnerships, media, or other collaboration opportunities, please email [email protected]

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