What is RAMP (RAMP)?

What Is RAMP?

RAMP is a decentralized finance (DeFi) protocol that emerged as a solution to a significant challenge in the cryptocurrency space: the isolation of non-Ethereum users from the burgeoning DeFi sector. Traditionally, DeFi platforms, primarily Ethereum-based, have been inaccessible to users of non-Ethereum tokens. RAMP bridges this gap by enabling these users to stake their tokens on Ethereum-powered platforms, thereby fostering broader DeFi adoption. The protocol's innovative approach allows users to unlock liquidity from staked assets across different blockchains without compromising on the yield generation of these assets.

The core of RAMP's offering revolves around its unique liquidity on/off-ramp design. This design facilitates the conversion of non-Ethereum tokens into collateralized stablecoins (rUSD), which can then be utilized within the Ethereum ecosystem. Simultaneously, Ethereum-based stablecoins can be converted into eUSD for use in RAMP's liquidity pool. This cross-chain liquidity bridge not only enhances the utility of different blockchain assets but also ensures that users continue to earn staking rewards and yield farming opportunities, even after their assets are converted.

It's important to note that RAMP has undergone a significant transformation, rebranding into LeverFi with a new token ticker, LEVER. This rebranding reflects the project's evolution and its focus on delivering innovative leveraged solutions in the DeFi space. The transition from RAMP to LeverFi marks a strategic shift towards a more sustainable and efficient DeFi ecosystem, catering to the evolving needs of the cryptocurrency community.

Resources

Official Documents: https://docs.rampdefi.com/ramp-defi/

Official Website: https://rampdefi.com/

How Does RAMP Work?

RAMP operates on a sophisticated platform designed around three core areas: liquidity on/off-ramp design, collateralized and liquidation design, and a collateralization management score. The liquidity on/off-ramp design is pivotal in enabling the exchange of tokens between different blockchain systems. It allows for the conversion of non-Ethereum standard tokens into rUSD and vice versa, facilitating seamless transactions within the RAMP ecosystem. This design ensures that assets locked for staking on various decentralized systems can be easily traded, providing users with the flexibility to use their funds across multiple blockchains.

The collateralized and liquidation design of RAMP introduces a collateralization assurance mechanism for rUSD, using a minimum collateralization ratio (MCR) of 200 percent. This ratio ensures that the value of rUSD minted is always backed by a sufficient amount of collateral, maintaining the stability and trust in the system. In case the collateralization falls below a certain threshold, RAMP initiates liquidation procedures to maintain the system's integrity and protect users' interests.

Furthermore, the protocol's collateralization management score (CMS) rewards or penalizes users based on their collateralization efforts. This score is calculated across the entire blockchain population connected to the RAMP network, encouraging responsible and efficient use of the platform. The CMS plays a crucial role in maintaining the health and sustainability of the RAMP ecosystem.

What Is RAMP Token?

RAMP is the native token of the RAMP Network. It serves multiple purposes within the ecosystem, acting as a utility token that aligns various activities on the network. One of the key functions of the RAMP token is in governance. As a decentralized platform, RAMP relies on community-based governance, where token holders can participate in decision-making processes, including suggesting and voting on changes to the protocol.

In addition to governance, the RAMP token is used for referral rewards, incentivizing users to bring new participants into the ecosystem. It also plays a significant role in enhancing the efficiency of yield farmers within the RAMP ecosystem through a mechanism known as 'farming power mechanism.' Moreover, the RAMP token supports staking activities, allowing stakers to receive a portion of the rewards from the rPool.

RAMP Rebrand: The Journey From RAMP To LeverFi

In the dynamic world of cryptocurrency, RAMP has embarked on a significant transformation, rebranding itself into LeverFi as it adapts to the changing landscape of 2022. This strategic shift is not just a mere change of name; it represents a fundamental overhaul of the project's vision, utility, and operational framework. The rebranding to LeverFi, with LEVER as the new token ticker, symbolizes a renewed focus on high capital efficiency and the maximization of yield opportunities. This move is aimed at shipping innovative leveraged solutions in the DeFi space, marking a transition from an emissions-heavy product to a more sustainable, low-emissions model that promises to deliver enduring value for lenders, traders, and token holders alike.

Central to this rebranding is a token swap from RAMP to LEVER, proposed at a 1:35 redenomination. This means that for every one RAMP token, users will be able to swap for 35 LEVER tokens. This token redenomination is straightforward, involving no additional token issuances or changes to the token distribution or allocation. The swap can be facilitated through exchange partners and an on-chain swap contract. Alongside the token rebranding, the RAMP team has undergone an internal reorganization, now operating under Galaxia Labs. This entity is set to spearhead the development, growth, and sustainability of multiple utility products, extending beyond DeFi to encompass areas like infrastructure, user tools, NFTs, GameFi, and SocialFi.

This rebranding and strategic redirection represent a holistic evolution of the project. LeverFi aims to address some of the unsolved problems in DeFi, such as TVL under-utilization and the inefficiencies of overcollateralized lending. By matching traders seeking liquidity for leverage with lenders within the platform, LeverFi allows users to maximize the value of their yield-bearing collateral, offering opportunities to go long or short with up to 10x leverage. This innovative approach is designed to deliver value under all market conditions, ensuring that LeverFi remains a robust and adaptable player in the ever-evolving DeFi landscape.