RamenSwap Project Insight: A Community-Driven AMM and DeFi Aggregator

RamenSwap has had great success in its early developments on the Binance Smart Chain. For RamenSwap to see the continued success, it will be essential to create further innovation that provides surplus to the entire ecosystem.

Introduction

Yield Farming, which refers to the process of handing over your crypto assets to a DeFi platform while you earn rewards for doing so, is one of today’s most active decentralized finance sectors. The idea of a holder earning rewards on his idle crypto assets has caught on, and more people are committing their assets for yield farming purposes.

RamenSwap aims to innovate the yield farming experience by introducing its ecosystem featuring a decentralized exchange (DEX) that leverages automated market-making (AMM) technology. On top of this, the team plans to introduce aggregation products in the future. This protocol attempts to innovate on the traditional models of Dapps seen on the Ethereum Network, such as YFI and SushiSwap.

Advantages of RamenSwap

Earn tokens from liquidity incentives

RameSwap has its own native BEP-20 token, RAMEN, which can be staked or spread across Syrup Pools.  Currently, users can provide liquidity in three pairs, RAMEN-BNB, RAMEN-BUSD, and BUSD-BNB to receive additional RAMEN rewards

No Know Your Customer (KYC) policy

Unlike many centralized exchanges, anybody can trade from the hundreds of digital assets with over $100,000,000 in liquidity. Did I mention it’s super simple to use? There will be more information below. This liquidity is currently aggregated from PancakeSwaps liquidity.

Low Fee’s & Quick Transactions

As previously mentioned, RamenSwap runs on BSC, using BEP-20 tokens. BSC has much lower fees than Ethereum, with fees ranging anywhere from $0.04- $0.20 and transactions taking about five seconds on BSC.

RamenSwap

RamenSwap has received incredible growth since its inception in February of this year. This project is a fork of the leading AMM PancakeSwap but they plan to innovate further on their model. Currently, RamenSwap allows users to facilitate token swaps seamlessly. As the DEX AMM function is already live users can earn tons of liquidity incentives through providing FLIP LP tokens to the RamenSwap farms. At the time of writing, users can earn yields ranging from 150% APY to 1500% through providing liquidity. There are only three pairs supported currently, RAMEN-BNB, RAMEN-BUSD, and BUSD-BNB. As the protocol continues to expand I imagine they will incorporate further liquidity pools.

As this project has just launched there are a lot of developments the team is working on. It is important to note the success of this project’s launch with a TVL and market cap of over 2,000,000 within a month of launching. The team has been diligently working and there are a few key developments that we can attribute the project’s initial success to.

Key Developments

While yield optimization is being developed for RamenSwap, the team has created a partnership with Beefy.Finance in the meantime. This partnership allows for RAMEN liquidity providers to maximize yields using Beefy’s vault systems. It is a win-win as it bootstraps more users to both protocols and allows LP’s to receive maximum returns. The Beefy team has also taken this partnership further to benefit Beefy users. Through the RAMEN reward pool, the team has boosted their APY on the BTCB Venus vault by 5%, from 11.10% to 16.71%.

Another noteworthy development is the audit that is currently underway by CertiK, reviewing the RamenSwap code. This audit will check for common vulnerabilities found in smart contracts and further ensure the safety of the project. While audits from renowned parties such as CertiK reduce a large amount of smart contract risk, audits are not the end all be all. Overall, seeing projects take initiative to receive well-known audits reduces smart contract risk drastically but not completely.

Finally, the team has worked to get RAMEN listed on a plethora of centralized exchanges to further user access. Currently, RAMEN is listed on HotBit, CoinTiger, IndoEx, and ProBit. These listings allow for further adoption of RamenSwap and provide more liquidity for the protocol.

Tokenomics

RAMEN follows a very similar tokenomics structure to all AMM’s. The token maintains an unlimited supply and a block reward of 1 RAMEN per block. This model is utilized as it allows these protocols to continually grant users yield incentives and keep liquidity on the platform. As the token has an unlimited supply, it remains crucial that the team incorporates deflationary measures to combat tokens’ minting. While the team does not have a set deflationary mechanism currently in place, the team has acknowledged the importance of one. To combat this inflation, the team has performed a series of five manual token burns. This has resulted in 7,587 burned tokens.

For those who wish to learn more about deflationary measures and how they drive value to holders, check out the following article: Cryptonomics: Deflationary Tokens

Concluding Thoughts

RamenSwap has had great success in its early developments on the Binance Smart Chain. Between their partnership with Beefy, the CertiK audit, and rapidly growing TVL, the project seems to be off to a solid start. In the DeFi space, projects must continue to build at a rapid pace and release quality features. For RamenSwap to see the continued success, it will be essential to create further partnerships and developments that provide a surplus to the entire ecosystem. As the project continues to develop, we can expect to see yield aggregation and DEX aggregation. The team has noted that in Q2 their DEX aggregation engine will be released. Currently, the smart contract is in its beta phase as final changes are made. This will allow users to swap their tokens seamlessly in the most efficient manner. If the team can execute on these future developments, I am sure the protocol’s growth will continue. Overall, the RamenSwap team has taken the traditional AMM model, and they plan to release further innovation to make this protocol unique.

Source : bsc.news