RAMP is a cross-chain solution that allows users to draw liquidity from staked assets. This protocol has just introduced RAMP liquidity on the Binance Smart Chain using JulSwap and PancakeSwap.
Introduction
Lots of Ethereum native protocols have been making cross-chain moves to the Binance Smart Chain (BSC). This is mainly due to high gas fees and network congestion on the Etherum. As Ethereum growth has slowed, the growth on the BSC has continued to be exponential. While the Ethereum network still boasts nearly 5x more Total Value Locked (TVL) the BSC is quickly closing this gap as ecosystem growth continues. It’s not that the BSC will replace Ethereum, but it offers users an affordable and easy solution. For these exact reasons, we have seen an influx in ETH protocols such as 1Inch, Ren, and RAMP DeFi.
What is RAMP DeFi?
Ramp DeFi is a protocol focused on making lending and yield farming accessible to non-ERC20 holders. The protocol has integrated fERC20 tokens to ease the process of making cross-chain assets. This system allows for more comfortable and cheaper asset provision.
RAMP DeFi proposes that the staked capital of non-ERC20 token can be deposited on their platform in return for a stablecoin “rusd.” This stable coin is backed by RAMP and issued on the Ethereum blockchain. rUSD holders can lend, borrow or exchange rUSD for other stablecoins on the Ethereum network such as USDT or USDC. This allows users to earn multi-yield, both on the Ethereum network and of the Ethereum grid.
With RAMP on the BSC network, the same mechanics are at play. Users will be able to stake their non-BEP20 token to get “rUSD.” This BEP-20 rUSD is compatible with the BSC allowing users to swap for stablecoins. This cross-chain solution allows users to easily bridge their assets to both the Ethereum and BSC networks. Ramp on the BSC network helps reduce Ethereum usage on top of the reduced fees it offers users.
Liquidity On PancakeSwap And JulSwap
RAMP has launched its liquidity pools on Pancakeswap and JulSwap. The RAMP-BUSD liquidity pool launched on Julswap earns both trading fees and JULD tokens. The two teams have created these liquidity incentives to bootstrap initial liquidity and users to both protocols. Currently, RAMP DeFi only offers a cross-chain bridge for their native RAMP token, but they will soon bring the entire protocol to the BSC. It is important to note that liquidity providers on PancakeSwap do not receive additional liquidity incentives, solely the trading fees.
Conclusion
RAMP is a cross-chain solution that allows users to draw liquidity from staked assets. This novel system allow users to earn double yield rewards through staking Proof Of Stake assets (POS). This is the first of its kind in the DeFi ecosystem. In turn, this protocol encourages users to use DeFi applications on both the BSC and Ethereum networks even if they don’t initially have BEP-20 or ERC-20 tokens. Overall, as De-Fi continues to expand cross-chain solutions will be at the heart of the space. The team at RAMP protocol understands this and continues to innovate their protocol to further cater to users.
Source : bsc.news
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