Elrond to offer Yield Stake Farming for eGLD via RAMP DeFi
We’re excited to announce that stake farming for the Elrond Proof of Stake economy participants will be made available via RAMP DEFI. The startup will offer Elrond Validators the chance to borrow against their staked collateral and use the liquidity to participate in DeFi opportunities.
“Enabling validators to access immediate liquidity for their locked assets is a great way to significantly increase participation to the DeFi ecosystem. We’re excited to create these options for eGLD staking together with RAMP DEFI” said Beniamin Mincu, Elrond CEO.
RAMP DEFI will build a series of smart contracts on the Elrond mainnet which will enable their usecase. When using RAMP DEFI, staking participants will get 1:1 wrapped tokens proportional to their stake. The wrapped tokens are used to collateralize a stable coin pool.
The pool is collateralized at a 2:1 ratio to start with, meaning for $200 USD worth of eGLD tokens, participants can get $100 rUSD. This stable coin is then usable on native Elrond DeFi scenarios, or transferable to Ethereum and usable in DeFi scenarios there.
“Elrond’s unique token model makes it very attractive for long term holding and store of value. The percentage of the circulating eGLD supply, that will be locked for staking, is therefore likely to be high. This is a perfect opportunity for RAMP DEFI to give flexibility to long term eGLD holders.” said Lawrence Lim, RAMP DEFI Co-Founder.
This collaboration is important for the participants in the Elrond PoS economy because it reduces the cost for engaging with new DeFi opportunities, by enabling them to leverage their staked assets. This will have a positive impact on the amount of eGLD locked into staking, which will increase network security and strengthen the token economy.
About Elrond
Elrond is a new blockchain architecture, designed from scratch to bring a 1000-fold cumulative improvement in throughput and execution speed. To achieve this, Elrond introduces two key innovations: a novel Adaptive State Sharding mechanism, and a Secure Proof of Stake (PoS) algorithm, enabling linear scalability with a fast, efficient, and secure consensus mechanism. Thus, Elrond can process upwards of 10,000 transactions per second (TPS), with 5-second latency, and negligible cost, attempting to become the backbone of a permissionless, borderless, globally accessible internet economy.
About RAMP DEFI
RAMP DEFI is a decentralized finance solution that focuses on unlocking liquid capital from staked digital assets. This is achieved by letting users collateralize their staked assets into a stablecoin, which can in turn be used to borrow fiat-equivalent stablecoins such as USDT or USDC. Using the RAMP solution, users can continue to receive staking rewards, retain capital appreciation potential on their staked portfolio, and recycle staked capital into new investment opportunities at the same time. The addressable market for staked assets today is upwards of USD22bn, and RAMP DEFI has a vision of unlocking USD1bn or more in liquid value for users by end 2021.
Beniamin Mincu, Co-founder of MultiversX, is a distinguished tech visionary and one of Europe’s early blockchain pioneers.
