Interview with Ratio Finance
"Mint USDr using LP as collateral, all while collecting yield."
Hey guys. First, thank you for your time. Could you start by introducing Ratio, and talking a bit about your mission?
Hi, nice to speak with you all today. As many of you know, decentralized finance is highly innovative, but risky! Ratio Finance is on a mission to bring the best elements of DeFi into one platform while focusing on user protection and risk assessment. Our platform allows users to create stables (USDr) against their existing LP on Solana, which we redeploy into yield farms. As the yield goes up, you can use the profits to pay off their debt. We also analyze the real-time risk of the underlying LP, allowing us to have risk-adjusted overcollateralization ratios and liquidation prices to protect our users.
Why did you choose to build on Solana, and which of its features makes you more excited about its future?
We chose to build on Solana because we truly believe that it is where the future of not just decentralized finance, but all finance, will live. The speed of transactions and access to a central order book (Serum) allow us to build complex financial models and products without sacrificing user experience and scalability.
Which LP tokens will Ratio work with, initially?
We will be working with the 8 most popular pairs on Raydium to begin with. This could be pushed to include all the lps depending on our risk assessment of the remaining pools.
Our primary purpose is to ensure user flexibility while minimizing their risk.
Why does the world need another stablecoin? Isn't USDC, USDT, DAI, etc. enough?
There are many kinds of stablecoins. USDC and USDT are (supposedly) backed 1:1 with real US dollars. Algorithmic stable coins try to maintain a stable price through automated arbitrage. Collateral based stable coins, like DAI or AlUSD, are actually collateral debt obligations which maintain a unit price of a US dollar through natural market arbitrage incentives. So by creating USDr, our stable coin, we are able to offer Solana users an advanced form of leverage that is simply “priced” as a dollar. USDr is a highly liquid financial instrument which can be used for a variety of purposes, such as paying off loans or reinvesting into vaults or funds. We are excited to be pioneers in collateralized debt positions on Solana.
What is the expected timeline for launch?
We anticipate a testnet launch for serious supporters of Ratio sometime in Q3 of this year.
What other features and products do you plan to launch in the future?
Once we have built the first “brick” in our “money-lego” engine (USDr), we will be creating many integrated ways to use USDr in order to maximize alpha. This includes integration of existing Solana Funds and Vaults, as well as the development of other novel financial products. We also are excited about the cross-chain opportunities that exist in the future as interoperability becomes the norm between Solana and Ethereum/BsC.
For users who want to learn more about you guys, where should they go?
They can follow us at:
Twitter: https://twitter.com/ratiofinance
Telegram: https://t.me/RatioFinanceAnnouncements
Discord: https://discord.gg/5v8AYva8nU
Medium: https://medium.com/@ratiofinance
Website: https://www.ratio.finance
Any parting words?
Decentralized finance has the capability to disrupt every economy. We believe that the future of finance is being built on Solana. We invite you to join us on our mission to unlock the liquidity of Solana-based assets, and de-risk DeFi.