RAMP x Injective | Collateralize INJ-BNB LP Assets Into Liquid Capital While Earning 129% APY
This article was first posted on this site.
Since the early phase of RAMP DEFI, we have been working closely with Injective Protocol to push the frontiers of DeFi innovation.
Today, we are excited to share that the INJ-BNB Vault has been launched on RAMP V2, which allow INJ-BNB asset owners to unlock liquid capital from their farming assets by collateralizing their LP tokens on the RAMP platform, even as they continue to enjoy APY of up to 129%.
In the near future as Injective launches its mainnet leveraged futures trading platform, we are also looking forward to having rUSD being used as trading liquidity on the Injective DEX, which gives rUSD additional utility in addition to being a bridge into fiat-backed liquidity.
1) Partnership Key Points
- RAMP allows users to over-collateralize supported assets such as RAMP tokens, INJ-BNB Pancake LP tokens and other tokens on its platform into rUSD, a stablecoin.
- INJ-BNB liquidity providers can deposit their LP assets into RAMP and mint the rUSD stablecoin on the RAMP protocol. The deposited INJ-BNB LP assets are redeployed back into Pancake to farm, and are compounded back to users in the form of INJ-BNB tokens.
- The minted rUSD can be effortlessly swapped with fiat-backed stablecoins such as BUSD, USDT and USDC with low slippages.
- This means that INJ-BNB users can continue to farm at up to 129% APY (as at time of writing) and unlock liquid capital on these yield farming assets at the same time.
- Slippages can go as low as 0.1% for a $1,000,000 rUSD to BUSD swap order, which essentially gives rUSD liquid transferability against fiat-backed stablecoins.
2) INJ-BNB Vault Parameters
The below provide rUSD minting parameters for this particular asset in the Minter.
- Asset: INJ-BNB FLIP LP token
- Reward Token: INJ-BNB FLIP LP token
- Strategy: The INJ-BNB FLIP LP token deposits are deployed into its PancakeSwap farm. Any CAKE tokens farmed are converted into more INJ-BNB FLIP LP tokens and accrued back into the original deposit pool. Users will automatically have their deposits grow over time.
- Asset APY: 129% as at time of writing
- Minimum Collateralization Ratio: 400%
- Max rUSD Mintable Capacity: 1,000,000 rUSD (will be increased if there are sufficient deposits into RAMP V2)
- Liquidation Ratio: 125%
- Interest Rate: 0%
- Liquidity Fee: 0%
- Deposit Fee: 0%
- Withdrawal Fee: 0%
Above parameters are applicable as at time of writing, and may be adjusted any time subject to market conditions without notice. For the most up-to-date parameters, please visit: https://docs.rampdefi.com/rampdefi/governor-parameters
3) How To Participate In The INJ-BNB Vault on RAMP V2
- Add liquidity using INJ and BNB tokens on PancakeSwap.
- Deposit the INJ-BNB FLIP LP tokens into RAMP V2 at: https://app.rampdefi.com to start earning rewards.
- Mint rUSD against your deposited assets.
- Swap rUSD for BUSD, USDT or USDC on Nerve Finance or PancakeSwap.
About Injective Protocol
Injective Protocol is the first layer-2 decentralized exchange protocol that unlocks the full potential of decentralized derivatives and borderless DeFi. Injective Protocol enables fully decentralized trading without any restrictions, allowing individuals to trade on any derivative market of their choosing. Injective Protocol is backed by a prominent group of stakeholders including Pantera Capital, one of the most renowned venture capital firms in the world, and the leading cryptocurrency exchange, Binance.