Ratio Finance is a collateralized debt position protocol on Solana that enables users to deposit yield-bearing stablecoin liquidity provider tokens to mint USDr, a soft-pegged stablecoin. By utilizing real-time risk assessments, Ratio Finance allows depositors to maximize yield while minimizing exposure to volatility and liquidation risks.
Funding
Funding not disclosed
Founders
Product
Problem
Users on Solana lack a straightforward method to leverage their yield-bearing stablecoin liquidity provider (LP) tokens to obtain stablecoin loans. Existing solutions may not adequately assess risk, potentially exposing users to volatility and liquidation risks.
Solution
Ratio Finance is a collateralized debt position (CDP) protocol on Solana that enables users to deposit yield-bearing stablecoin LP tokens and mint USDr, a soft-pegged stablecoin. The protocol employs real-time risk assessments to determine the optimal loan-to-value ratio for each user, maximizing borrowing potential while minimizing liquidation risk. Deposited LP tokens are redeployed into yield farms, allowing users to continue earning yield on their collateral. The protocol charges a minimal 0.5% loan origination fee and a small percentage of the acquired yield on deposited assets, without stability fees or interest rates.
Target Audience
The primary target audience includes DeFi users on Solana who hold yield-bearing stablecoin LP tokens and seek to leverage these assets to obtain stablecoin loans.
Features
- Deposit stablecoin LP tokens from Solana AMMs as collateral.
- Mint USDr, a USD-pegged stablecoin, against deposited collateral.
- Earn yield on deposited LP tokens through redeployment into yield farms.
- Real-time risk ratings provide quantitative and qualitative credit risk assessments.
- Automagical debt repayment using yield earned from deposited assets.
- No stability fees, deposit fees, or interest rates.
- 0.5% loan origination fee and a small percentage of the acquired yield on deposited assets.