Why RAMM
RAMM is a platform for real yield creation powered by a general and decentralized risk pricing mechanism.
Last updated
RAMM is a platform for real yield creation powered by a general and decentralized risk pricing mechanism.
Last updated
This Documentation explains the fundamentals of the RAMM Protocol. Also, our team and community are available on our community Discord server and Twitter.
You can also go to our RAMMLend docs to view our lending product
RAMM is a yield-unlocking protocol powered by a novel decentralized underwriting mechanism. Using this mechanism, we make any instruments that are inherently non-trivial to gauge risk-reward into passive and protected yield sources with transparent risk-reward profiles as assessed by the managers.
RAMM does this by offering users the infrastructure by which they can permissionlessly spin up their own capital markets or investable strategies, and underwrite & invest & distribute value accordingly. In the process, we unlock new crypto native yield sources and make the most complex strategies investable passively, in an incentive-compatible manner.
RAMM's participants fall into three main categories
(1) Passive Investors or suppliers(Liquidity Providers) who earns higher risk-adjusted yields
(2) Managers to earn amplified yields than those earned by Liquidity Providers for their underwriting work.
(3) Liquidity Utilizers(e.g borrowers, strategists)propose investments and utilize capital at a fair market-priced cost.
Liquidity suppliers will only supply to assets where their risk-adjusted returns are properly gauged. Every investment has a risk-reward profile, which means every investment has a price tag for capital(potential returns i.e interest). A market cannot exist without prices.
RAMM's goal is to place this price tag for all possible assets in a decentralized manner, to create grounds for capital supply to better meet demand, thereby creating new yield sources and investment opportunities for even non-native DeFi users.