Vision

RAMM is the ultimate hub for real yield.

Why Should Underwriting Be Decentralized?

A more scalable model

As the digital economy grows, the number of assets/investments that need to be properly priced scales proportionally, and It's much harder for a centralized system to underwrite all kinds of assets then a decentralized & permissionless model.

Promotes Better Incentive Alignment

The asymmetric nature of performance-based compensation in traditional banks and asset management introduces a moral hazard problem in which LPs bear significantly more negative consequences of managers’ risk choices. There is limited liability for these originators for defaults and losses. Lazy underwriting at scale can induce sharp credit crunches, and it is the LPs who suffer.

With smart contracts, we can enforce, at a code level, incentives to be aligned with managers and liquidity providers throughout all market and credit cycles.

More Accurate Decisions

Decentralized decision-making aggregates more private information and can elicit more accurate predictions, even more so than the smartest individual in the group.

Why a general risk pricing mechanism?

As a product, users can conveniently be exposed to a diverse set of investments in a single platform, in a set-and-forget manner.

More importantly, we believe a manager's underwriting skills in one domain can carry over to another, as the transferrable skillset here would be making probabilistic financial bets with limited information. Since the system scales with its managers, we believe a general system can help attract a lot of quality managers from multiple domains.

We also believe that general systems become new primitives that allow interesting applications which are not obvious while being built. For example, the system can be used as a decentralized risk management module for deciding whether to invest in long-tail opportunities(i.e maturity mismatch bailouts). Such complex decisions are hard to assess and resolve using existing governance infrastructure.

Every investment requires one to assess its risk vs reward. Our goal is to find the best underwriters. We believe such systems can make capital markets much more efficient.