Ratio Finance Raises $2.25 Million to Unlock Liquidity on Solana with Collateralized Debt Positions
AMSTERDAM, NETHERLANDS / ACCESSWIRE / July 16, 2021 / Ratio Finance, a Solana-based DeFi protocol, has announced it has raised $2.25 million in funding from Rarestone Capital Alameda Research, CMS, Divergence Ventures, New Form, Solana, Raydium, and other investors. Ratio Finance was incubated by Rarestone Capital as part of Rarestone Labs, the fund’s DeFi-focused accelerator.
Ratio Finance is helping to unlock and provide additional liquidity to the Solana ecosystem by allowing Solana users to earn yield, take out collateralized loans, and realize the full potential of their capital, all from a user-friendly interface. This is done by leveraging USDr (Ratio USD), the company’s collateralized stablecoin, with the collateralization rates determined by the riskiness of the LP pool. Users will be able to mint USDr by depositing various LP tokens for select Raydium (and other Solana DEX) pools, opening a world of possibilities.
USDr will be freely tradeable and can be used as a stable asset for traders. Following the minting of USDr, users can then choose to allocate USDr to one of Ratio’s vaults and use the yield generated from those vaults to either pay off their debt over time, lock more liquidity, or mint more USDr. To retrieve collateral, users just need to pay back their original loan amount.
Shimon Newman, a core contributor to Ratio Finance, says, ‘We are excited to have the support of our investors and the Solana ecosystem in a shared vision to help bring maximum flexibility to Solana liquidity providers through the use of Collateralized Debt Positions and an innovative risk assessment protocol’. Samiar Tehrani, another core contributor, explains that ‘being able to bring innovative traditional financial risk modelling into DeFi will allow a new influx of users, while mitigating the risk of legacy DeFi users’.
Charles Read, Co-Founder of Rarestone Capital, says, ‘Ratio Finance has the team and vision to be an important part of the Solana ecosystem and overall DeFi movement, especially as more entrants look for easy to use and robust solutions for yield generation.’
Ratio Finance is targeting an IDO later in Q3 to bring its governance token to market. Ratio’s governance token will be used for controlling/adjusting the collateralization and liquidation levels of the USDr vaults. More details will soon follow.
Company: Ratio Finance
Contact: Diana Freeman
SOURCE: Ratio Finance
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