TomoChain is looking to provide better-leveraged staking derivatives to users on its platform. Hence, it has forged a strategic partnership with Ramp DeFi and Injective Protocol.
To achieve this, the 3-way partnership, TomoChain inclusive, will drive the development of cross-chain staking among the partners. Ramp DeFi, a DeFi solution platform, took to Twitter to announce this partnership.
The DeFi space has attracted the attention of crypto enthusiasts worldwide. 2020 still holds the tag of being the “year of DeFi.” While DeFi is truly innovative, staking derivatives takes decentralized finance a notch higher. Staking derivatives, simply put, makes it possible for users to earn staking rewards while still holding unrestricted access to unlocking their funds. Interestingly, this is achieved by minting collateralized tokens. Ramp DeFi, one of the partners in the 3-way partnership, proposed the best way to effectively carry out derivative staking.
According to the platform, capital staked by interested investors on non-ERC20 blockchains is first converted into a stablecoin (rUSD). The stablecoin is then issued on the Ethereum blockchain. Users with rUSD can easily stake them in DeFi pools and earn staking rewards. They could also trade rUSD for USDT or USDC, subsequently providing smooth access to staked capital either offchain or onchain. This also allows for users to earn double staking rewards. This is because they can easily withdraw staked capital and restake it in other DeFi protocols while still earning staking rewards.
Cross-Chain Staking Derivatives
Cross-chain staking derivatives across the three partners have the potential to drive the rapid expansion of the DeFi space. Ramp DeFi, for one, will help with the minting of the collateralized tokens (stablecoin). The newly minted tokens will then be moved to Injective Protocol for trading. This means that users will earn staking rewards without losing access to their minted tokens. These tokens can then be restaked on Injective Protocol.
Details of the Partnership
First, users will need to stake TOMO on Ramp smart contracts. The TOMO staked will be converted into wTOMO (wrapped TOMO) by Ramp DeFi. Stakers will, however, continue to earn staking rewards while still being able to restake the minted tokens (wTOMO) on Injective Protocol. On Injective Protocol, users will have different market options, such as creating an unique index or a new yield farming derivative contract. The opportunities embedded in cross-chain staking derivatives are both mindblowing and inexhaustible.
Speaking on the announcement, TomoChain CEO Long Vuong disclosed that he was elated by the 3-way partnership. He added that incorporating TOMO tokens on both Ramp and Injective Protocol will “illustrate the composability and effectiveness of DeFi as a whole.” Vuong, furthermore, added that TomoChain plans to facilitate more such partnerships and that it would help give the DeFi space a strong global footing.
Eric Chen, CEO of Injective, also expressed excitement about the partnership. He said, “This is a monumental contribution to the DeFi sector as a whole and will provide traders with innovative trading opportunities.”
Ramp Project Lead Lawrence Lim pointed out that his entire team is enthusiastic that the platform’s wrapping solution is currently employed by TomoChain. According to Lim, the DeFi platform is dedicated to ensuring the partnership is a success. Interestingly, Ramp DeFi has also partnered with other top layer-one protocols like Tezos and Elrond.
About TomoChain, Ramp DeFi, and Injective Protocol
TomoChain is well known in the blockchain for its entire Tomo suite, consisting of TomoX, TomoP, TomoDEX, TomoZ, etc. The blockchain platform also employs the proof-of-stake (PoS) consensus mechanism and is used by several companies all over the globe. Plans are in place to launch its Zorro upgrade
Ramp DeFi, on the other hand, is known for its DeFi solution majorly focused on unlocking liquidity from staked crypto assets. Interestingly, it is supported by top-notch investors and plans to have unlocked a total of $1 billion by the end of 2021.
Injective Protocol prides itself in being the first-ever Layer 2 DEX protocol to open up the decentralized derivatives. Backed by top-notch stakeholder Pantera Capital, the platform is now the first decentralized forex futures trading platform.
At the time of publication, TOMO was trading at $1.27, with a market cap of $102,102,323 and a 24-hour trading volume of $18,326,910.