Ratio Finance introduces liquidations to maintain the system healthy for their customers and to grow into accepting LP tokens.

Introducing Liquidations

Yet, they have only accepted stable-stable pairs to minimize the risk of liquidation. Because USDr is an overcollateralized kind of debt, the TVL of Ratio Finance must always be much more than the amount of USDr in circulation.

Dynamic Risk Management

There is a Collateralization Ratio in place for each Collateralized Debt Position (CDP) available Ratio based on the risk rating of the liquidity pool as determined by the Ratio Risk Ratings (RRR). For example, the USDT-USDC liquidity pool on Saber has rated ‘AA’ according to the RRR, with a Collateralization Ratio of 110%.

This means that a user must deposit $110 in collateral to generate $100 in USDr.

Repay to be Safe

Because of the fluctuating macro-environment, the Collateral Value may fall below the Collateralization Ratio. As a result, a liquidation procedure will be begun to safeguard the protocol and its users from any potential negative consequences.

Ratio Finance encourages customers to use the Collateral Deposited to Debt to regularly check the health of their position.

They provide borrowers with two choices for repaying their debt:

A borrower purchases USDr on the open market and repays on the platform.

The borrower generates more LP tokens and deposits them immediately on the platform.
These strategies enable its consumers to raise their Collateral Debt ratio while avoiding Liquidation.

Partial Liquidation

As previously indicated, in a liquidation event, the Ratio Protocol will often not unwind and liquidate its users’ whole position; rather, only a portion of the collateral liquidates, and the borrower will return to a healthy position.

Furthermore, fees reflect the protocol’s haste to liquidate and unwind the LP position at some expense to account for trading fees and slippage. By making this little modification to the borrower’s position, Ratio’s Liquidation Engine recalibrates the borrower’s position, allowing for a risk-on setting.

Risk Epochs and Full Liquidation

Ratio’s Risk Engine monitors and updates each user’s vault regularly. These tests take place in epochs with durations set by the Ratio DAO.

The Risk Epochs are now 10 minutes long, which implies that debtors’ positions are examined and set for repayment, partial liquidation, or complete liquidation every 10 minutes.

They should be aware that Ratio’s Liquidation Engine, is intended to avoid full liquidations until required.

However, complete liquidations might occur during moments of extreme volatility.

Conclusion

Essentially, the addition of liquidations enhances the health and sustainability of the Ratio Protocol. Serves as a gauge for its users to make risk-averse decisions constantly. It also lets them take volatile pairings as collateral to mint USDr, which is critical. This implies that its customers will soon be able to take advantage of leveraged yield farming for a variety of volatile and non-stable pairings, including sSOL/SOL, RAY/USDC, and mSOL/SOL. They are ecstatic about this option since it opens up a new avenue for Solana customers to obtain access to leveraged return possibilities at risk appetites of their choice!

About Ratio Finance

Ratio Finance is a Collateralized Debt Position protocol on Solana. The platform allows users to leverage their LP and other assets by minting risk-adjusted “USDr” against their collateral. Ratio Finance uniquely calculates the volatility of collateral to keep users’ assets safe.

Website | Twitter 

SOURCE

Medium

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Zebec announced the integration of the Insta-Swap feature, an exclusive feature from Ratio Finance.

Collaboration Highlights

Zebec has cooperated with Ratio Finance once more, with the addition of the successful collaboration back in June 2022.

Ratio Finance is a technique for Collateralized Debt Positions that focuses on risk assessment and mitigation. Ratio Finance lends against LPs and enables customers can deposit USDr into their Solana wallet.

With the addition of Insta-Swap, users can simply swap tokens into appropriate LP holdings, which can then be placed on the Ratio Finance platform for further leverage.

Insta-Swap also offers a variety of alternate yield-bearing postures via its future SDK. The ability of Ratio to instantly deposit into LP tokens and other yield-generating goods has been determined to be seamlessly incorporated into Zebec.

With Insta-Swap, Zebec users are able to:

• Automatically swap any token into yield-bearing LP using Jupiter Swap
• See wallet balance of token to be swap
• See estimated LP from the swap
• See wallet balance of LP tokens before and after swap
• Set slippage tolerance for trades

What this means for Solana

Ratio Finance’s Insta-Swap is made open source via their developer’s SDK. Multisigs and Wallets will be able to leverage their Insta-Swap to easily swap into a variety of yield bearing positions, and will soon be able to mint USDr against them automatically.

They plans to launch additional vaults and positions for users to trade into. All integration partners will benefit from the Ratio Risk Ratings, which allow users to evaluate the risks associated with specific holdings.

Learn more about Ratio Finance’s Insta-Swap tool here https://medium.com/ratio-finance/introducing-insta-swap-f92ffed87dc9

About Zebec

Zebec, a revolutionary DeFi technology that empowers real-time, frictionless, and continuous streams of payments.

Website | Twitter

About Ratio Finance

Ratio Finance is a Collateralized Debt Position protocol on Solana. The platform allows users to leverage their LP and other assets by minting risk-adjusted “USDr” against their collateral. Ratio Finance uniquely calculates the volatility of collateral in order to keep users’ assets safe.

Website | Twitter 

SOURCE

https://medium.com/zebec-protocol/zebec-announces-the-integration-of-insta-swap-426337598892

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Ratio Finance uses Socean Streams for its governance. It is a protocol that allows users to lock assets in safe & secure vaults to mint Ratio’s $USDr stablecoin and utilize $USDr within the Solana ecosystem.

The platform will be allowing users to swap their $RATIO for b180RATIO at a discount. b180RATIO unlocks into $RATIO over 180 days.

b180RATIO is used for all of Ratio Finance’s governance. Using b180RATIO is more beneficial than using pure $RATIO, as it ensures that anyone who wants to participate in Ratio’s governance must have a long-term stake. Holders of b180RATIO will be able to make proposals, ask for grants, list new assets as collateral, request for $RATIO emissions, and more.

Click this https://medium.com/ratio-finance/ratio-finance-governance-8880ca503170 for more details on Ratio’s governance.

• To purchase b180RATIO, go to streams.so/app/streams and look for the b180RATIO auction. The price of b180RATIO will go down over time, but others buying will push the price back up — so be sure to jump in when you see a price you like!
• Connect your wallet and enter the amount of b180RATIO you would like to purchase.

• Click “Confirm”. The b180RATIO should then be in your wallet! You can now use it to participate in Ratio Finance’s governance.

  If you would like to redeem b180RATIO for $RATIO, click “Add a stream”.

• Select b180RATIO and the amount of b180RATIO you would like to unlock.
• Click “Start unlock” and your b180RATIO will start turning into $RATIO right away. You can collect your $RATIO at any time.

The Ratio Finance DAO will periodically offer b180RATIO sales for interested individuals, DAOs, and entities that wish to participate in Ratio Finance’s governance.

About Ratio Finance

Ratio Finance is a Collateralized Debt Position protocol on Solana. The platform allows users to leverage their LP and other assets by minting risk-adjusted “USDr” against their collateral. Ratio Finance uniquely calculates the volatility of collateral in order to keep users’ assets safe.

Website | Twitter 

SOURCE

About Socean

Socean is a fully autonomous, fully transparent algorithmic stake pool on Solana. They are committed to unlocking the value of staked SOL for use in the Solana ecosystem, improving staking returns for our users, and increasing decentralization on the Solana network.

Website ♦ Twitter

SOURCE

https://soceanfinance.medium.com/ratio-finance-is-using-streams-fa518a8d0544

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