Ratio ProtocolPrice

(RATIO)

Ratio Protocol is a decentralized finance (DeFi) platform on the Solana blockchain. It enables users to mint USDr, a risk-adjusted stablecoin, against their yield-bearing collateral within Collateralized Debt Positions (CDPs). The protocol primarily addresses the issue of illiquid, locked-up collateral in DeFi. By allowing users to create debt positions against these assets, Ratio Protocol unlocks liquidity while the collateral continues to earn yield. It also employs unique algorithms to assess collateral volatility and risk, enhancing system safety, guiding user decisions, and mitigating liquidation risks.

The core functionality of Ratio Protocol centers around its Collateralized Debt Position (CDP) mechanism. Users deposit assets, primarily Liquidity Provider (LP) tokens, as collateral into Ratio Vaults to mint USDr tokens. The system ensures stability through over-collateralization, meaning the dollar value of the locked collateral always exceeds the minted USDr. The amount of USDr that can be minted is dynamically determined by the underlying asset's Ratio Risk Rating (RRR), an industry-first approach designed to transparently display collateral risk and empower users with informed decision-making.

RATIO is the native SPL governance token for Ratio Protocol, empowering its holders with significant decision-making power. It is used for crucial governance functions, including whitelisting new accepted collateral types, adjusting oracle price feeds for accurate valuations, modifying the risk algorithms that dictate USDr minting limits against various crypto-assets, and influencing emission rates for different collateral on the platform. Furthermore, RATIO token holders participate in governance votes to determine the allocation of network resources, guiding the protocol's strategic development and evolution.

USDr is the soft-pegged stablecoin of the Ratio Protocol, designed to maintain a value equivalent to the US dollar. It is created by users who lock their digital assets, such as Liquidity Provider (LP) tokens, as collateral within Ratio Vaults. USDr serves as the primary medium for issuing and repaying debt within the protocol's framework. Once minted, users can seamlessly integrate and utilize USDr across the broader Solana ecosystem for various DeFi activities, providing a stable asset derived from their yield-bearing collateral.

Ratio Protocol prioritizes the safety of user assets through robust design principles. It employs proprietary algorithms to thoroughly assess the risk associated with all collateral types, ensuring the protocol's overall safety and solvency. A fundamental safeguard is the over-collateralization model, where the value of locked collateral consistently exceeds the value of minted USDr, significantly reducing default risks. The protocol's whitepaper elaborates on its detailed approach to risk quantification, covering aspects like LP risk, impermanent loss considerations, and precise LP token pricing, all contributing to a secure environment.

The RATIO token has a fixed total supply of 100 million tokens, with an initial circulating supply of 5.9 million. Primarily, RATIO functions as a governance token, enabling its holders to actively participate in the protocol's critical decision-making processes. The governance model is designed for a gradual transition, moving from initial centralized control by the founding team towards complete community and stakeholder control over time. This structure ensures that token holders collectively shape the protocol's future direction, fostering a decentralized and community-driven ecosystem.