Ratio Finance Wiki: Unlocking Decentralized Finance Yield

The Ratio Finance Wiki serves as a comprehensive resource for understanding and navigating the Ratio Finance ecosystem. It’s a community-driven knowledge base that aims to demystify Ratio’s unique approach to decentralized finance (DeFi), particularly focusing on its collateralized debt position (CDP) protocol.

At its core, the Ratio Finance protocol allows users to unlock liquidity from their locked collateral assets, specifically through the issuance of USDr, a stablecoin pegged to the US dollar. The Wiki details this process, explaining how users can deposit their crypto assets, like Solana (SOL) and liquid staking tokens (LSTs), as collateral to mint USDr. A key aspect highlighted is the over-collateralization requirement, where the value of the collateral must exceed the value of USDr minted, mitigating risk for both the protocol and its users.

The Wiki delves into the different collateral types accepted by the protocol, outlining their specific risk parameters, liquidation thresholds, and stability fees. This information is crucial for users when deciding which collateral asset is most suitable for their individual risk tolerance and investment goals. It also clarifies the mechanisms by which the system maintains the USDr peg, including arbitrage opportunities and stabilization mechanisms. The role of the Ratio Token (RATIO) within the ecosystem, particularly its governance function and potential staking rewards, is another prominent section.

Beyond the core CDP protocol, the Wiki covers other key features of the Ratio Finance ecosystem, such as the USDr savings rate, which allows users to earn passive income by simply holding USDr. It also explains the mechanics of liquidations, detailing how positions are liquidated when the collateralization ratio falls below the required threshold. The Wiki emphasizes the importance of actively monitoring collateralization ratios to avoid liquidation and potential losses.

Furthermore, the Wiki serves as a valuable resource for developers and those looking to integrate with the Ratio Finance protocol. It provides information on the available APIs, smart contract addresses, and other technical documentation needed to build on top of the Ratio ecosystem. Clear explanations of how the protocol interacts with other DeFi platforms, such as decentralized exchanges (DEXs) and lending protocols, are also included.

Given the dynamic nature of DeFi, the Ratio Finance Wiki is constantly updated to reflect the latest developments and changes to the protocol. The community is actively encouraged to contribute to the Wiki, ensuring that it remains a relevant and accurate source of information. This collaborative approach fosters a shared understanding of Ratio Finance and promotes its responsible and sustainable growth within the broader DeFi landscape. Understanding the Ratio Finance Wiki empowers users to make informed decisions and actively participate in the protocol’s governance and evolution.