RAMP DeFi, a decentralized finance solution, took to its Twitter handle to announce the strategic alliance between RAMP DeFi, Injective Protocol, a Binance backed centralized exchange, and TomoChain, a scalable blockchain-powered company. RAMP DeFi, elaborated further through a blog and mentioned that the trio’s synergy seeks to launch cross-chain staking derivatives. This development opens a new dimension of trading staking derivatives across multiple layer one protocols to the users.
According to the blog, RAMP DeFi further explained about the staking derivatives that staking is a system that enables active participation in transaction validation via proof of stake (PoS) blockchain. On this PoS blockchain, the users with a certain cryptocurrency can validate crypto transactions and, in return, are incentivized through staking rewards.
However, issues arise from multiple layer one protocols that complicate the process with staking due to their contrasting ecosystem. For instance, the value associated with Ethereum will not be feasible to enhance the use cases for DeFi on the Cosmos network, states the blog. Thus, this partnership aims to launch a cross-chain staking derivative that will resolve this issue. The rationale behind RAMP’s role is to provide a platform to mine wrapped tokens for PoS based chains that will be further processed by Injective Protocol for trading. It cites two benefits: exploiting new yield farming opportunities and unlocking the Injective’s massive market for trading.
TomoChain, while explaining the whole system of cross-chain staking derivatives, stated that it would bridge the gap by launching the wrapped TomoChain assets received from RAMP DeFi. This will allow the TomoChain users to access their TOMO cryptocurrency through RAMP smart contracts and create wTOMO. Not only the TOMO users will benefit from staking rewards, but they also can use the wTOMO on Injective and participate in trading on Injective too.
Eric Chen, CEO of Injective, mentioned that this strategic collaboration would prove to be a game-changer in the DeFi space and provide unparallel trading opportunities to its users. RAMP will play an instrumental role by providing real passive yield as the Tomo chain community will earn through derivative trading on Injective protocol, stated Lawrence Lim, Project lead of RAMP Defi. Expressing excitement, Long Vuong, TomoChain CEO, said that Injective Protocol and RAMP Defi would gain a competitive advantage through Tomochain’s assets.