RAMP — May Community Update

1) A Review of rUSD Following Recent Events

The recent LUNA/UST collapse was highly unfortunate for DeFi investors and users. In light of this event, it is important for users to understand that rUSD, which is overcollateralized, does not contain any of the same risks faced by UST.

rUSD is minted using a wide range of collateral, including BTC, ETH, BNB, CAKE, RAMP and more. In times of stress, and using liquidations where necessary, the RAMP protocol has since inception, ensured that rUSD remains fully collateralized in value.

Going forward, we expect the general environment to remain challenging for collateralized stablecoins, due to (i) increased risks for LPs as a result of highly imbalanced liquidity pools, (ii) constant LP reward emissions in the face of a market contraction and (iii) growing regulatory scrutiny by global governments.

The transition of RAMP to Lever Finance is expected to play a positive role in mitigating these headwinds for the protocol, team and community.

2) Reaffirming Our Commitment to BUIDL

Notwithstanding the broad market fluctuations, Galaxia Labs’ focus on driving financial innovation and building new user-centric products has not changed. Funding has been secured with sufficient project runway to get through the next few Bitcoin halvings, bull and bear markets, and beyond.

Galaxia Labs team reaffirms out commitment to build and develop innovative solutions for the Web3 community, starting with Lever Finance, and will subsequently expand to include Web3 infrastructure, user tools, NFTs, GameFi and SocialFi.

We believe that our unwavering focus to build, even in the midst of market contractions, will eventually bear fruit once macro conditions inevitably recover.

Subject to future market conditions, new products may be launched as token projects or simply as fee-generating utility solutions (non-token), with value to be accrued towards token holders in the form of airdrops, token buybacks, incentives and more.

3) Lever Finance (LeverFi) Product Progress

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As we have received questions around the development progress of LeverFi, we are providing a quick development update for the community.

The main LeverFi Github repository was started in April 2022 following the closure of community voting, and have received steady commits since inception.

Github repositories are set as “Private” and not visible to public users, and will only be set to “Public” after code audits have been completed by reputable auditors.

Indicatively, the LeverFi smart contracts remain on track for a late June code audit with auditors, as provided in the Transition Timeline article.

4) LEVER Token Swap Update

The RAMP to LEVER token swap proposal has been submitted Binance, and is currently under review.

Note that the outcome is still subject to Binance’s evaluation and agreement, and is not yet confirmed as at time of writing this article.

The code for the LEVER token contract and token swap contract have been completed and audited by Peckshield. These audits are publicly available in Github: https://github.com/LeverFi/leverfi-token/tree/main/Audits

The LEVER token is not yet in circulation. Please do not interact with any LEVER tokens until an official announcement has been made via official channels.

5) Exercise Caution

2022 is set to be vastly different from the past two years, and it is important for all of us to recognize that things have changed (again), and many assumptions that were valid up till recently no longer hold true today.

With a tightening macro outlook, increasingly sophisticated phishing attacks/hacks, and the Web3 ecosystem undergoing daily stress tests, we urge our community and users to continually exercise caution and keep risk management at the top of mind when it comes to wallet security, contract interactions and capital deployment. This too shall pass, and a new dawn will rise again.