On January 30th, AlphaGrowth announced that Compound would be partnering with Circle to make cUSDC the defacto stablecoin for Ronin.
We have Two Objectives:
- Increase the depth of Supply-side Liquidity on Ronin.
- Provide an Interest-Bearing Stablecoin for Ronin Developers to build in-game savings accounts for their users.
Ronin has published an article on Growing DeFi, revealing that Ronin is anticipating a DeFi Renaissance. Compound has the opportunity to design this ecosystem from the ground up – starting with cUSDC.
Compound x Chainlink:
Compound is partnering with Chainlink CCIP to enable users to bridge USDC, cUSDC and COMP onto Ronin. Fees on transfers will be accumulated by the Reservoir DAO Multisig, and then granted to Compound DAO once the necessary DUNA structure is established.
Here are a few of the DeFi opportunities Users can look forward to on Ronin:
1. Bridging USDC
We will partner with Biconomy to create a flow which automatically deposits bridged USDC as supply onto Compound. Supply deposits create a reservoir of receipt tokens, which can then be integrated vertically across the entire DeFi Ecosystem as cUSDC.
2. Bridging cUSDC & COMP
The next step is to design strategies for incentivized DEX Liquidity for cUSDC pairs, and deepen COMP liquidity on Ronin:
- Compound Users earn more yield by bridging cUSDC from Mainnet without withdrawing Supply from mainnet markets.
- Users will also be able to bridge their COMP holdings (or market buy), and bridge over to Ronin as well.
After assets are transferred cross-chain, Biconomy can balance those holdings into cUSDC / COMP LP, and Users will be able to farm RON incentives on Katana.
3. Hooks on Katana
With Univ4 Hooks, you can be out of range, and still be earning on your underlying assets.
The image below demonstrates a v4 Hook, within a Univ3 style range of Concentrated Liquidity:
- Price exists within an Active Range.
- LPs in that active range earn fees.
- LPs who are providing liquidity outside of that range will automatically have their assets supplied on Compound.
- As price moves, Supply is either deposited or withdrawn, depending on the needs of the Active Range.
The cUSDC in a cUSDC / RON LP will earn supply yield during the entire range because it is a receipt asset. But, when Compound deploys a RON market, the “Out of Range” RON inside of the LP can also be supplied, making the LP productive even when price moves in unexpected directions.
Speaking of earning from LPs, Ronin Blitz! is now live, and offering incentives on pairs like:
- AXS / wRON
- wETH / wRON
- USDC / wRON
We’re looking forward to an incentivized v4 cUSDC / wRON pool on Katana.
4. Game Integration
Once Infrastructure and Liquidity have been resolved, we can begin to focus on partnership integrations with game developers. Compound will provide access to yield-bearing savings accounts which allow gamers to save in Dollars, or access structured leverage products, directly through an in-game experience on Ronin.
Stay tuned for deeper discussions on integrating DeFi into Game Design, the Evolution of Katana DEX, and other powerful collaborations!
Want to start earning today?
A Merkl Campaign is live on Ronin, and currently offering 30% APR on wETH Supply. Bridge your ETH over to Ronin, and Lend on Compound.
