While innovative, decentralized finance (DeFi) is still risky. Many investors are not aware of the collateral risks of yield farming, providing liquidity, or staking on DeFi platforms. Furthermore, there are glaring capital inefficiencies in popular DeFi applications—such as arbitrary over-collateralization requirements, slow settlement times, and a lack of composability with other DeFi protocols. 

Traditional elements of legacy financial systems—such as risk management, modern-portfolio theory, and consumer protection—have yet to be properly integrated into DeFi platforms. The Ratio Finance team, which is composed of both TradFi and DeFi experts, is working to address these challenges and aims to create the most capital-efficient DeFi protocol to date. 

De-risking DeFi

The Ratio platform helps any investor visualize the risks that they are taking when entering a certain LP position, which will help onboard traditional hedge funds and institutional investors into the crypto space. Users can use their existing LP to take out loans while still gaining yield, and subsequent yield can be used to pay back debt. 

The appropriate size of the loan from each respective LP position is determined by the real-time risk of the collateral. By utilizing traditional financial modeling, Ratio is melding Defi and TradFi concepts for collateral analysis

$RATIO

At the heart of all of Ratio Finance’s services is its protocol-owned risk management. 

The ways that the platform assesses the risk of assets, the oracles that it uses for price feeds, and the collateral that it can accept are all determined by $RATIO governance. Unlike the 2008 financial crisis—where collateral debt obligations (CDOs) were rated highly by crediting rating agencies relying mostly on guarantees rather than the quality of the underlying collateral—the ways that the Ratio Finance protocol mitigates risk are protocol-owned and governed. 

By participating in $RATIO governance, committed community members help vote on and improve on what will become a bedrock of DeFi for Solana and beyond.

Tokenomics

The chart above does not yet reflect the sale of 5 million tokens sold to an affiliate of Republic.

Emissions schedule

Setting a new standard

Risk management, CDPs, integration & more

Ratio Finance combines a beautiful and intuitive interface with powerful and innovative DeFi features. Users can leverage their assets by creating collateralized debt positions, as well as track the health of their portfolio and compare the risks of providing liquidity to various yield farms.

Ratio Finance innovations

1. Applications of traditional financial risk management for DeFi
2. Collateralized Debt Positions that accept yield-bearing LP as collateral
3. Auto liquidation and yield aggregation powered by Solana’s lightning-fast settlement times
4. Direct integration into centralized exchanges, protocols and AMMs for risk management

The value of DeFi has exploded from under $1B in 2019 to over $236B in 2021. While impressive, this is paltry in comparison to the $22T worth of the global financial system. There are numerous capital inefficiencies in traditional finance that distributed ledger technology addresses with innovations—such as on-chain settlement, noncustodial interactions with advanced financial institutions and markets, and novel financial derivatives.

In order for institutions to trust and utilize the innovations of decentralized finance, they must first understand the risks associated with their use. This is where Ratio Finance shines: creating novel financial instruments applying familiar methodologies and risk quantification to DeFi applications.

Despite only forming in Q2 of 2021, Ratio Finance has achieved remarkable success in a short period of time. This includes the onboarding of well-known investors, premier traditional finance talent from big 4 firms, several partnerships, and the release of the Ratio Finance testnet. 

Ratio Finance has also partnered with major institutions such as Republic Labs to create novel financial products and services pertaining to risk management.

The vision of Ratio Finance is to create a protocol-owned and governed platform that backs the financial system of tomorrow.

As more novel and traditional assets become available on-chain, a global, democratic system is needed to address the risk of using such assets as collateral in DeFi lending or trading platforms. The Ratio Platform will analyze on-chain collateral and allow users to create novel financial instruments. Ratio Finance expects the $RATIO token to create equitable governance around risk assessment and the platform to become a key component of open finance.

Statements contained on this page are based on current expectations, estimates, projections, opinions and beliefs of the Phi Ventures Limited., a British Virgin Islands business company with limited liability incorporated (the “Issuer”) as of the date hereof unless stated otherwise. Such statements involve known and unknown risks and uncertainties, and undue reliance should not be placed thereon. Neither the Issuer nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained herein should be relied upon as a promise or representation as to past or future performance. Certain information contained herein constitutes “forward-looking statements,” which can be identified by the use of terms such as “may,” “will,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “projects,” “future,” “targets,” “intends,” “plans,” “believes,” “estimates” (or the negatives thereof) or other variations thereon or comparable terminology.  Forward looking statements are subject to a number of risks and uncertainties, some of which are beyond the control of the Issuer. including, among other things, the risks listed in the private placement memorandum. 

Actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements.  Additional risks of which the Issuer is not currently aware also could cause actual results to differ. In light of these risks, uncertainties and assumptions, prospective investors should not place undue reliance on any forward-looking statements. The forward-looking events discussed in herein may not occur.  The Issuer undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Certain projections herein, including projected adoption of the RATIO Token and Ratio platform, set forth herein contain projections, assumptions and expectations with respect to the performance of the RATIO Token and Ratio platform. These projections and hypothetical returns have been prepared and are set out for illustrative purposes only, and do not constitute forecasts.

They have been prepared based on the Issuer’s current view in relation to future events and various assumptions and estimations, including estimates and assumptions with respect to events that have not occurred, any of which may prove incorrect.  While the projections are based on assumptions and estimations that the Issuer believes are reasonable under the circumstances, they are subject to uncertainties. None of the Issuer nor its affiliates or any of their respective directors, officers, employees, partners, shareholders, advisers and agents of any the foregoing makes any assurance, representation or warranty as to the accuracy of such hypothetical illustrations. Nothing contained in therein may be relied upon as a guarantee, promise or forecast or a representation as to the future. A broad range of risk factors could cause the RATIO Token or Ratio platform to fail to meet its objectives, including those described in the risk factor section in the applicable private placement memorandum. Certain pages may be hosted by Republic Core LLC, a technology provider within the Republic Ecosystem. Republic Core LLC is neither a broker dealer, funding portal nor an investment adviser. REPUBLIC CORE HAS NO RESPONSIBILITY FOR THE ACCURACY AND COMPLETENESS OF ANY INFORMATION RECEIVED FROM THE ISSUER, THE RATIO TEAM, THEIR USERS, OR OTHER THIRD PARTIES.

This notice should not be construed as investment advice or any recommendation as to an investment or other strategy by Republic Core LLC (“Republic Core”) or Republic Crypto LLC d/b/a Republic Advisory Services (“Republic Advisory Services”) or any of their affiliates. Republic Core is being compensated $250,000 in cash and Republic Advisory Services is being compensated $250,000 worth of tokens, or 500,000 tokens (calculated at a price of $0.50 per token). Neither Republic Core nor Republic Advisory Services nor any of their affiliates has independently verified any of the information provided or makes any assurances as to the completeness, accuracy or reliability of any such information provided by Phi Ventures Limited and Ohm Ventures Foundation. This web page may contain external links to third-party content (content hosted on sites unaffiliated with Republic Core or Republic Advisory Services), and neither Republic Core nor Republic Advisory Services nor any of their affiliates makes any representations whatsoever regarding any third-party content/sites that may be accessible directly or indirectly from this post. Linking to any such third-party sites in no way implies or constitutes an endorsement or affiliation of any kind between Republic Core or Republic Advisory Services (or any of its affiliates) and any third-party. Republic Core and Republic Advisory Services are subsidiaries within a family of companies owned by OpenDeal Inc. (together sometimes referred to as "Republic"). Republic and its affiliates do not provide tax, accounting or legal advice — all recipients are advised to consult with their own advisers.

Neither (i) Fibonacci Ventures Inc., a Panama corporation and the Company’s ultimate parent company, nor (ii) Ohm Ventures Foundation, a Panama foundation, is the issuer of the RATIO Tokens and is not guaranteeing the RATIO Tokens any offering. To the extent permitted by applicable law, purchasers waive any right to bring any action against Fibonacci Ventures Inc. or Ohm Ventures Foundation related to any matter involving an offering or the issuance of securities.

The following affiliates of Republic Core hold rights to RATIO Tokens pursuant to their RCapital SPV XII, a series of Republic Capital Master Fund, LP and R/Crypto Fund I, both of which are entities affiliated with Republic, have purchased 5,000,000 Ratio Tokens in the aggregate from the Company in private placements.