The Ring Protocol
Introduction
Ring Protocol is a major breakthrough from our R&D efforts over the past three years. FEW stands for Financial Elastic Wrapping. In short, Ring Protocol is an asset layer that can be applied to any DEFI protocols. We are launching a series of products on top of Ring Protocol.
Both Ring Swap and Ring Launchpad are powered by Ring Protocol. For end users, it may seem like we are just regular AMMs because we have tried to maintain the same user experience familiar to users. However, underneath, we have integrated Ring Protocol on top of them to wrap tokens before interacting with AMMs. This enables many new functions that are not possible in regular AMMs, such as virtual liquidity and leverage trading.
When integrating with the Blast chain, one benefit of this architecture is that we can claim native yield in one step, instead of having to do so from thousands of LP pools. That is why we call ourselves the crazy sister of Blast, due to these seamless features.
How does the Ring protocol compare to a typical market?
To understand how the Ring protocol differs from a traditional exchange, it is helpful to first look at two subjects: how the Automated Market Maker design deviates from traditional central limit order book-based exchanges, and how permissionless systems depart from conventional permissioned systems.
What is Ring Protocol
Ring Protocol is a full set of decentralized finance products to enable the next generation of decentralized finance. It is an effort of research and development for the past three years.
Our Mission Our vision is to build an universal liquidity protocol for maximizing asset utilization. There are billions of idle assets are parked on-chain, while thousands of crypto projects lack liquidity. Ring Protocol is launching a series of products to reshape the DEFI landscape.
Permissionless Systems
The second departure from traditional markets is the permissionless and immutable design of the Ring protocol. These design decisions were inspired by Ethereum's core tenets, and our commitment to the ideals of permissionless access and immutability as indispensable components of a future in which anyone in the world can access financial services without fear of discrimination or counter-party risk.
Permissionless design means that the protocol's services are entirely open for public use, with no ability to selectively restrict who can or cannot use them. Anyone can swap, provide liquidity, or create new markets at will. This is a departure from traditional financial services, which typically restrict access based on geography, wealth status, and age.
The protocol is also immutable, in other words not upgradeable. No party is able to pause the contracts, reverse trade execution, or otherwise change the behavior of the protocol in any way. It is worth noting that Ring Governance has the right (but no obligation) to divert a percentage of swap fees on any pool to a specified address. However, this capability is known to all participants in advance, and to prevent abuse, the percentage is constrained between 10% and 25%.