Collateral vault (Ethereum)

On Ethereum

ETH, BTC and Stablecoin holders can deposit their assets on Rings directly from Ethereum mainnet, which are then being bridged via the Sonic Gateway for fast and secure transfer to the Sonic network, where the ETH, BTC and stablecoin deposited will be used to mint scETH, scBTC or scUSD token at a 1:1 ratio.

scAssets minting and Collateral stored in an Ethereum BoringVault

On Sonic

When minting scETH, scBTC or scUSD tokens on Sonic, Rings protocol automatically sends the underlying ETH, BTC and Stablecoins to a Veda boring vault (on Ethereum mainnet) where it will be put to work in farming strategies using protocols like AAVE, Convex, Morpho, and assets like crvUSD, sDAI and more. The yield generated by these farming strategies is continuously auto compounded within the Veda vault to increase APY, and once per epoch all the yield generated by the mainnet Veda vault is swapped in ETH, BTC and stablecoins to mint new scETH, scBTC or scUSD that will be sent to Rings veNFT gauge system and distributed among Sonic dapps based on the gauge vote results every epoch.

scAssets minting on Sonic and Collateral bridged and stored in an Ethereum BoringVault

scAssets can be redeemed after a 3 day cooldown.

Veda takes a 10% performance fee on yield processed by the vault.

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