> For the complete documentation index, see [llms.txt](https://ravelin-finance.gitbook.io/docs.ravelin.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ravelin-finance.gitbook.io/docs.ravelin.finance/introduction.md).

# Introduction

**What is Ravcube** **Finance?**\
Ravcube Finance is the first algorithmic stable token pegged to Cardano on Milkomeda side chain.

The protocol aims to offer the security of battle-tested algorithmic stable token protocols for Cardano users and bring ADA a new utility on Milkomeda side chain. <br>

**Mission**\
The mission of Ravcube is to trigger the growth in Milkomeda utilizing Cardano holders and attract more protocols in to this baby chain with 67m TVL as of April 23, 2022.&#x20;

As you can guess, any growth will bring value to Cardano holders as well as users involved in our ecosystem.

![Data from Defillama](/files/IBfQlq52b6Np9T12Ktxb)

**Market Opportunity for Ravcube**

Cardano is among the biggest coins; however, it has such a low ratio of staked tokens "in Dapps" due to a lack of protocols. Now, before I go any further, I must make it clear that ADA staking ratio is low or looks low because ADA is actually staked by delegation and does not leave users' wallets. So my claim here is not about the ratio of ADA staked by delegation, which actually has a decent ratio (appx 75% as of April, 2022). However, staking by delegation (appx. 5% APR) is not attractive enough for everyone, and it still does not lock enough ADA to create buy pressure.  In other words, there are still many ADA holders who simply keep their tokens in their wallets or on exchanges; and when these users cannot make desired profits, they are likely to create a sell pressure. If Ravcube can offer a safe protocol with better APR, it can trigger a new wave of protocols to appear on Milkomeda and exponentially increase the TVL of ADA, which would translate to a higher ADA price.\
\
Please, check the the image below to see the immense difference of staked tokens (Mcap/TVL) between Cardano and other big chains. Any decrease in Cardano's Mcap/TVL (133.9 as of April 23) will increase the price of Cardano and bring value to both Cardano and Ravcube investors.

![Data from Defillama](/files/XSn0q3SOkgj1L353DTnX)

**Future of Ravcube**

We are aware that Ravcube cannot simply depend on the flow of new users into the protocol to sustain the peg. The mission of Ravcube is to become the spearhead of growth on Milkomeda and integrate with other projects who are attracted by our community. Being an algorithmic asset pegged to ADA, Ravcube tokens can be used for launchpads, liquidity mining without impermanent loss, lending & borrowing and more. Each new use for Ravcube would bring more value to investors by increasing the buy pressure.

The first step taken in this regard is the Ravcube pool on OccamX, which can be considered as an external utility. The pool on Occam has almost 8k APR as of May, 6.&#x20;

![](/files/JM7p9Ap4xDd6TU0rFMNg)

\
**Why do we even need Ravcube when we have ADA?**

The reason is the community and attraction of other protocols into Milkomeda ecosystem.&#x20;

You cannot start a fire without a spark.

Serious protocols are not willing to expand their operations in an empty network. Taking the first step to bring in Cardano holders into this baby chain can easily attract more protocols to start their operation on Milkomeda. This would not be possible if we did not attract users in the first place.

Now imagine we have reached 10,000 Ravcube holders. Other protocols will see the potential to offer their services on Milkomeda. And when they enter this ecosystem, we will be having partnerships with them to give Ravcube  some utility in their protocols such as liquidity mining. This will translate to more buy pressure for Ravcube and better value for our investors.&#x20;

In other words, we are the spark; you are the fire.


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