Collaterals on Ruler Protocol

Collateral Types

There are three major types of collateral on Ruler.

  • Core

    • Collaterals that have wide-spread recognition in crypto communities, like wBTC and wETH.

    • Collaterals that are important to the protocol like RULER as the governance token of the protocol.

    • Collaterals that are critical strategic partners, like COVER.

  • Norm

    • Collaterals that have some recognition in some crypto communities, like xSUSHI.

    • Collaterals that are from strategic partners, like INV.

  • Innov

    • Collaterals that are from newer projects without wide recognition and unclear borrowing needs.

  • Degen Pool

    • Collaterals with a higher LTV ratio.

Note: each collateral can change its type through a community proposal at any given time, it will take effect in the next loan cycle.

Collateral Delisting Process

Passed REP5-a.

If a collateral is not borrowed against sufficiently, Ruler will delist the collateral the month after. Collaterals can be listed again in the future when the borrowing needs are justified.

Delist criteria:

  • Total borrow amount is less than $70,000.

  • Borrow/Loan ratio is less than 20%, and rewards reduction is not possible. If rewards reduction is possible, it will be executed before delisting.

Exception criteria:

  • Partner is incentivizing the liquidity pool.

  • Collateral liquidity pool has no RULER rewards.

  • Total loaned is expected to be more than 200k.