Lender
Lenders provide stable coins to the market to be borrowed. Lenders will collect payment plus interest and/or collect defaulted collateral after expiry.
  • The lender gives a loan by buying rcTokens from the borrower or a DEX pool (ex. Swapping Dai for rcTokens)
  • They receive rcTokens which represents the right to collect payments (ex. Dai) or forfeited collateral (ex. wBTC) after expiry.
  • After expiry, the lender can use the rcToken to collect payments and interests with Ruler Protocol in the form of the paired token (ex. Dai).

Lending

  • Lender gives a loan by buying rcTokens through the DEX pool
  • Lender receives rcTokens to represent the right to receive payment(s) and interest

Collect Payment & Interest

With rcTokens. A fee will be charged on the collected asset.
After expiry, lender can collect loan payment(s) and interest with rcTokens.

Collect on Default

With rcTokens. A fee will be charged on the collected assets.
If there is a default (the borrower does not payback the loan), the lender will return rcTokens to Ruler Protocol and collect the following assets proportionally with their share of the Ruler Pair:
  • Repayments from borrowers in the pair
  • Collateral defaulted in the pair
Taking Ruler Pair (wBTC, Dai, 12/31/2021, 10000) as an example.
  • 1 wBTC deposited for the pair, 10,000 rTokens minted
  • At expiry, only half of the RR_wBTC_10000_Dai_12_31_2021 are paid back (a default rate of 50%)
  • The pair now has 0.5 wBTC + 5000 Dai in the contract.
  • Each rcToken will be eligible to receive (0.5 wBTC + 5000 Dai) * (1 / 10,000)
Last modified 9mo ago