Ruler Borrowing Pool Launch — TRIBE

2 min readApr 9, 2021

Overview

In roughly 48 hrs Ruler Protocol will launch an experimental “borrowing” pool. This pool will allow the user to borrow $TRIBE token(s), using $DAI as collateral. There is no risk of liquidation, but be sure to repay your loan before expiry. This will still consist of borrowers, lenders and liquidity providers.

Borrower

You can borrow 1 $TRIBE for every 4 $DAI locked as collateral. For example, a user could borrow 1000 $TRIBE tokens by locking 4000 $DAI as collateral.

User enters the number of $TRIBE tokens they would like to borrow. Then they would agree to the displayed number of $DAI required as collateral. Be sure to repay your debt before expiry if you want to retrieve your collateral.

Lender

You can lend by purchasing rcToken using $TRIBE tokens. Each rcToken represents a promise to collect 1 $TRIBE after expiry by returning their rcToken.

Liquidity Provider

Liquidity providers will supply the Sushiswap pool with 50% rcToken and 50% $TRIBE token in exchange for a Sushiswap liquidity provider token (SLP), which can be staked on the farms page of the app for rewards.

The LP farming pool will be incentivized with 50 $RULER tokens per week.

Technical Info

This pool will allow a user to deposit $DAI to mint rcToken and rrTokens at a mint ratio of 0.25 where each rrToken token requires the user to pay back 1 $TRIBE by expiration. The rcTokens will be traded in a Sushiswap pool paired with $TRIBE tokens.

A user deposits 4000 $DAI in exchange for 1000 rrTokens and 1000 rcTokens
The user would use the borrow option to sell the 1000 rcTokens into the 50/50 rcToken/TRIBE Sushiswap pool
This will allow user to receive $TRIBE as the loan
The user is free to do whatever they would like with the $TRIBE
The user must pay back the 1000 $TRIBE prior to expiration to get their 4000 $DAI back.

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We hope to provide similar borrowing pools for other tokens in the future. Please give us feedback about this pool and tell us which other tokens you think would be suitable for this pool in the future.