Rank #2799
1,111 people like this
ruler protocol  (RULER)

Ruler Protocol (RULER)

$0.335511 -11.1%
0.00000709 BTC -10.8%
0.00010064 ETH -10.6%
1,111 people like this
$0.337564
24H Range
$0.381937
Market Cap $74,665
24 Hour Trading Vol $2,231.97
Fully Diluted Valuation $335,511
Total Value Locked (TVL) $631,758
Fully Diluted Valuation / TVL Ratio 0.53
Market Cap / TVL Ratio 0.12
Circulating Supply 222,540
Total Supply 1,000,000
Max Supply 1,000,000
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RULER
USD
USD
Ruler Protocol (RULER) Price Chart

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1h
24h
7d
14d
30d
1y
-11.1%
-45.5%
-48.7%
-98.6%

RULER Price and Market Stats

RULER Price $0.335511
Market Cap $74,665
Market Cap Dominance 0.00%
Trading Volume $2,231.97
Volume / Market Cap 0.0299
24h Low / 24h High $0.337564 / $0.381937
7d Low / 7d High $0.337564 / $0.613149
Market Cap Rank #2799
All-Time High $2,773.20 -100.0%
Mar 04, 2021 (7 months)
All-Time Low $0.335511 0.0%
Sep 20, 2021 (6 hours)

Ruler Protocol Coin Price & Market Data

Ruler Protocol price today is $0.335511 with a 24-hour trading volume of $2,231.97. RULER price is down -11.1% in the last 24 hours. It has a circulating supply of 220 Thousand RULER coins and a total supply of 1 Million. If you are looking to buy or sell Ruler Protocol, Sushiswap is currently the most active exchange.

What is RULER?

RULER is the governance token for Ruler Protocol. 

 

How to obtain RULER?

You can purchase RULER from Sushiswap.

 

What is Ruler Protocol?

Ruler protocol lending defi crypto

Ruler protocol is a DeFi application focusing on lending/borrowing. Unlike Compound and Aave, loans taken from Ruler are non-liquidatable. 

Ruler Protocol only offers fixed-term loans that are decided beforehand by the team in the form of series. For example, there can be loans expiring at the end of March and loans expiring at the end of June. Users have limited flexibility in choosing the loan terms or end date. 

The loan product has the following features:

  • No liquidations as long as borrowers pay back on time

  • Interest rates determined by supply and demand

  • Fixed-rate loans 

  • Fungible, tradable in the secondary market

Ruler Protocol is created by the same team that created Cover Protocol

 

What are Mint Ratio and Collateral Ratio?

Users can deposit assets to borrow DAI. The mint ratio refers to how much DAI users will receive after depositing one unit of the asset. The collateral ratio is the price of the collateral divided by the amount of DAi borrowed. 

 

ruler protocol defi lending

Using the wBTC as collateral, users can mint 25,000 DAI by depositing one wBTC. The loan will expire on 31/3/2021 with an expected interest rate of 30.75% annualized. 

As the price of wBTC will change every day, the collateral ratio will change accordingly. The borrowing will be halted when the price of wBTC is lower than the mint ratio. 

 

What are Ruler Pairs?

Using the same example, below is the relationship of Ruler Pairs with the collateral. 

  • 1 WBTC = 25,000 rcTokens + 25,000 rrTokens before expiry

Like how Cover Protocol works, users can deposit assets to mint two tokens - Ruler Capital Token (rcToken) and Ruler Repayment Token (rrToken). 

  • 1 rcToken ≈ 1 DAI at expiry

Borrowers will have to sell the rcToken to obtain DAI. 

 

ruler protocol defi lending

There is a yield farming program to incentivize the LP token of rcTokens with DAI to bootstrap liquidity. The price of the rcTokens sold decides the borrowing interest rate. As such, the borrowing interest rate is decided by the market and fixed once it is sold.

The lender will be able to claim 25,000 DAI by depositing 25,000 rcToken to the platform. 

  • 25,000 rrToken + 25,000 DAI ≈ 1 WBTC at expiry

T​​​​​o​ claim back the wBTC, the borrower will have to pay back both rrToken and DAI before the expiry date. There is no liquidation even if the collateral ratio is below 100%. Besides default risk, lenders will have to bear the risk of collateral price falling below the mint ratio. 

In short:

  • rcToken provide the right to collect the loan payment after expiry. 

  • rrToken provide the right to claim back the collateral after the loaned DAI is repaid. 

 

What happens if the borrower chooses to default?

If the borrower does not pay after the expiry date, the collateral is liquidated and split pro-rata among the rcToken holders of that Ruler Pair.

 

What is Credit Default Swap?

A Credit Default Swap is a form of insurance that compensates buyers in the event of a debt default. Lenders can buy Credit Default Swap in Cover Protocol. 

ruler protocol lending


 

What are the fees charged for borrowing?

There are 0.2% fees charged during the repayment of the loans and when lenders collect their payments. 

 

How capital efficient is Ruler Protocol?

Like Cover Protocol, Ruler protocol will have to bootstrap every rcTokens/DAI pool for every series of loans it offers. Due to the isolated nature of those pools and the risk of collateral falling below mint ratio, the borrowing interest rate is high compared to fixed interest rate loans available at Aave. 





 

Ruler Protocol News & Guides

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