Ruler Protocol

Ruler Protocol is a lending platform where users can borrow their preferred cryptocurrency with any other cryptocurrency as collateral[1][2].

It aims to fill the gap by enabling the following:

  • No liquidations as long as borrowers pay back on time

  • Interest rates determined by supply and demand

  • Fixed rate loans at the moment of borrow / lend

  • Fungible loans, tradable anytime & anywhere

The heart of Ruler Protocol is its Ruler Pairs[3][4]

Ruler Pairs

Ruler pairs are at the core of Ruler Protocol. Each pair consists of the following elements:

• Collateral token (ex. wBTC)

• Paired token, the token users have to payback (ex. Dai)

• Expiry, the time users have to pay back (ex. 12/31/2021)

• Mint ratio, the ratio of collateral to paired token. 10,000 mint ratio @ $30,000 collateral price = 300% collateralization ratio

Each Ruler pair issues two fungible tokens (rTokens). rTokens are minted for each staking event by a borrower. The Ruler capital token (rcToken) represents the right to collect the payments of the loan after expiry. The Ruler repayment token (rrToken) represents the obligation to pay back the loan and receive the collateral before expiry. If borrowers don't payback on time, the loan is considered defaulted, and collaterals are forfeited by the borrowers[5].  


RULER has been listed on a number of crypto exchanges, unlike other main cryptocurrencies, it cannot be directly purchased with fiats money. However, users can still easily buy this coin by first buying BTC, ETH, USDT from any large exchanges and then transfer to the exchange that offers to trade this coin[6]

Features of Ruler Protocol

Market Priced

No bonding curve to determine interest rates, instead rates are decided by market demand and supply.

No Liquidations

With Ruler, as long as you follow the rules, you will never have to worry about health factors or having your position liquidated.

Fungible Loans

Obtain ERC-20 loans for the time period you need. Trade your debt sheet anytime.


Ruler Protocol's smart contracts will be deployed, and verified on the Ethereum blockchain, making lending and borrowing entirely censorship resistant and open.


Ruler Protocol will allow you to lend out any asset. Those looking to borrow an asset are able to, as long as there are people willing to lend it out.

No KYC Required

Ruler Protocol allows you to lend and borrow without needing to give up your identity. 

Ruler Protocol Token

Two fungible tokens are minted when a user deposits collateral into Ruler for each Ruler Pair. Based on the collateral type, there will be a mint ratio between the rTokens and the collateral[7].

The two tokens are rcTokens and rrToken.

  1. The rcToken represents the right to collect loan payments (in paired tokens) after expiry.

Borrowers can sell rcTokens for paired tokens to complete the cycle of borrowing (receive paired tokens in the end and deposit collateral to begin with). Each rcToken is eligible to collect 1 paired token when no defaults.

  1. The rrToken represents the obligation to pay paired tokens and get back collateral before expiry.

Each rrToken is eligible to receive a portion of the collateral by paying back 1 paired token.

rTokens can be minted at any time by anyone before the expiry of the Ruler Pair. Naturally, closer to the due date the rcTokens should be worth more (but < 1 paired token) because the rcToken holders will be paid back sooner. However, the value of the collateral is also a factor. As the value of the collateral goes down, rcTokens will also go down in value as the risk of the collateral not being sufficient to cover the obligations increases.   

RULER Token Distribution

Of the 1,000,000 RULER tokens, the distribution among various parties are as follows:

• Community: 750,000 RULER. Among which,

• Liquidity Mining: 300,000 RULER — will be used for liquidity mining across the lifetime of the protocol for providing capital and liquidity.

• Contributor Mining: 140,000 RULER — developers, artists, etc. whoever can improve Ruler Protocol will be rewarded for the work they contribute.

• Treasury: 300,000 RULER — It’s important that there is a DAO treasury upon launch for the greater community to decide how to allocate it.

• Airdrop: 10,000 RULER — It’s critical to build the “right” community of people that share our beliefs and visions. RULER tokens will be claimable by those who have participated in Cover, Yearn ecosystem, and Inverse governance, and Ruler testing programs.

• Founding Team and Advisors: 250,000 RULER — will be rewarded to the founders and advisors. All will follow the same vesting schedule of 2 years. It is critically important to create incentives for the operations team to lead the project after launch and reward them for developing everything for pre-launch. 

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Ruler Protocol

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Edited On

August 10, 2022

Reason for edit:

New Wiki Created 🎉


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