Ruler Partnership (Revised version)

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After feedback from the Ruler and Pooltogether communities I have decided to make a revised partnership proposal that makes sense for both sides.

No Ruler Pool
Ruler Protocol is implementing some new features in August to combat excessive farming that involves a slashing feature for those who exit early. As a result of this new feature a Ruler pool would not work on Pooltogether. Ruler pool would no longer be part of the partnership plan.

Adding POOL or PPOOL as collateral on Ruler
This will be the focus of my revised proposal. The requirement of being added as a collateral type with Ruler incentives on Ruler Protocol is providing $6,000 USD per week in incentives which is equivalent to 725 POOL per week or 103 POOL per day. This is something we can include in our upcoming distribution changes and I believe the utility it adds will be worth it. Remember that these incentives are going to POOL holders who are using the Ruler protocol so we are not just giving them away. In addition to that Ruler will also incentivize POOL holders deposited on Ruler with 25 xRuler per week.

Pooltogether investing in Ruler
My initial proposal was focussed on Pooltogether purchasing 250K USD in Ruler tokens which is not a necessary part of the proposal. I am not including that as part of this proposal but do think that investment would be a wise choice so I will include a poll below to see if the Pooltogether community is interested in that at a reduced amount.

Summary of Proposal
Reallocate some funds in our upcoming distribution changes to incentivize use of POOL or PPOOL as a collateral type on Ruler protocol. This will add utility to POOL and be the beginning of a great partnership with a great community/team. I am not sure which would be better as collateral between POOL or PPOOL so I’ve included a poll below. If we list PPOOL than POOL holders would be earning more but it would effect the vote as they would be unable to vote with that PPOOL.

Would you like to see POOL added as collateral on Ruler Protocol?
  • Yes
  • No
  • Unsure

0 voters

Which asset should be listed as collateral
  • POOL
  • PPOOL

0 voters

Would you support adding a purchase of 75-100K USDC worth in Ruler tokens in the proposal
  • Yes
  • No
  • Unsure

0 voters

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As of right now Im the sole No vote - and as my past involvement in the DAO has shown I try not to dig my heels in with respect to forming an opinion - but I am missing the point of this.

Is the main goal treasury diversification by purchasing 75-100k of RULER? Is it giving a blessing for Ruler to add POOL or PPOOL as collateral - which they can go and do with out our DAO approval? I feel like if Ruler wants to add PT they should. I feel like this is actually cloaking for the asking for an added sweetener to get us listed as collateral on their platform. If we are paying to play, lets talk to CB or other CEXs (I actually don’t condone this just making a point)

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Hi Dany,

I’d like to address some of your concerns, as they are definitely valid. Ruler by no means requires or is pursuing an investment of 75-100k in $ruler from PT, or in any amount for that matter, to have $POOL or $PPOOL be listed as collateral on Ruler. There are a few different ideas in this proposal, which may be causing some confusion.

First, is the proposal to list $POOL or $PPOOL as collateral on Ruler. Pool users would benefit from this because they would have access to fixed rate, no-liquidation loans against their $POOL or $PPOOL tokens (whichever the community opts for). To have a PT token listed, there is no charge, fee, or investment required. However, Ruler does offer 25 xRuler (increasing in value daily, currently worth 1.3004 $ruler) per week in lender rewards to each collateral type that offers partner rewards of $6k value per week of their community token. So, PT can be listed on Ruler without offering 725 $POOL tokens per week, though they would also not receive 25 xRuler per week. This is not ideal, as these rewards go directly to lenders of the pool who provide liquidity for loans against the collateral. Without incentives to provide liquidity, it is unlikely lenders will be willing to provide liquidity to the $POOL orderbooks, which means borrowers seeking loans against their $POOL may be unable to receive a loan due to a lack of liquidity. Ruler does not receive any of these rewards, and in fact is willing to offer rewards as long as the partner is also.

Secondly, the investment referenced of 75k-100k has nothing to do with the listing of $POOL on Ruler. This is a PT community member identifying Ruler as a potentially rewarding investment for the PT treasury, given their experience with and evaluation of Ruler in terms of risk-reward profitability.
Should the community opt to purchase any amount of $ruler, it should also be aware of their ability to stake $ruler for xRuler and earn more $ruler as rewards (current staking apy is 74.32% at time of posting this). To give you an example of the benefit, a 75k purchase at this exact moment would net 3117.43 $Ruler (at time of posting). xRuler rewards at current apy mentioned above, on this amount would net approximately: 6.35 $ruler per day, 44.43 $ruler per week, 177.73 $ruler per month, and 2,132.80 $ruler per year. At current market value of $ruler that is: 140 dai a day, 977.9 dai a week, 3,911 dai a month, and 46,939 dai a year.

In the near future, Ruler will be launching veRuler, which will provide likely higher apy rewards with time-locked options, as well as slash pools. Slashpools allow a staker to exit veRuler earlier than the time-locked they chose, however at the cost of some rewards being slashed. These slashed rewards are then redistributed to the veRuler pool, earning stakers additional rewards. You will be able to exit veRuler staking at any time with slashing, or at the end of your locked-option, without slashing.

By investing in Ruler now, PT would secure a large position in governance and increase treasury diversification for the future, while also likely earning considerably respectful rewards apy and appreciation on the investment.

I hope this clarifies your concerns and allows you to make a more informed survey vote, whether for or against.

Thank you,

Dotcom
@Dotcom_CSO on Twitter

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Hi All,

This is teddy9423 from Ruler Protocol. I work on the community side of things along with communications and partnerships.

As @dotcom stated, there is no requirement of this said investment, which i personally do not think is the right way to go with opening our relationship and potential partnership. That should be at the full discretion of a separate community vote on a separate proposal with regards to treasury diversification. I do not think that should be the main focus of this proposal.

The main focus of this proposal should be getting POOL or pPOOL listed on Ruler Protocol. The benefits are:

  • POOL or pPOOL holders get access to liquidity without ever having to be worried about being liquidated,
  • They receive a fixed borrow/lend rate
  • All a borrower has to do is pay back on time
  • Also an add-on feature is that if your loan becomes greater in value than your collateral, don’t pay the loan back! Keep the loan, default on your collateral. BOOM you just hedged your self against price of pPOOL or POOL. You can view it as a put option.

As stated, $6k in incentives per week will unlock 25 xRULER to be incentivized from Ruler’s side. $6k is not a hard cap to be listed, we will accept any amount of incentive. How ever the $6k is the minimum to be able to receive xRULER incentives. This is not limited to just POOL but all collaterals we list.

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@teddy9423 @dotcom

I appreciate the time spent to elaborate the proposal and how Ruler works, but it has not convinced me. Perhaps listing it as collateral without the xRuler reward and see if there is native demand would convince me, but this doesn’t seem like a good use of our treasury to me. I found xRuler on etherscan - xRULER (xRULER) Token Tracker | Etherscan - but there is no market/liquidity to exit these to $Ruler other than via the Ruler Dapp (and I’m not crazy about that). Im not trying to bash it - and am a self described smooth brain - but I don’t get the upside for PT.

Again apologies if i got anything wrong in my reading or research.

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Hi Teddy, question about how Ruler oracles work… Is it taking the price of POOL from uniswap v2? What would happen in the event the liquidity moved to v3 or sushi for example? There is no established exchange price feed so just wondering how the RULER protocol manages that risk? Do you have other tokens that are collateral enabled but have pretty much solely DEX liquidity supporting the price?

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Got this answer from a member of the Ruler team"We use Chainlink oracles for price. If price goes bellow minimum collaterization ratio we disable lending/borrowing/minting. If there is no Chainlink feed for the token we omit the check and people can deposit as usual. And yes there are some pairs on Ruler without chainlink feed and they operate just fine:)"

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I believe there are some changes taking place and there will no longer be xruler rewards borrowers. If we meet the minimum $6,000 we would instead be featured on the order book for Buy/Sell of POOL. If we choose to incentivize with a lesser amount we can still be listed as a collateral type. My hope is to meet the minimum 6K at least for a 3 month trial period, but we could also offer a lesser amount and still be listed.