We would like to incentivise liquidity on a borrowing and lending platform Ruler protocol by sponsoring a DPI listing.
This will campaign will provide the following benifits:
- Create a extrinsic productivity opportunity for DPI helping with unit retention
- Enable DPI holders to earn INDEX and RULER rewards by providing liquidity
- Allow DPI holder borrow stablecoins against their DPI with no liquidation risk during a loan period
Following the forum post to list DPI on Ruler protocol. We have been engaging with the Ruler team to on a way to move forward with the listing. We were presented with two options launch a snapshot vote on Ruler to list DPI or sponsor the listing with incentives for a period of 6 weeks. If we were to sponsor the listing it will cost us $8 000 worth of INDEX per week totalling $48 000. If we were to proceed with the option the Ruler team would co-incentivise the liquidity pool with 75 Ruler per week.
Ruler protocol is a lending and borrowing platform that allows user to take out “non-liquidatable” loans on their crypto assets. The collateral can only be liquidated at the end of the loan period if the borrower decides to to pay back the loan or not. This means that regardless of the price movements in crypto your loan cannot be liquidated during the loan period. The protocol is popular in DeFi because of this unique value proposition and has attracted partners with leading DeFi protocols like Badger, Alchemix and Harvest finance.
We believe this will be a good partnership to pursue for Index Coop as it will create another extrinsic productivity opportunity for DPI. Users will be able to stake their DPI token as liquidity and earn rewards in INDEX and RULER. Furthermore, it will allow users to borrow stable coins against their DPI position to create a CDP. As mentioned in the DeFi Partnerships and Integrations Q2 and beyond this is one of the target partnerships we would like to pursue this quarter and we are excited to bring more productivity opportunities following the interest from this tweet.
- DPI liquidity on Ruler protocol
- Stable coins loan value
- $1 million DPI liquidity
- $500 000 worth of stable coin loan value
- Social media announcement about the campaign through both parties’ media channels
- Article and twitter thread about how to borrow against DPI on Ruler protocol
We will put up a poll to gauge whether to proceed with the sponsorship or not after initial feedback.
- After forum feedback create IIP to request funds from treasury
- Work with Ruler team to set up DPI vault on Ruler protocol
- Proceed with DPI listing sponsorship
- Do not sponsor DPI listing