The foundamental motivation of this proposal is to find ways to increase the useage of the Ruler token and increase the value of the ruler protocol. This token should not be used as farm and dump and the best ways to prevent this is to find different usecases for it.
The most interesting reason for speculators/investors are economical reasons. Thats why i suggest that the Ruler token should have some kind of cashflow. The Ruler treasury (Zapper - Dashboard for DeFi) has already collected about 90k USD in the first week. So i suggest that we use the same system, as for Cover - xRuler:
Benefits to the holders and the protocol:
- every interested short or longtime holder will be able to earn an additional cashflow
- xRuler would be a really good decentralized collateral on different websites like AAVE / Cream / Maker / Compound and in addition the user is still able to earn the underlaying protocol fees
- because of this “buyback” there is a constant buying pressure for Ruler and that should increase the price of CVP in the long run
- we dont need any audits, cause xCover is beeing Audited right now and its ready quite soon. So we can implement that idea quite fast.
If you have any question im sure the team is going to answer them cause they had the idea and coded it already for cover.
Big pleasure to be the first one posting here