Adding more utility to ibBTC
Since launch, users who minted ibBTC have been able provide liquidity on the new Sushiswap ibBTC/WBTC pool in order to receive an LP token that could then be staked in a dedicated Badger vault for boosted APY and little impermanent loss.
BadgerDAO is excited to announce that Ruler Protocol is now accepting ibBTC and bBadger as collateral for borrowing and lending stablecoins along with farming to earn Ruler and Badger tokens. You will never be liquidated and your interest rate is fixed at the time of your transaction. In order to collect your collateral back you just need to repay prior to the expiry date. This is the first of many steps towards adding increased utility to ibBTC across DeFi, allowing users to lend, borrow, farm, and provide liquidity cross-chain.
Ruler Protocol is a lending and borrowing platform providing its users with market-driven, fixed-rate, and non-liquidatable loans. With the Ruler Protocol, there are no bonding curves to determine interest rates. Instead, rates are decided by market supply and demand. As long as you make your loan repayment by the due date given, you will never have to worry about health factors or having your position liquidated.
Learn more about Ruler Protocol: https://docs.rulerprotocol.com/
How to use ibBTC and bBADGER on Ruler Protocol
You can deposit your ibBTC/bBADGER into the Ruler Protocol to borrow stablecoins. We’ll be going over the 5 main functions within the app below including how to borrow, repay, lend, collect, provide liquidity and farm.
Head over to the Lite UI and click borrow.
Select ibBTC or bBADGER from the collateral drop down followed by your preferred stablecoin to borrow and enter the amount. The app will then compute your loan amount according to the interest rate
Note: When performing this action you will receive rrTokens. The rrToken represents the amount of DAI you have to repay prior to the expiry date listed on the UI. If you do not, you will forfeit your collateral. For example, if you have 100 rrTokens you must repay 100 DAI.
Head over to the Lite UI and click repay.
Select ibBTC or bBADGER from the collateral drop down, then proceed to repay the amount of DAI you owe (the amount of DAI you owe is determined by how many rrTokens you have). Once your repayment is complete in full, you will receive the full amount of your collateral back.
Users can lend stablecoins for other users to borrow against their ibBTC/bBADGER. The lender will collect repayment, interest and any defaults at the time of expiry (the time the borrower pays back his loan).
Head over to the Lite UI and click lend.
Select ibBTC or bBADGER from the collateral drop down followed by your preferred stablecoin to lend and the amount. The app will then compute your lending interest rate.
Head over to the Lite UI and click collect.
Select ibBTC or bBADGER from the collateral drop down and enter the max amount of rcTokens you have. This will return the equivalent amount of DAI including any default collateral.
V. Providing Liquidity and Farming
In order to farm you must first provide liquidity to the collaterals respective liquidity pool. When farming you will receive $BADGER token, $RULER token and any swap fees from within the liquidity pool. To provide liquidity you must add liquidity in the form of a stablecoin (USDC, DAI, USDT and/or rcToken) in any combination (you can add one asset, 2 assets, 3 assets or all 4).
Obtaining rcTokens to provide liquidity and farm
If you do not have rcTokens you can mint them using ibBTC, bBADGER or DAI. To do this, you will head over to the Pro Tab, click into ibBTC/bBADGER and choose Mint.
You can choose to use ibBTC or bBADGER or unselect to use DAI. When using DAI you are minting DAI 1:1 for rcToken. When using ibBTC/bBADGER you are minting rcToken according to the mint ratio.
When minting with collateral (ibBTC/bBADGER) you will be receiving both rr and rcTokens. You can then follow the steps above for Providing Liquidity and Farming
In order to get your collateral back (ibBTC/bBADGER), you will need to return DAI or rcTokens equal to the amount of rrTokens you have received using the steps of Repaying.