[Reset Snapshot Block] Continue the Project with Collar

*For giving weight to RULER holder, we change l the snapshot block prior to the Ruler’s shutdown announcement. Previous Ruler holders can be involved in this voting. Background It’s been 4 days since the Cover and Ruler teams suddenly announced they decided to shut down their projects. The community has complex feelings about how these 2 protocols ended up in this situation. Multiple developer groups have offered to take over the projects, but, out of caution, the remaining team has declined their offers. The only option that remains to continue Ruler and Cover is to fork their code and start new projects. Their concerns are rational since there are a lot of COVER whales wanting to take over the project to pump up the token price, but then dump and abandon the project. But we (Collar) do not have such a stake in the COVER/RULER tokens, and are instead developers who hope to keep the projects alive and believe we are in a position to make this hope a reality. We are an experienced development team with a deep understanding of the Ruler/Cover mechanisms due to our protocol’s similarities, and we are in the unique position of being able to leverage our own growing protocol’s synergistic potential with Ruler/Cover.

Motivation Back in April, we had an idea for a protocol for fixed rate lending which was inspired by Ruler and began development on it. Its use is to hedge pegged assets via decentralized lending and it has already been deployed on the Ropsten network. Docs: https://docs.collar.org/ Github: https://github.com/CollarFinance Testnet: test.app.collar.org The main idea of splitting collateral into a call option and a right of repayment is retained from Ruler. But we took lessons from Ruler and designed a new AMM model for lending. The Collar AMM invariant is designed to raise the capital efficiency and decrease loss from slippage.

Collar is a non-liquidation fixed-rate lending protocol for the unique use case of protection against asset de-pegging. We are offering Cover and Ruler stakeholders an opportunity to use their COVER tokens as collateral to receive the new COLLAR tokens. The process will be similar to depositing wETH and borrowing DAI, but Collar offers 100% LTV.

Specification We believe the best way to handle the Cover/Ruler transition is to hand control over to a keeper who is trusted by the community. Various members of the Collar team have been in contact with the remaining Ruler team and have been listening to the community’s concerns since the shutdown announcement. After internal discussion, the Collar Finance team would like to put forward this proposal. Our goal is to provide a solution which benefits everyone who has a stake in Ruler/Cover. We believe that saving these projects will be to the benefit of everyone who used, benefited from, and have a stake in Cover and Ruler. The Collar team is genuine in its intent to maintain these projects and continue forward along the path that Cover and Ruler have started down. Collar Finance won’t take control of COVER or RULER tokens or make profits from them or what remains of the projects’ treasuries. Any unreleased allocation can be burned or locked permanently. Other remaining assets will be carefully kept and used to fund future project development. COVER holders will have the option of borrowing COLLAR tokens against their tokens at a fair value if they wish, but they retain the right to swap back to COVER at any time. We believe this can bring about the stability needed in this time of uncertainty. Development of Cover/Ruler will be resumed by our dev team from where the previous teams left off.