RIP #14 - Implementing Project RuggyMints

So I researched wrapped tokens after seeing RIP #11 and wanted to add on to the idea if it was to be implemented.

1. (6,6) staking, staking a wrapped token, would help to steadily increase price while also allowing the staker to earn more rewards.

2. If it was implemented another feature should be added to RUGSWAP. The ability to possibly allow lending. Where a 6,6 staker has the option to borrow up to 15% of their wsRUG(collateral) and receive “stable coin” called RUGGYMINTS. Helping to avoid certain tax situations and keep as much Rug out of circulation. •Ex: 10RUG STAKED —> 10sRUG —>10wsRUG STAKED —> borrow up to 1.5wsRUG value in RuggyMints —->(liquidation could happen)

3. This is sort of the strategy that MIM uses to create its stable coin and ohms strategy for keeping liquidity locked.

4. Borrowing should offer competitive interest (preferably none) and higher liquidation fees as a result.

5. Liquidation action should probably be 30% less than the agreed borrowed price (this could possibly change if voted on) but shouldn’t be less than 12% • Ex: if RUG is $50 then you would get liquidated at ($35)RUG and incur a liquidation fee. You would also lose an equivalent amount of wsRUG to the treasury (borrowed amount+liq fee=liquidation total)

Pros: • Decreases price volatility by incentivizing double staking. This only increases RUGS price and utility. • Allows stakers access to more earning opportunities while allowing limited access to liquidity (RUGGYMINTS) up to 15% if needed(or wanted)

Cons: • Time to implement, i don’t know how long this would take to implement but if it’s possible for MIM then it could be done with Rug. But I don’t expect this to happen instantly but should be implemented fast and smart because there will be a crypto boom early next year. • Liquidations. It’s very likely that people may overleverage in RUGGYMINTS but in a way they Rugged themselves and their borrowed collateral (and fee) stays in the treasury. But market volatility could cause unfavorable looks if to many liquidations happens.

•These updates would be seen on RUGSWAP with an new tab for lending. Personally I see little downside to the treasury and price. But implementation could affect the Dev team on other current projects and may dip into treasury funds to pay new devs to accomplish fast.

•Adding 6,6 staking and lending would increase treasury, decrease volatility, incentivize staking, decrease selling pressure(because people would borrow against their holdings), and lead to the future possibilities like creating pegged versions of scam (aSCAM) on avalanche backed by wsRUG. This would also prove RUG to be very Generous.

•This should be implemented mid to late January or anytime before tax season in the US.