A Rubik's Cube is a puzzle. A struggle for some, less for others, however, it can be solved by every user once algorithmic logic is applied.
RubixDao is a financial primitive cube developed on Lamden to provide an additional coloured cubic layer to the expansive DeFi space.
A stable backed, alternative currency option
RubixDao allows for you to retain your collateral whilst still being able to borrow its value in the form of stable assets. You provide collateral without having to sell your assets and borrow stablecoins with two percent (2%) interest.
The process is simple: create a RubixDao vault, deposit your crypto assets as collateral, and start borrowing stablecoins against your collateral’s value.
John has a small business. His business has 1,000,000 Lamden tokens as assets. Unfortunately, John’s hard disk suddenly stopped working (at no fault of the government this time). John now needs to decide whether to sell his TAU to buy his new hard disk or keep his TAU as his evaluation is that it will appreciate long term.
Through utilising the RubixDao protocol, John can deposit his 1,000,000 TAU into a vault and borrow stablecoins against that collateral to purchase his new hard disk. John gets his hard disk and gets to keep all of his TAU. Pursuant to this, if the TAU prices increase next week, John will still be able to realize those gains. Meanwhile, the stablecoins John took out against his collateral can be paid back at any time.
RubixDao is Lamden's first native stablecoin protocol. It is community-governed and decentralized. The protocols loans are secured by always having more value locked (collateral) than the amount of debt issued to borrowers. Loans are paid out and repaid in TAD (the stablecoin is soft pegged to USD).
RubixDao contains the following elements:
Overcollateralized vaults: At all times, TAD stablecoins are fully backed by collateral.
Vaults: Where users deposit their token collateral and borrow TAD. Vaults are managed and controlled by the protocol’s users.
Decentralized: RBX is built on market incentives and penalties. Users have complete sovereignty over their funds.
Tokens: TAD is the stablecoin made by the RubixDao Protocol and RBX is the protocol’s governance token.
RubixDao goal is to provide a DeFi protocol that allows for its users to easily participate in decentralized finance. The Protocol will allow for its community to continue to develop features and services in an open and transparent manner – this has been developed for the Lamden community and will be ran by the Lamden community.
It is our hope that this community protocol with facilitate further DeFi innovation and development on Lamden. We look forward to seeing the direction you take this protocol in and to experiencing it with you.