Benefits & Usecase

The potential powered by the community is endless.

Potential benefits to the users:

RubixDao enables users to be their own banks and have financial sovereignty.

Borrow to purchase other assets: Borrow against your existing wealth and purchase additional assets, expanding your investment portfolio. You could, for example, borrow TAD to buy other tokens such as WETH to hedge your TAU exposure (Subject to Rubix Governance).

Consolidating debt: Borrow TAD to pay down high-interest debt and consolidate that debt within one protocol.

No scheduled payments: You won’t need to commit to monthly payments or deadlines; you can repay your debt at any time that is convenient to you and your needs.

Instant credit: You don’t need credit checks or someone else's permission to borrow TAD. You are your own bank and have sovereignty over your finances.

TAD as collateral: Lending protocols can require stablecoins to borrow tokens. You could use TAD as stablecoin collateral in those platforms, essentially using your original tokens as collateral for debt in lending protocols.

Potential Benefits for Projects:

Rubix gives projects a way for their users to hold their tokens while still being able to use their value in the form of stablecoins (Collateral types are subject to Rubix Governance). We envision any crypto community being able to create, govern, and benefit from stablecoins backed by their tokens as collateral.

Through Rubix, holders will be able to borrow against their tokens and receive stablecoins (Subject to RubixDAO Governance). This adds use cases for accepted tokens and provides upwards price pressure on the token through taking it out of circulation.

Other potential benefits for projects include:

Stable pricing structures: By denominating pricing in stablecoins, projects can reduce volatility risk in revenues.

Unique incentive benefits: Projects could provide user incentives to use stablecoins backed by their native tokens over other stablecoins.

Contributor costs: Not all contributors accept project tokens, but paying in stablecoins like USDT/USDC/DAI/TAD means selling off project tokens. This can create a harmful sell pressure; this is especially relevant to new projects. By using stablecoins backed by their tokens, projects can pay contributors without selling off tokens (Collateral Types are subject to Rubix Governance).

Please note that all Collateral Types are subject to DAO Governance and this will be decided by the community. At this time only TAU shall be utilized as Collateral for this Protocol.