# Collaterals

## Collateral Types

There are three major types of collateral on Ruler.&#x20;

* **Core**
  * Collaterals that have wide-spread recognition in crypto communities, like wBTC and wETH.
  * Collaterals that are important to the protocol like RULER as the governance token of the protocol.
  * Collaterals that are critical strategic partners, like COVER.
* **Norm**
  * Collaterals that have some recognition in some crypto communities, like xSUSHI.
  * Collaterals that are from strategic partners, like INV.
* **Innov**
  * Collaterals that are from newer projects without wide recognition and unclear borrowing needs.
* **Degen Pool**
  * Collaterals with a higher LTV ratio.

***Note: each collateral can change its type through a community proposal at any given time, it will take effect in the next loan cycle.***

## Collateral Delisting Process

Passed [REP5-a](https://vote.rulerprotocol.com/#/rulerprotocol.eth/proposal/QmQ35Msft4x58YvhPd4kQRj5MZEQv723Jd6KDH8gUgv1m8).

If a collateral is not borrowed against sufficiently, Ruler will delist the collateral the month after. Collaterals can be listed again in the future when the borrowing needs are justified.

**Delist criteria:**

* Total borrow amount is **less than $70,000**.
* Borrow/Loan ratio is **less than 20%**, and rewards reduction is not possible. If rewards reduction is possible, it will be executed before delisting.

**Exception criteria:**

* Partner is incentivizing the liquidity pool.
* Collateral liquidity pool has no RULER rewards.
* Total loaned is expected to be more than 200k.
