Decentralised finance continues to expand across blockchain networks, with new projects exploring different approaches to lending, stablecoins and liquidity. One of the newer platforms in the ecosystem of the Internet Computer Protocol is Rumi Protocol, a project focused on creating a decentralised stablecoin system designed to operate entirely on chain.
At the centre of the protocol is icUSD, a decentralised stablecoin that users can mint by locking supported digital assets as collateral. The system follows the collateralised debt position model commonly used in decentralised lending platforms, allowing users to borrow a stable asset while maintaining ownership of their underlying holdings.
The process begins when a user deposits a supported asset into a personal vault within the protocol. Rumi currently accepts ICP, ckBTC and ckXAUT as collateral. Each asset operates under its own set of parameters, including borrowing limits, liquidation thresholds and interest rates designed to manage risk across the system.
Once collateral is locked, users can mint icUSD at rates that adjust depending on overall protocol conditions. Borrowers can later repay the borrowed stablecoin to unlock their collateral. Repayments can also be made using stable assets such as ckUSDT or ckUSDC.
Supporters of this model argue it provides access to liquidity without requiring users to sell their digital assets. By maintaining collateral inside the vault, borrowers retain exposure to price movements while still accessing funds for other uses.
The protocol also includes a feature known as the Stability Pool. This pool acts as a financial buffer for the system. Users can deposit icUSD into the pool and earn returns generated from borrower fees and liquidation events.
When a vault becomes under collateralised, the stability pool automatically absorbs the position. In return, depositors receive rewards tied to the system’s operations. According to the project, the pool currently offers an annual return of around 4.9 per cent for participants who provide liquidity.
Developers behind the protocol say the multi collateral structure is designed to reduce reliance on a single asset. Price movements in one token therefore have less influence over the stability of the overall system.
Another feature highlighted by the project is its integration with existing stable assets on the network. icUSD can be swapped directly against ckUSDT and ckUSDC, allowing users to move between stablecoins within the ecosystem.
Rumi Protocol is built entirely within canisters on the Internet Computer network. These canisters run both the application interface and the underlying logic directly from the blockchain. According to the development team, the frontend, backend, ledger and price feeds all operate on chain.
The protocol also relies on the Internet Computer’s exchange rate canister to obtain price data. This approach removes the need for external oracle networks or cross chain bridges, both of which are commonly used in decentralised finance systems on other blockchains.
Developers say removing those dependencies can reduce operational risks linked to off chain infrastructure. At the same time, critics within the broader DeFi sector often note that fully on chain systems must still prove their resilience under market stress.
Security and transparency remain key points of focus for the project. The protocol’s code is open source and available publicly. A security audit has been completed by AVAI, and the team plans to host a community audit competition through Code4rena as part of its ongoing development process.
Rumi Protocol is also part of the ICP Hub Accelerator programme, which supports early stage projects building applications within the Internet Computer ecosystem.
Recent updates from the project highlight a number of features that are now live on the network. Borrowing through collateral vaults is active, allowing users to deposit supported assets and mint icUSD. The Stability Pool is also operational, enabling users to deposit icUSD and earn returns generated by the system.
Integration with the Oisy Wallet allows users to connect directly to the application and interact with the protocol’s features.
The development team has also outlined a longer term plan to decentralise governance. At present, control of the protocol remains with its developers. The intention is to eventually transfer governance to a decentralised autonomous organisation using the Internet Computer’s SNS framework.
Projects across the decentralised finance sector often follow a similar path, launching with developer oversight before gradually shifting authority to token holders and community governance systems.
As decentralised finance continues to develop on the Internet Computer network, platforms like Rumi Protocol represent attempts to build lending and stablecoin infrastructure directly within the blockchain’s native environment.
Whether icUSD gains broader adoption will depend on liquidity, user participation and the system’s ability to maintain stability during volatile market conditions. For now, the project offers a new example of how developers are experimenting with decentralised finance tools within emerging blockchain ecosystems.
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