you can buy lanolin, I have a jar, used a lot by walkers to stop chaffing ?? great for cracked and dry hands and many other parts of the body as well..
I have used it to stop a tent leaking but it don't look pretty.
You could buy a jar and re-lanolanise your rug before throwing it on the bike,, but it may transfer to clothing/ or maybe not,,,,, if it soaks into wool.
I'm also told its the preffered bedroom lube in Wales ??? the smell reminds the bloke of his girlfirends,,,but it only a rumour