So far, the DeFi sector has given birth to countless tokens, many of which are trying to solve real-world problems which traditional finance is unable or unwilling to solve. A lot of DeFi tokens are dedicated to allowing people to use decentralized banking services, achieve passive income, access the global economy from unbanked regions, and more.
As the DeFi sector advances, more advanced projects are emerging, once again tackling different issues. Some are even focused on bringing coins, like Bitcoin, to blockchains that can act as a development platform, through the concept of wrapped tokens. Since the explosion of DeFi last year there are some problems that have been constant, such as poor liquidity, or extreme volatility. The good news is that DeFi recently got a project that aims to solve both of these problems — Rootkit Finance.
What is Rootkit Finance?
Rootkit Finance, or just Rootkit, is a highly deflationary yield-farming token that uses permanently locked liquidity pools. Through this revolutionary technology, the project is capable of unlocking some brand-new possibilities.
The project uses complex technology combining: Uniswap’s pricing mechanism, permanently locked liquidity pools, and a fixed-supply currency. Through utilizing these three components, Rootkit has managed to create a price floor that is very easy to calculate. More importantly, this secures a minimum lifetime price for the tokens.
At this point, we should also introduce you to another of Rootkit’s big ideas; UpTokens. These are Rootkit wrapped tokens, that allow the reuse of liquidity, which, in turn, pumps the price and ensures the minimum lifetime price mentioned above. Additionally, they enable buybacks for each token pair.
When Rootkit created its ground-breaking ERC wrapper the project worked out how to wrap BNB, which became UpBNB. UpBNB is not unique, however, as the project already has three tokens within its ecosystem — UpBNB, ROOT, and UpTether.
The project’s goal is to eventually create 900 new UpTokens, and these three tokens are the first few steps that the project has made towards that goal. In the near future, the project also aims to launch UpMatic and UpCake, with more UpTokens to follow in months and years to come.
Features and benefits
There are four pillars of Rootkit that stand out: UpMarketCap, UpFund, UpTokens, and NFTs. The UpMarketCap mimics the list on Coinmarketcap to measure the value of UpTokens against their pairs. For UpFund, it is a Control Panel for Disrupting Finance mechanisms allowing Root DAO access. Additionally, there is a SuperCharged NFT system to upgrade common non-fungible tokens to a SuperCharged NFT through a Forging contract.
By applying Rootkit’s revolutionary technology the protocol is able to reuse the ETH locked in its ecosystem multiple times, which goes beyond the expected norms of traditional economics. The project’s launch was designed to be as fair as possible, with the received funds being paired with the full supply of Rootkit. This created the first Uniswap pool, and since the entire supply is within it, it starts at the absolute lowest price it can ever reach. After that, the ETH can be reused without affecting the Uniswap market. With it, it is possible to create new trading pools, and even purchase ROOT tokens from the pool, and distribute them with up to 3 LP tokens.
Another invention Rookit has devised is known as Transfer Gate. Essentially, through working out how to wrap ETH, which has already been wrapped (wETH), Rootkit has worked out how to create a Uniswap pair called kETH. The benefit of kETH is that it allows the Rootkit system to unlock previously untouchable token values which are under the price floor — all without affecting the market. Additionally, kETH can be created or redeemed by anyone any time, and the process is completely free, other than the gas fees. This is where the Transfer GATE can be used to quickly and safely provide liquidity, needing only an ETH contribution from the buyer.
Finally, Rootkit is capable of increasing its price through the active use of its own Ethereum liquidity. This liquidity cannot be removed, so the token’s minimum price will always be the same, 100% guaranteed.
