KeeperDao is an on-chain liquidity underwriter for Defi. KeeperDAO’s focus is based on a protocol that economically incentivizes pooled participation in keeper strategies which manage liquidations, rebalances and arbitrage on DeFi applications spanning trading, exchange, and lending.
Liquidity Backstop
KeeperDAO scales DeFi by acting as a proxy volatility fund, providing backstop liquidity for on-chain lending and synthetic asset protocols.
Long Convexity
Harvest excess returns by capturing arbitrage opportunities during times of market volatility and distress.
Game Theoretic Optimality
Via incentivized on-chain cooperation, keepers are able to extract more profit, pay less gas, and capture more opportunities than what would be available to a single actor.
KeeperDao and Rook Tokens
ROOK Emissions
ROOK is emitted every block through inflation.
The amount of ROOK emitted in a block remains the same for the duration of one quarter (three months).
The first quarter emits 200,000 ROOK .
The initial supply is 800,000 ROOK .
The total ROOK emitted during a quarter is 70% of the total ROOK emitted during the previous quarter. This percentage is known as the decay .
Governance can choose to alter the decay .
Distribution
Distribution refers to where newly emitted ROOK is sent. Generally speaking, governance controls the precise distribution of ROOK amongst users.
In the first quarter, 30% of emissions were distributed to liquidity providers , and 70% of emissions were distributed to keepers .
In the second quarter, 30% of emissions will be distributed to liquidity providers , and 70% of emissions will be distributed to traders (people that submit orders through the Hiding Game).
At some point during the second quarter, the Hiding Game will be expanded to include liquidations. At this point, 20% of emissions will be distributed to liquidity providers , 40% of emissions will be distributed to traders , and 40% of emissions will be distributed to borrowers/lenders .
Governance will decide on the distribution mechanism for the third quarter.
It is expected that, as new mechanics are introduced for the Hiding Game, the distribution of emissions will be altered to incentivize adoption. Furthermore, when the Coordination Game (for coordinating MEV between keepers) and the Incentive Game (for incentivizing governance) are introduced, ROOK distributions will also be adjusted. The end goal is to incentivize participation in KeeperDAO, and to disincentive holding ROOK but not participating in any of its MEV mechanisms.
Audits can be found on the keeperdao home page
Quanstamp/Samczsun/PeckShield conducted audits
100% in support of this proposal. Rook is a blue chip in the making.
I’ve already confirmed that Rook whales are willing to pile into this pool (I’m one of them… friends are too).
Because Rook has no native staking abilities yet, there will be a high sub rate to this pool, and because rook’s mining mechanism, “the hiding game”, creating daily opportunities to arb rook at market… there will be no shortage of volume.
The uniswap pool for Rook only has 12k rook or so worth of liquidity and generates 20k+ usd of fees daily. It will be an easy task to monopolize Rook liquidity on Bancor and have Rook/Bnt become a priority route for aggregators.
I would imagine this becomes one of the highest APR pools on Bancor, if passed.
Rook is a special project for a special group of people - chess players. With the growing popularity of lichess and 1 min matches, the amount of rooks being minted is mind-boggling!
I think this proposal would be a pretty big brained move.
Similar to what’s been stated this is a solid project with solid team backed by solid institutions. I would be extremely interested in staking my rook with this proposal. I’m really excited on the potential this would have for both rook and bancor holders
100% in support of this and will gladly put my rook into this pool (I’d consider myself a rook mini-whale). As messi mentioned, there is no native staking – LOTS of holders will follow suit and put in pool.
KeeperDAO’s logo is a chess Rook, and whitelisting Rook inside Bancor would be the smartest play on the chess game that is being played between automated market makers. Here’s why.
KeeperDAO has a “liquidity mining”/“hiding game” right now, where users submit limit trades to be fulfilled by robots. Traders can now trade gas-free, they earn some Rook, and bots earn Rook.
Most if not all the volume routed from KeeperDAO is happening on Uniswap.
An active pair on KeeperDAO is WETH/ROOK
Right. Now the game changer: Bancor whitelists Rook, and nearly all the liquidity on uniswap’s pool WETH/ROOK migrates to Bancor.
This means that Bancor will have better pricing for people looking to trade ROOK through KeeperDAO.
Remember the liquidity mining / hiding game is a competition. Bots are fighting to fill trades. So suddenly there is a huge incentive to integrate Bancor to fulfil trades and make money!
If you run a bot and you integrate Bancor, you are not going to stop with one pair (WETH/ROOK), you will support all pairs.
Conclusion: by incentivising ROOK liquidity, Bancor incentivises KeeperDAO’s bots to support Bancor, which will drive more volume to Bancor, and will help Bancor take volume-market share away from Uniswap.
I think this is a no brainer and is much more valuable than many other whitelisted assets in the past.
KeeperDao is a great project with massive potential. It solves the problem of Ethereum’s gas wars. I foresee its integration in all projects in Ethereum’s ecosystem.
