# Key Concepts

## 1**. Incentivized Action Market (IAM)**

A market for an onchain action (or series of actions).  Actions can be e.g. "deposit into X protocol," "mint an NFT," or "execute a series of transactions." \
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Incentive Providers (IPs) offer incentives like points or tokens to Action Providers (APs) to complete actions. They can both offer/counter-offer until they agree on an incentive amount to complete the action. 

<figure><img src="https://3836750677-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFUgP4mdwyU2SaFFJTcT6%2Fuploads%2F111ahygT9HNxc2FDolJ4%2FScreenshot%202024-08-30%20at%202.39.09%E2%80%AFPM.png?alt=media&#x26;token=6059bd7f-a514-4a50-a7af-8db69e6d92ff" alt=""><figcaption></figcaption></figure>

## 2. Incentive Providers (IPs) & Action Providers (APs)&#x20;

**Incentive Providers** (IPs) offer incentives to users to perform onchain actions. **Action Providers** (APs) offer to perform actions for incentives.&#x20;

**Example:** \
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Aave creates an IAM to incentivize users to hold the GHO stablecoin for 1 month.&#x20;

* Incentive Provider: Aave
* Action Provider: Royco users
* Action: Hold GHO for 1 month

## 3. Offers

IPs and APs create offers on the IAM.&#x20;

* An IP offer might be: "I will reward 10 XYZ tokens to a user who supplies $10 of USDC."
* An AP offer might be: "I will supply $10 of USDC, *but for 15 XYZ tokens."*

Offers enable competition between APs for incentives. For example: AP #1 may think XYZ tokens are worth $10 each. AP #2 may think they are worth $20 each. AP #2 may create an offer to supply the same assets, but for many less XYZ token.

## **4. Capital-Efficient Network**

Anyone can create offers using assets currently in a Vault IAM. So if you supplied $10 USDC to the "Supply USDC to Aave" IAM, then you can place limit offers on "Supply USDC to Fluid" IAM, using the same underlying $10 USDC while still receiving incentives.

## **5. Open Incentive Graph**

The Open Incentive Graph is an index of all offers and IAMs that is accessible to all. Front-ends, wallets, and projects that are building on top of Royco can embed the graph to surface IAMs to their users.&#x20;