Key Concepts

These are the key concepts of the Royco Protocol.

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." 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.

2. Incentive Providers (IPs) & Action Providers (APs)

Incentive Providers (IPs) offer incentives to users to perform onchain actions. Action Providers (APs) offer to perform actions for incentives.

Example: Aave creates an IAM to incentivize users to hold the GHO stablecoin for 1 month.

• Incentive Provider: Aave

• Action Provider: Royco users

• Action: Hold GHO for 1 month

3. Offers

IPs and APs create offers on the IAM.

• 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.