# 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." \
\
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="/files/mU7vjX33LBZnHLhNeX0H" 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:** \
\
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;


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.royco.org/overview/key-concepts.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.