Key Concepts

The foundational concepts that underpin IAMs.

1. Incentivized Actions

Incentive Providers use Royco to negotiate with users to perform onchain actions. These actions can be: "deposit into a protocol," "execute a chain of transactions," "mint an NFT," or any other queryable onchain action.

2. Incentivized Action Market (IAM)

An Incentivized Action Market refers to the market created around a transaction or set of transactions. Incentive Providers create intents on the market to offer incentives for users to complete the Incentivized Action. These incentives can be anything: tokens, points, or even NFTs.

Users can create intents to complete those actions or negotiate for more incentives. Incentive Providers can choose to provide the amount of incentives requested or ignore the intent. When these intents satisfy each other, the onchain transaction(s) are atomically executed, and the IP's incentives are distributed.

Each IAM is immutable and entirely non-custodial.

3. Intents to Express Individual Requirements

Intents enable each user to express their individual requirements to complete the Incentivized Action.

• Example: User A and User B create intents on an IAM which incentivizes deposits into a pool with points. User A believes the points are worth $1 each, and User B believes they are worth $10 each. Since User B's $10 intent is higher than User A's $1 intent, his intent executes first. This happens because the nominal amount of points spent makes this intent cheaper for the Incentive Provider.

4. Collateralized Intent

Anyone can create intents using assets currently in another IAM. This enables high capital efficiency, and you to be earning while placing intents for more incentives elsewhere.

• Example: User A currently earns 10% on $1M in a Compound Finance Market via Royco. User A create intents to reallocate their $1M into Ethena, Morpho, and Kinto markets, if the incentives offered surpass 12%. When that 12% rate is hit, the user's wallet programmatically executes that intent.

5. Open Incentive Graph

The Open Incentive Graph is an index of all intents and IAMs, accessible to all. Front-ends and wallets embed the graph to surface IAMs to their users.