📚 Technical Overview
Roots is a decentralized finance (DeFi) protocol designed to enhance liquidity and yield opportunities by leveraging Berachain's Proof of Liquidity (PoL). This document provides a comprehensive technical overview of the project's architecture, key components, and functionalities.
Architecture
- Leverage the Chain: Use Berachain-native assets as collateral to mint $MEAD.
- $MEAD: A collateral-backed stablecoin.
Key Components
- Borrowing and Redemption: Use Berachain-native assets as collateral to mint $MEAD stablecoin.
- Stability Pool Staking: Stake $MEAD in the Stability Pool to earn rewards from liquidations.
- Delegation of BGT: $BGT is automatically delegated by the protocol to maximize impact.
- Earning Rewards: Earn rewards through various mechanisms, including staking $MEAD, earning $BGT and $BCV, and participating in additional incentives.
Smart Contracts
Roots utilizes a series of smart contracts to manage its operations. The key contracts include:
- MEADToken:
0xf042c01ee84b73c1ba72957bfb54929393b6410d - BorrowerOperations:
0xe8361788d71675F20e8154aB927521e447EB9E5c - BGTStaking:
0x79a7D70Ea01567d825f5ccf7Fb1Dd84d59ac4A95 - TroveManager:
0x1202613711f02A7FF9dC698537F4C05678F4bB49 - StabilityPool:
0xE966410Bf1ec86a524f79360512Fc453C601D478 - PriceFeed:
0xe08557E7968BA5f7Eea218949Bc5c3312Aa6fA04
Available Assets, Collateral Ratios, and Debt Ceilings
The following table lists the currently available assets for borrowing, their respective collateral ratios, and debt ceilings. Note that the collateral ratio is currently set at 120% for all assets but may be subject to change.
| Asset | Collateral Ratio | Debt Ceiling (TBD) |
|---|---|---|
| $BERA | 120% | TBD |
| $iBGT | 120% | TBD |
| $HONEY-WBERA BEX LP | 120% | TBD |
| $HONEY-USDC BEX LP | 120% | TBD |
| $bHONEY | 120% | TBD |
Fees
The following table lists the current fees associated with borrowing, repayment, and redemption within the Roots protocol. Note that these fees are subject to change.
| Fee Type | Current Rate |
|---|---|
| Borrowing Fee | 0.5% |
| Repayment Fee | 0% |
| Redemption Fee | 0.5% |
Delegation Fees
The following table lists the current fees associated with the delegation of $BGT and $BCV within the Roots protocol. Note that these fees are subject to change.
| Fee Type | Current Rate |
|---|---|
| BGT Delegation Fee | TBD |
| BGT Withdrawal Fee | TBD |
| BCV Claim Fee | TBD |
This section is still work in progress and subject to change as the protocol evolves.