Root Genesis is an omnichain governance aggregator that generates revenue through incentives offered by AMM ve(3.3). It transfers part of these revenues directly to its token holders and reinvests the rest in Root's internal DeFi Lab called Bloomworks. Bloomworks uses this revenue to develop innovative DeFi protocols and consolidate them into a unified hub, called Sprout.
THE ECOSYSTEM
Orchard is Root's omnichain governance aggregator, generating utilities then invested in its Bloomworks Defi Lab. It's called Orchard because it pools governance power and revenue across multiple blockchains. Orchard's revenue generation process works through a process of bonds, kickbacks, governance aggregation and reinvestment.
The protocol offers Root, in exchange for $ETH, through the issuance of bonds. This allows him to build an initial $ETH treasury which is then used to accumulate voting power and bribes. In fact, Root therefore uses its treasury reserves to take advantage of incentive mechanisms provided by the new generation dex ve(3,3) (Balancer, Aura, etc) through bribes. These are all those dex in which the Governance token is blocked by obtaining veToken that allow you to vote on which pools will have the greatest incentives in the native token. They also use a "bribery" mechanism to direct emissions to their preferred pools. How does the mechanism work? Through bribes it is possible to "bribe" the holders of certain governance tokens to direct their voting power in the chosen pools. Orchard then uses its treasury reserves by giving bribes that drive issues to Root's liquidity pools. As Root adopts a Protocol Owned Liquidity (POL) strategy, it will hold the vast majority of the liquidity for these pools. Thus, it will accrue revenue in the form of ve(3,3) token issuance that it has self-directed to these pools via bribes. The first protocol to use such a system on Curve Finance. This is how it works:
Governance aggregation allows Root to receive some of the governance tokens and accumulate them to build strong voting power. This unlocks an additional revenue stream for Root's treasury as it can receive kickbacks from interested parties who wish to use the accumulated governance power.
Later a portion of the revenues are reinvested in further bribes, creating a revenue generating flywheel then a self-sustaining source of ongoing income for the Root ecosystem. Another part is distributed directly to Root token holders to instantly generate passive income. Another portion is invested in Bloomworks, Root's internal DeFi lab that provides the key to unlocking outsized returns for Root holders.
This DeFi Lab uses portions of capital generated by Orchard's governance aggregator to develop innovative DeFi protocols that benefit and contribute to Root's growing ecosystem. The protocols developed by Bloomworks are known as Stems. A portion of these revenues is then redistributed to Root token holders, creating an additional source of passive income for them. The ultimate goal is the creation of Sprout, an omnichain DeFi hub that serves as a unifying operating system for DeFi. It is designed to bring together all DeFi products and services under one roof for building standardized UI/UX patterns. This process ensures that each individual dApp and its functionality is properly streamlined and integrated into Root's overall vision.
The ultimate goal of the Root protocol is for Orchard, Bloomworks and Sprout to do all the hard work behind the scenes so that Root token holders can benefit from these multiple/complex strategies.
ROOT TOKEN
Root staked becomes veROOT and it is possible to participate in governance proposals. As mentioned thanks to it, it is possible to earn part of the income that Orchard, Bloomworks and Sprout generate. To stake it, you also need to add an amount of ETH along with Root, either manually or via the zapper function. Staking is always 16 weeks.
Holders of veROOT, receive esROOT, which are redeemable on a 1:1 basis for liquid Root token. The vesting process uses a ve8020 template based on Curve's veCRV mechanism. This system works in conjunction with the 80/20 ROOT/WETH balancing pool. VeROOT holders also have automatic whitelists on all Stem pre-sales, revenue from rootNFT sales on secondary markets (even if they have never bought one).
rootNFT are a special type of tokens that generate passive treasury revenue paid in ETH, BAL, AURA, etc. Other than that, royalties on NFT sales, 20% LP commissions and other revenues from protocol profits.
Root's liquidity is primarily held on an 80/20 ROOT/ETH Balancer pool on Ethereum, along with a Uniswap v3 secondary pool, also on the Ethereum mainnet. Twitter page: Root Genesis
PARTNERS ON MULTIPLE CHAINS
The main multichain partners are: Ramses ve (3,3) on Arbitrum (Root holds many veRAM tokens and vice versa, exchanging mutual favors, making both ecosystems grow by attracting liquidity with voting power), Chronos also on Arbitrum (with Root trying to decrease the selling pressure of the Chr token by buying Governance power and distributing bribes. Chronos instead distributes the Chr token).
Thena on the BNB Chain (again exchange of tokens to increase power in the respective Governance) and Equilibre on Kava (another AMM with reciprocal exchanges of tokens).
Warning, in no case is it financial advice. I wrote this article (unsponsored) because it is a new model (Governance aggregation) and that generates revenue by exploiting complex strategies. However the protocol is very new and if you intend to invest in the $Root token you will need to do your research first!
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