Premium Preview: Intro to Royco - The Incentivized Action Market374.8K
This article was originally published last week as part of our premium content for paid subscribers.
Royco establishes the Incentivized Action Market (IAM) to enable any party to create a market to incentivize any onchain transaction (or series of transactions). IAMs can be used to find efficient pricing for or encourage any onchain action, including depositing, staking, lending, voting, minting an NFT, etc.
Royco believes that actions are the most fundamental unit that constructs the whole blockchain ecosystem. For example, Royco considers ETH staking on Ethereum as one of the most successful incentivized onchain actions with ~$4B+ in assets (ETH) distributed to incentivize the single action of staking with $100B+ of ETH staked.
Royco aims to build the IAM and replicate the success of ETH staking to solve onchain issues such as
No price discovery
In current mechanisms like liquidity mining or airdrops, protocols don’t know how much to spend on incentives and cannot measure or capture latent demand.
Users have no tools to negotiate for more incentives.
Fragmented markets
Every new protocol must bootstrap an isolated network of market participants, which is a lot of work.
Users must stay on top of various channels to benefit from new incentives and markets.
Inefficiencies benefit a select few
With constrained price discovery and participation, incentives have shifted to offchain agreements controlled by a handful of whales and institutions.
This diminishes the potential of permissionless crypto markets.
How IAM Works?
Royco Protocol allows anyone to create a market around any onchain transaction (or series of transactions). Using Royco:
Incentive Providers (IP) may create intents to offer users incentives to perform the transaction(s).
Users/Action Providers (AP) may then create intents to complete the transaction(s) and/or negotiate for more incentives.
When these intents satisfy each other, the user’s transaction is atomically executed, and the IP distributes the negotiated incentives.
Use Case
Application Incentivized Action Increase TVL Ex: Supply assets Maintain TVL/ Reduce Selling Pressure Ex: Stale or lock assets Pass/ Reject Proposal Ex: Vote on proposals Support NFT Floor Price Ex: Buy and hold NFTs Community Action Ex: Buy & burn onchain carbon credits.
Benefits
For IP - Incentive spending information: IPs can view APs’ limit offers to better understand how much incentives to give APs. By doing so they can:Capture latent demand Maximize growth Decrease costs
For AP - One-stop Incentive Hunting: Instead of having isolated incentives across different protocols that are difficult to find, farm, etc. IAM provides an one-stop marketplace for users to view all the currently available incentives across different protocols.
User Guide
Go to Royco website
2. Users/ APs can view the currently available incentives from IPs (ex: protocols) and create offers to complete onchain actions for incentives, like points or tokens according to a payout schedule.
3. Interfaces have two views to create offers:Simple Mode: View all incentives that a user is eligible to receive in the market, as well as market type, etc. You can perform the action to receive the incentives according to the payout schedule. Advanced Mode: View all market details, but also the depth of incentives offered. Advanced mode can be used to place "Market Offers" and "Limit Offers." The depth chart shows AP offers in Red and IP offers in Green.
4. On the interface of each mode, there’s incentive payout schedule. It’s immutable and setup upon creation of the incentive market by IAs. There’re four types of schedule,Immediate: Incentives paid immediately upon action execution. Streamed: Incentives paid over time, pro-rata to how long a user is in a market. Post-Lockup: Incentives paid after a timelock. Early withdrawal NOT allowed. Forfeitable: Incentives paid after a duration set by the market. Early withdrawal IS allowed, however, if a user exists early they forfeit all accumulated incentives.
5. Users can place market or limit offers for the incentives in the given markets. Market offers will be executed immediately in exchange of the current given incentive payout schedule Limit offers will only be executed will the incentive payout schedule meets the conditions, i.e. when IPs increase incentives or TVL from APs in the markets decrease.
6. Once you've completed your transactions, you can view and manage your positions via the Portfolio tab.
Risks Involved
⚠️ Royco smart contract risk
⚠️ IP smart contract risk
⚠️ Vault management risk
Security
Royco is
The audit does not guarantee any hacks. Please do not invest with more than you can afford to lose.
