Rootkit Finance, Bridging the Gap Between Legacy & DeFi 2.0

Due to the growing popularity of decentralized finance, the industry needs to keep evolving. Different options are on the table to usher in the era of DeFi 2.0.  Rootkit Finance wants to play a pivotal role in this upcoming transition.

The Growth of Legacy DeFi

It is somewhat unusual to think of the current DeFi landscape as a "legacy approach." Many projects have proven to be successful, and new ones are still launching every day. However, the direct approach of all of these projects leaves much to be desired. Ambitious teams and developers are looking through a much bigger scope for decentralized finance.

Before the transition to DeFi 2.0 can occur, the necessary infrastructure needs to be developed. That is easier said than done. Furthermore, there needs to be a way to bridge the divide between decentralized finance's current iteration and what DeFi 2.0 brings to the table.  That also means addressing some of the critical concerns decentralized finance faces today.

One of those issues is the so-called rug pull. A rug-pull is when token creators remove their trading pool liquidity on AMM platforms, resulting in millions of dollars in losses. This approach is somewhat common on Uniswap and similar platforms, but there is no recourse for affected traders. Creating a safe environment for DeFi 2.0 is mandatory.

Rootkit Finance Has a Plan

Finding innovative projects and concepts in DeFi is no difficult task. Rootkit Finance is convinced they can bring much-needed improvements to this new industry. As a first project, two of its team members "hacked" the Uniswap AMM system and spoofed its underlying liquidity. With this knowledge, the team can build its own AMM model to make DeFi a safer industry.

One of the most significant changes is how Rootkit Finance aims to build a self-sustaining vault. To achieve this goal, the team will leverage their ERC-31337 token protocol. It allows for spoofing liquidity under the current price floor.

Additionally, the team wants to provide permanently locked liquidity to any token that launches through its project. Also, these tokens will have a vault capable of financially sustaining project development. Eroding the need for developers to sell off their assets will provide better pricing and avoid rug pulls.

A Solution For B2B and B2C?

To usher in the era of DeFi 2.0, Rootkit Finance will focus on two core components.

The B2B approach is beneficial to any developer or team looking to launch a token. In exchange for using Rootkit Finance, they will receive a self-sustaining vault and permanent liquidity locking. More importantly, this offer includes a guaranteed 72 hours of bullish market pressure.

For B2C, Rootkit Finance wants to bring a launchpad service that anyone can use to launch new tokens. Furthermore, a decentralized exchange - or DEX - is under development. Both the launchpad and DEX will be safe from rug pulls and include a guaranteed 72 hours of bullish pressure.

The Native ROOT Token

As an "experiment" of sorts, the Rootkit team launched the ROOT token. It is a unique creation, as it includes a transaction tax to fund its developer team and the vaults provided to customers. Currently valued at over $650, the ROOT token is already attracting a lot of attention.

This token has its own pools on Rootkit Finance, including kETH/ROOT, wETH/ROOT, and WBTC/ROOT. Users will soon be able to stake their LP tokens to receive rewards, similar to how Uniswap handles this particular aspect.  The kETH token is a wrapped version of Ethereum compatible with this specific platform.

To raise the price floor for ROOT, the team will buy back tokens from the market regularly. The ongoing buyback initially set at 420 ETH, has now been increased to 690 ETH. You can find more information on this process in this Medium post.

Future Plans and Roadmap

Whenever a new DeFi project launches, people will automatically expect its code to be audited. For Rootkit Finance, that process is still ongoing. Certik will take care of this review shortly. 

As far as the launchpad is concerned, that functionality will not be available in 2020. Currently, the ETA stands on January 15 but will remain subject to change if any unexpected delays or issues pop up.

Conclusion

Transitioning from the current state of DeFi to DeFi 2.0 will require innovation and building blocks. Rootkit Finance wants to position itself as such a building block. Revamping the AMM model to benefit users is an intriguing concept, but it remains unclear if enthusiasts will switch to this platform. 

Disrupting the dominant position of Uniswap will not come easy. Several projects have come and tried and ultimately failed.  However, none of those platforms offer any investor protection like Rootkit Finance, giving this platform a distinct competitive edge. Only time will tell how well their protection holds up, though.