Overview
Royco Protocol facilitates the establishment of Incentivized Action Markets (IAMs), where Incentive Providers (IPs) offer rewards to Action Providers (APs) for performing designated on-chain activities. These activities can range from depositing assets into protocols to executing complex transaction sequences. The protocol operates across Ethereum, Arbitrum, and Base, with plans for expansion to additional chains.
Key Components
Incentivized Action Markets (IAMs)
IAMs are specialized markets that incentivize specific on-chain actions. They are categorized into two types:
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Vault IAMs: Focus on deposits into ERC-4626 compliant vaults, allowing IPs to distribute incentives pro-rata among liquidity providers.
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Recipe IAMs: Facilitate any arbitrary on-chain transaction or series of transactions, utilizing Weiroll, a functional scripting language that enables complex operation chaining.
Incentive Providers (IPs) and Action Providers (APs)
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Incentive Providers (IPs): Entities that offer incentives, such as tokens or points, to encourage APs to perform specific on-chain actions.
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Action Providers (APs): Users or entities that execute the incentivized actions in exchange for the offered rewards.
Functionality
Royco Protocol enables IPs and APs to negotiate terms through on-chain offers and counter-offers. Once an agreement is reached, the specified actions are programmatically executed, and incentives are distributed atomically. The protocol’s design ensures capital efficiency, allowing APs to make multiple offers using the same assets, including those currently deployed in other IAMs.
Security and Governance
Royco Protocol is entirely non-custodial, trustless, and permissionless, emphasizing security and decentralization. It has undergone audits by firms such as Spearbit and Cantina to ensure the robustness of its smart contracts.
