Overview
Roots is a decentralized finance (DeFi) protocol engineered to enhance liquidity and yield opportunities within the Berachain ecosystem. By utilizing Berachain's Proof of Liquidity (PoL) mechanism, Roots enables users to unlock liquidity from their assets, mint the $MEAD stablecoin, and participate in various staking and governance activities.
Key Features
- Collateralized Borrowing: Users can leverage Berachain-native tokens and liquidity provider (LP) positions as collateral to mint $MEAD, a stablecoin. This process allows users to maintain exposure to their assets while accessing liquidity.
- Stability Pool Staking: $MEAD holders can stake their tokens in the Stability Pool to earn rewards from liquidation events, thereby contributing to the system's stability and receiving additional yield.
- Governance Participation: By earning and staking $BGT (Berachain Governance Token), users can influence protocol decisions, ensuring a community-driven approach to development and operations.
Tokenomics
- $MEAD Stablecoin: Minted by collateralizing approved Berachain assets, $MEAD serves as a stable medium of exchange within the ecosystem. It can be staked in the Stability Pool to earn rewards and participate in liquidations.
- $BGT Governance Token: Earned through liquidity provision and ecosystem participation, $BGT grants holders the ability to stake and delegate their tokens, influencing governance decisions and securing the network.
Why Choose Roots?
- Enhanced Liquidity: Roots allows users to unlock liquidity from their assets without selling them, providing flexibility and capital efficiency.
- Yield Optimization: By staking $MEAD in the Stability Pool, users can earn rewards from liquidations, maximizing their returns within the protocol.
- Community Governance: The protocol emphasizes a decentralized approach, enabling users to participate in governance through $BGT staking and delegation.
FAQs
1. What is Roots?
Roots is a DeFi protocol on Berachain that enhances liquidity and yield opportunities by allowing users to collateralize assets to mint $MEAD stablecoin and participate in staking and governance.
2. How can I mint $MEAD?
Users can mint $MEAD by depositing approved Berachain-native assets or LP tokens as collateral within the Roots protocol.
3. What is the Stability Pool?
The Stability Pool is a feature where $MEAD holders can stake their tokens to earn rewards from liquidations, contributing to system stability and receiving additional yield.
4. How does governance work in Roots?
Governance is facilitated through the $BGT token. Users earn $BGT by participating in the ecosystem and can stake or delegate it to influence protocol decisions.
5. What assets can be used as collateral?
Approved assets include $BERA, $iBGT, $HONEY-WBERA BEX LP, $HONEY-USDC BEX LP, and $bHONEY, each with a collateral ratio currently set at 120%.
