Calculator Upgrade, 1400+ ETH Unlock, 1 Million USD New Liquidity

Here’s what to expect between now and Christmas:

  • Deploying and verifying a new calculator;
  • Sweeping 1400+ ETH to the vault;
  • Adding 1 million USD value of liquidity.

Current Calculator

Our current calculator keeps our system extremely over backed with ETH. Even if the wBTC and wETH contracts had critical bugs that were used to drain the ROOT from our pools, there would still be no risk of holders not being able to exit. This is far beyond overkill and results in a lot of idle value that could be used to push ROOT value up instead.

New Calculator

Our new calculator will look at the liquidity in both the kETH and wETH pools, then sell the outstanding ROOT into both pools proportionally when determining the floor. This is a very low risk assumption to use because kETH and wETH always have the same value. This also means that our calculator knows how much we should be able to sweep from the wETH pool if we were able to.

Sweeping from below the wETH pool floor turns out to be quite simple, we just sweep the amount from above the kETH floor, and overall the amount of liquidity in the system remains correct. If kETH backing ever gets low due to downward price movements, we will just move liquidity from the wETH to kETH pool.

ROOT pools will always have enough ETH to buy back all ROOT tokens at the market price.

Unlocking 1400+ ETH to vault

Our vault will be receiving a deposit of 1400+ ETH when we deploy the new calculator and call the sweep function. The kETH pool will be left with about 500 ETH backing it. If the backing on kETH ever gets below 50 ETH, half (or more) of the wETH liquidity will be moved to the kETH pool.

Adding over 1 million USD liquidity to the wETH pool

This is not the current kETH liquidity being moved to the wETH pool, this is fresh liquidity. We are using the ROOT from the ongoing buy back and newly unlocked ETH from the vault.

The best part is when we finish adding this liquidity, another 500 ETH will be unlocked because new liquidity raises the floor.

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