The Power of a Price Floor

Rootkit actively uses its own Ethereum Liquidity to drive volume and increase the price of ROOT.

Price Floor is a term used in both traditional and crypto circles, which refers to the lowest possible price an asset can reach. Often what guarantees that price is a centralized trusted authority like a government or the asset issuer. In these cases the floor isn’t real, because that authority can change their mind. Rootkit creates the floor based on math and nothing else, removing the need for trust and giving anyone the ability to verify.

Creating a price floor

ROOT’s supply is fixed because if there were extra issuance of the token, the future supply would lower the floor, meaning it was never really a floor at all. Similarly, if the liquidity was able to be removed, that would lower the floor and negate it as well.

Finding the Floor

When we combine the price floor with our own wrapped version of ETH, we can remove the backing from ETH under the price floor and move it to the vault. Our Transfer Gate has a function to check the floor price and execute the transfer so the ETH can be used again.

The Rising Floor

  • Uniswap trades collect small fees into the liquidity pool, which slowly increases the price floor.
  • Burning any token outside the pool also increases the price floor because less can now be sold into the pool.
  • We will also offer bonuses for LP creation after the LGE is over. If the creation of 1 ETH worth of LP tokens raises the floor by 0.5 ETH, we can offer a 25% bonus and still increase the vaults holdings (everybody wins).

Wasted Value

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