All roads lead to ROME

Puzzle introduces the new derivative on top of Puzzle Lend — ROME.

ROME is supposed to be pegged to 1 USD and is inspired by a combination of the most successful decentralized stablecoin, DAI, and Puzzle Swap megapools.

ROME is already listed on Puzzle!

Asset ID: AP4Cb5xLYGH6ZigHreCZHoXpQTWDkPsG2BHqfDUx6taJ
Trade: Puzzle Swap
Mint: Puzzle Lend

Motivation

Overcollateralized stablecoins are proved to be the most secure assets, non-relying on overall market conditions. However there is a lack of incentive to mint such stablecoins. The idea is to combine the overcollateralized stablecoins model with Puzzle’s megapools to create a stable asset which can generate a compatible and organic yield.

Solution

ROME can only be minted via borrowing it on Puzzle Lend LP Market against any listed LP token, which currently are USDC-USDT LP from WX.network with 30% APY, 5pool and WEB pool from Puzzle, with 20% APY each.

The user can supply any of those LPs and “borrow” ROME against it at a fixed price of $1 and an interest rate of 5% APY. This is the only way to bring new ROME into circulation.

Potential use cases

ROME enables a range of interesting strategies on Waves. The three most promising ones are:

1. Leverage USDC/T farming:

Supply USDC-USDT WX LP and borrow ROME against it. Use ROME to buy more USDC/T and extend your position.

2. Long using WEB pool:

The WEB pool consists of WAVES, ETH and BTC. You can provide liquidity to this pool and use its LP token to borrow ROME on Puzzle Lend. Use that ROME to leverage your position in the pool, which basically means taking a long position.

3. Arbitrage ROME price:

Initial market for ROME will be provided by the team: we will launch the ROME/WAVES liquidity pool. You can monitor the market to use opportunities to buy ROME below 1 USD and sell above it.

Further plans for ROME include the introduction of organic APY for stablecoin owners, child DAO launch and soft-liquidations concept for peg guarantee. For now, ROME is launched as an MVP to figure out if there is a niche at the market which can successfully be filled.

Follow the updates in our Twitter: twitter.com/puzzle_network.