Introducing Sprout: Root’s Comprehensive Operating System For DeFi

TL;DR

• Sprout is an Operating System for DeFi, which emerges out of the network of Stem protocols created by Root’s DeFi Lab, Bloomworks
• It is designed to create a “Robinhood of DeFi”, bringing all DeFi products and services under one roof
• In doing so it will deliver an accessible, streamlined, and integrated “one-stop shop” experience for DeFi users
• So, Sprout provides Root with a realistic, gradual model for capturing the whole DeFi market and delivering outsized revenues back to its stakeholders

Introducing Sprout

In the run-up to the imminent launch of the Root dApp and the ROOT Token Generation event, this article shares more about Root’s vision for developing a comprehensive Operating System for DeFi. In Part 1 of Sprout Academy, we explained how the Orchard Omnichain Governance Aggregator generates a perpetual revenue source for the Root ecosystem. Then in Part 2, we explained how Root’s in-house DeFi Lab, called Bloomworks, uses portions of this revenue to create Stem protocols that solve high-EV DeFi market inefficiencies. The ultimate endgame however, is to integrate all Stem protocols into a single Operating System that provides a “Robinhood Of DeFi” experience for users. This Operating System will be called Sprout, and in this article, we’ll explain how it works…

What Problem Is Sprout Solving?

Currently, participation in DeFi requires a level of technical know-how beyond the scope of the average consumer. DeFi services are spread across multiple disparate chains and protocols, which makes them challenging to use, and often redundant or duplicative. As a result, users are faced with complex, disjointed experiences and there is no one central location where they can access all the DeFi products and services with simple, standardized user journeys.

Now of course, attempting to build a single, integrated Operating System for DeFi all at once would be all but impossible. This is why Root has developed the unique Root & Stem model to gradually build it out piece by piece. Root’s Bloomworks DeFi lab identifies high-EV DeFi market inefficiencies and then creates Stem protocols that simultaneously solve these problems and provide revenue for the Root ecosystem. Examples of these Stem protocols to date include Torus, Cordyceps, and Codex. Initially these Stem protocols operate as separate, independently-accessible dApps. However, from the very beginning, they are guided by Bloomworks to ensure there is a simple, standardized user experience shared by all Stem protocols. This lays the groundwork for them to be eventually integrated into a single Operating System. This is where Sprout comes in…

How Sprout Integrates Stem Protocols Into A Single Operating System For DeFi

Sprout is the final piece in the puzzle for Root’s plan for going beyond short-term revenue generation towards total DeFi market domination. Sprout is the DeFi hub that ultimately emerges from the ecosystem of Stems created by Bloomworks. It is designed to create a “Robinhood of DeFi”, bringing all DeFi products and services under one roof to deliver an accessible, streamlined, and integrated user experience. It achieves this through an entirely novel process for creating a DeFi ecosystem, which works in 5 phases:

1. Prototyping: Bloomworks develops each Stem protocol independently, with an original and distinct UI such that the dApp is immediately and independently accessible to new users, instead of being hindered by pending design adjustments.
2. Streamlining: Once a Stem is up and running, it is then seamlessly integrated within Root’s standardized UI/UX templating process. This process ensures each individualized dApp and its corresponding features are appropriately streamlined and integrated within Root’s overall vision.
3. Integration: With the standardization of the user experience in-place, each Stem is then upgraded to make it ready to sprout into a fully integrated dApp in the Sprout Operating System. The upgrades ensure that the features of each stem in the Sprout Operating System are uniform and intuitive throughout.
4. Continuous Upgrades: Finally, each dApp in the Sprout ecosystem is regularly upgraded and consolidated to ensure a unified experience and deliver features that are uniform and intuitive throughout the platform.
5. Network Effects: The end result is a unified one-stop shop for DeFi that offers the full range of DeFi services all under one-roof. This creates a network effect, which drives increased revenue generation opportunities for each individual dApp. These increased revenues can then be distributed back to the Root ecosystem, delivering the kind of outsized returns that only a comprehensive operating system for DeFi can offer.

This process provides a genuinely realistic model for developing a comprehensive Operating System for DeFi. In comparison to a model where a project might try to build out a DeFi Operating system all at once from scratch, the Sprout model offers several benefits, including:

1. No Single Point Of Failure: Because Stems are initially developed in isolation and then integrated in a modular way, this means there is no single point of failure. If there is an issue with one Stem therefore, this need not turn into a systemic issue for the Sprout Operating System as a whole.
2. Stems Generate Revenue Before They Are Integrated: A project trying to build an Operating System for DeFi from scratch would only start generating revenues once the entire system goes live. By contrast, Sprout’s model means each individual Stem can start generating revenue as soon as it is ready. This means Root has a variety of revenue streams from Day 1, which in turn can fund the development of further Stems and Sprout itself.
3. Each Stem Brings A New User Base To Sprout: Because a single Operating System for DeFi doesn’t currently exist, users are used to working with different apps for their different DeFi needs. Stem protocols meet the market where it is by providing individual solutions to specific needs, thereby each developing their own unique user base. As each Stem is integrated into Sprout, it introduces a whole cohort of new users into the Sprout ecosystem allowing it to organically develop a broad user base.
4. All Sprout Features Are Market-Tested From Day 1: Each piece of functionality in Sprout will originally have operated as an individual Stem. This means that by the time it is integrated, it will already be market-tested. Stems that fail to achieve market adoption need not be integrated into Sprout. This means Sprout will have no redundant features and only offer the best of the best in terms of functionality.

How To Get In On The Ground Floor & Become A Stakeholder In DeFi’s Most Ambitious Project

With the Root dApp going live shortly, there is an opportunity for you to get in on the ground floor and become a stakeholder in DeFi’s most ambitious project. All you will need to do is become a veROOT token holder. To do this, follow a simple 3 stage process:

1. Buy ROOT tokens: Once the dApp has launched, you will be able to buy ROOT tokens by heading over to the dApp and purchasing a Root Bond. Alternatively, you will be able to buy ROOT tokens on the open market on either the Balancer 80/20 ROOT/ETH pool on Ethereum, or the Uniswap v3 pool.
2. Stake Your ROOT Tokens To Receive veROOT: The next step will be to go to the Staking section on the Root dApp and stake your ROOT tokens, in return for which you will receive veROOT tokens.
3. Watch The Yields Start Rolling In: Root protocol does everything for you from there! You can watch your passive yields start accumulating in the form of esROOT, the escrowed version of Root, which is redeemable 1:1 for ROOT tokens. The following graph gives an estimate of the APR for veROOT holders:

There will also be a veHyperStake event taking place for the first 3 days after launch. Any user who converts their ROOT into veROOT during these first 3 days will receive doubled APR for the whole year!

Conclusion

So, as you can see, a bet on Root is a bet on the whole DeFi market. Whereas other protocols seek solutions to specific niche DeFi market opportunities, Sprout provides Root with a model for capturing the whole market. Furthermore, this model is based on a unique, gradual development process that offers a realistic path for delivering on such an ambitious goal.

We can’t wait to welcome you into the Root ecosystem with our fothcoming launch coming soon. Until then, you can discover more by browsing our docs and joining the Root Discord community.