Rock3T: Launch-ready

Rock3T is a DeFi that seeks to satisfy the same market as Bitcoin but natively on Ethereum

Paul Scott - Degen.VC

Published in

Rock3T

6 min readJan 13, 2021

Rock3t Explainer Video

It is January 2021, and Bitcoin is c.2X above its ATH, without any signs of slowing down. Despite the profound innovation of Uniswap, new tokens mostly look like weeds in a garden occupied by two roses: Bitcoin and Ethereum.

Hanging in the air is a sense that surely a new giant can emerge from such a rich garden. Crypto’s hope for such a giant is evidenced by the large volume of liquidity invested in new economic experiments that emerge in the DeFi space. Many of these “experiments” result in disaster. Lessons are learned and the breakthrough feels like it is getting closer every day.

Introducing ROCK3T

ROCK3T leverages a smart contract we call the Liquid Vault that supports three “T”s:

Trustlessness: Variable LP lock periods dependent on system health;
Truth: Perpetually locked LP dependent on price strength; and
Toughness (antifragility): Embedded Token buying pressure.

Below we will explore the 3T’s in detail, but first, a quick overview of our LiquidVault smart contract.

LiquidVault

A user sends ETH to the Liquid Vault to pool them with R3T tokens that the contract holds. They receive LP at a discount that is locked for an algorithmically determined period of time. This period reduces as the system health improves — system health is defined below.

The Liquid Vault uses the following economic levers:

When a user sends ETH to Liquid Vault it takes a percentage [ETH Fee] and auto-swaps this for R3T on Uniswap.
The remaining ETH is pooled with R3T to create LP tokens.
These LP tokens are returned to the user after a Lock Period.
Prior to receipt, a percentage, called the LP Donation, is deducted from the LP and sent to a 0x address i.e. locked forever.

T-One: Trustlessness — Variable LP lock periods dependent on system health

After someone sends ETH to Liquid Vault to get LP, it keeps LP for a period of time before the user can claim it.

DeFi is familiar with lock periods being fixed with staking rewards being farmed accordingly, but in Rock3T, as the system health improves, everyone’s lock period reduces autonomously. This is because when a user tries to claim their LP the smart contract checks system health to determine if the current lock period is lower than the period of time that has elapsed since the user sent ETH to Liquid Vault. If it is, they can claim their LP.

System Health is measure as follows:

Health = ETH squared divided by tokens (both Uniswap pool measures)

Example: Bob purchases LP and the lock time is 1000 blocks and 400 blocks elapse. Then the lock time falls to 300 blocks. Bob can immediately claim his LP because he is now 100 blocks ahead of what he needed.

The initial starting lock period is set to 45-days and varies autonomously.

Lock period is calculated using this formula.

H = system health
L = lock period
Beta = steep factor
Lmin = minimum lock period
Lmax = maximum lock period
e = exponent

**Lock period varies according to improving system health.**

You can edit the parameters here https://www.desmos.com/calculator/7my7feugcp

T-Two: Truth — Perpetually locked LP dependent on price strength

When someone claims their LP (after the lock period), a smart contract sends a percentage to the zero address u a function called LP Donation. This donation is locked permanently and contributes to the underlying strength of the system because the liquidity can never be removed. The donation percentage decreases as the R3T’s ETH price increases.

Example: Jane purchases LP by sending ETH. A percentage is sent to the zero address, and this percentage varies according to R3T’s ETH value.

The initial starting percentage is set to 5% and varies autonomously according Rock3T’s price strength.

d = current permanent lock percentage
dmax = maximum permanent lock period
p = normal R3T token price in ETH
b = calibration coefficient; alpha = 1

**Permanent Lock period is variable according to price strength.**

T-Three: Toughness (antifragility) — Embedded Token buying pressure

At the heart of Rock3t is the creation of steadily increasing buy pressure as confidence in the system increases.

When a user sends ETH to Liquid Vault, part of it is not pooled to create LP. Part of it — called the ETH Fee- is swapped for R3T on Uniswap. ETH Fee varies with R3T in the Uniswap Pool. The ETH Fee and therefore buy pressure increases with the amount of R3T tokens in the Uniswap pool.

Example: Alice can get LP tokens by sending ETH. If the quantum of tokens in the Uniswap pool is low, the ETH fee will be low so Alice practically gets LP tokens at no cost. When the number of pooled R3T increases, the ETH fee autonomously increases so the cost of Alice’s LP increase but the buy pressure also goes up.

The upper bound for ETH Fee is set at 40% and varies autonomously according to the quantum of R3T tokens in the Uniswap pool.

F = fee, i.e. the percentage of incoming ETH used to buy tokens from the pool
T = token reserves in Uniswap pool

a, b, c & d are calculated below:

Tmax = maximum token reserves
Fmax = Maximum fee

Token design & Tokenomics

R3T token

— Total fixed supply: 11,000,000
— Decimals: 18
— Standard: ERC20
— Fee On Transfer: Yes.
— FOT destination address owned (changeable): Yes
— FOT amount owned (changeable): Yes
— Token name: ROCK3T 3t.finance
— Token symbol: R3T
— Mint function: No
— Burn function: Yes

Token distribution:

— 400,000 to be #alphadropped to DGVC LP.
— 550,000 to be deposited into LiquidVault + uniswap market creation.
— 50,000 to Degen.VC
— 10,000,000 to Treasury locked Gnosis vault . This will be utilised as described below.

The Rock3T Treasury

In order to future proof Rock3T, a Treasury has been established that will initially be governed by a multi-sig. The Treasury will be funded with 10m R3T tokens out of a total supply of 11m R3T. A detailed note on the Treasury can be found here.