Rho Markets Q&A
In general
Q: What is Rho’s role in the Scroll ecosystem?
A: Rho aims to become Scroll’s unified liquidity layer, streamlining, strengthening, and skyrocketing liquidity across the entire landscape of Scroll’s ecosystem, including future Layer 3s.
Q: What makes Scroll unique from a technical standpoint?
A: Scroll is a groundbreaking zkEVM that utilizes zkSNARK-proof algorithms, ensuring privacy, scalability, and developer-friendliness. It is also considered the most secure ZK L2 solution.
Q: Why is Scroll well-positioned for DeFi protocols to move to L2?
A: Scroll offers significant advantages in terms of security and cost efficiency, which are key factors for DeFi protocols to build on Layer 2 solutions.
Q: What are the core services of Rho Market?
A: Rho Market primarily offers lending services for users, including lending and borrowing of LRT assets, as well as mainstream assets like ETH andstable coin. Users can also stake $RATE to earn higher yields.
Q: What are the standout features of Rho Market?
A: Rho Market stands out with its non-custodial architecture, providing users with complete control over their digital assets during lending activities. It also offers a user-friendly experience, robust security measures, on-chain governance, and integration with RWA (Real World Assets) like the corporate with Sign Protocol and Plaid.
Loyalty Rewards Program
Q: What is the Loyalty Rewards Program introduced by Rho Market?
A: The Loyalty Rewards Program introduced by Rho Market aims to create an accounting system for distributing future rewards in the form of RATE tokens. These rewards are earned through user participation in the Scroll ecosystem.
Q: How can users earn Rho XP Loyalty Points (RXP)?
A: Users can earn Rho XP Loyalty Points by staking $RATE or borrowing assets from the Rho Market lending pool. Additionally, when users borrow assets of a certain value, it will activate a corresponding pet NFT. These pet NFTs generate RXP over time based on the amount borrowed, and as RXP accumulates, the pet NFTs can level up and evolve, unlocking additional benefits and features.
Q: How will the Loyalty Rewards Program be divided into phases?
A: The Loyalty Rewards Program will be divided into three phases: the testing phase, mainnet phase 1, and mainnet phase 2. During each phase, different criteria will be used to allocate points to users, such as supply rate, borrow rate, number of users invited, and participation in airdrop activities.
Q: Why are soul-bound ERC-20 tokens (RXP) used in the Loyalty Rewards Program?
A: Soul-bound ERC-20 tokens (RXP) are used to track community contributions to the protocol and to ensure that the tokens cannot be traded on secondary markets as they currently hold no value. This helps in distributing rewards fairly in the future.
Lending:
Q: How does the lending process work in Rho Markets?
A: Rho Markets operates on an over-collateralization model, where users can supply assets, secure loans, and earn rewards in the form of RATE tokens. When users contribute liquidity, they receive LP Tokens representing their stake in the loan pool. The value of these tokens increases over time due to interest accumulation. Users can exchange their LP Tokens for their original deposit, which has appreciated in value, when settling their loans.
Q: How does the over-collateralization model ensure the security of loans?
A: The over-collateralization model ensures that borrowers’ loans are secured by assets of equal or greater value. This mitigates the risk of default and provides stability to the lending process. It also protects lenders’ funds by ensuring that borrowers have sufficient collateral to cover their loans.
Q: What is the Real Yield Layer in Rho Markets?
A: The Real Yield Layer in Rho Markets involves incentivizing users to add liquidity and perform swaps in the RATE/ETH pair on the DEX (Decentralized Exchange). Trading fees generated from these activities are returned back to liquidity providers (LPs), and those who add liquidity can mine more RATE tokens. Rho Markets also supports LRT Assets like pufETH, ezETH, etc., where users can stake or supply these assets and earn multi-layers of yields from EigenLayer and other LRT protocols.
Q: How are Scroll Points and Rho Points incorporated into the operations of supply and borrow in Rho Markets?
A: Scroll Points and Rho Points are added to all operations, including supply and borrow, in Rho Markets. These points likely serve as additional incentives or rewards for users who participate in these activities.
Safety module
Q: How does Rho Market ensure the security of funds and address risks associated with insufficient DEX liquidity or untimely oracle price feeds?
A: Rho Market has established a dedicated Safety Module, a smart contract-based system that incentivizes users to contribute RATE tokens and earn additional rewards. This module serves as a mitigation tool in case of smart contract risks, liquidation risks, or oracle failures. It ensures maximum security for users’ funds by providing compensation or subsidies of up to 30% to depositors who suffer losses due to market fluctuations or MEV (Miner Extractable Value) attacks.
Q: How does Rho Market attract liquidity providers and ensure security and user experience?
A: To ensure security and enhance the user experience, Rho Market will attract more liquidity providers and increase the Total Value Locked (TVL) through token subsidies and liquidity incentives. By offering these incentives, Rho Market aims to encourage the integration of LRT (Liquidity Referral Tokens) into the lending market, thereby increasing liquidity.
Q: What are some potential use cases of Rho Market?
A: Some potential use cases of Rho Market include:
1. Borrowing, supplying, and repaying funds through a bank account.
2. Withdrawing cryptocurrency directly from the contract to a bank account.
3. On-chain and off-chain financial reporting on Rho and combined protocols.
4. “My portfolio” feature that collects financial data and synchronizes with zero delay.
Q: How do you manage your timeline, such as the testnet, mainnet, and token release schedule?
A: We will roughly launch our mainnet at the end of this week and simultaneously conclude the testing phase. We will take a snapshot of all participating users on the testnet as proof for future distribution of RXP. The launch of the mainnet also signifies the most important stage of our loyalty program. Additionally, we will introduce more interesting features such as an invitation system and pet point cultivation. We will use RXP to incentivize more users to borrow and lend on our mainnet.
Quest №4 is lauched! After learn about us then you can come to complete the quiz and win your Quest №4 NFT! ⬇️
