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Introduction

ROTEO is a discount and yield token backed by Hard Reserves held onchain.

ROTEO has two jobs: discounts on Roteo products and staking yield. It is not currently used to pay for Roteo products.

A few contract rules turn trading and product demand into reserves, and reserves into yield and a price floor. These rules are enforced by the contracts, and anyone can read the numbers behind them onchain.

Three forms

  • ROTEO is the base token. It trades against USDG in the protocol-owned pool.
  • sROTEO is staked ROTEO. One ROTEO stakes into one sROTEO, and the balance grows every 8 hours. See Staking and yield.
  • wsROTEO is wrapped sROTEO. Its balance stays fixed while each unit grows in value, which is what the Discount Locker uses.

Price and Hard NAV

The market price is set by liquidity in the protocol-owned pool. Hard NAV is a separate figure: the reserves behind each ROTEO. sROTEO converts to ROTEO one for one, and wsROTEO converts at the staking index, so each carries Hard NAV through what it converts to. The premium is the market price relative to Hard NAV, and it is what bonds and premium sales respond to.

The flywheel

Demand for ROTEO brings buyers to the pool. The tax, bonds, premium sales and successful liquidity harvests move USDG into the Treasury, so Hard NAV per ROTEO can increase. Staking rewards can rise with it, which makes ROTEO worth more to hold and brings more demand. The floor bid is priced separately, from backing excluding the Strategy Sleeve.

Demand for ROTEOPoolTreasuryHard NAV per ROTEOStaking yieldbuy ROTEOtax, bonds, premium sales, harvestsreserves growyield may riseworth more to holdRoteo gatewaydiscountsMore productscoming nextbring demanddeployyield backStrategy Sleeve

Solid arrows carry money in, dashed arrows carry value back. Dashed boxes are planned. The floor bid sits outside the wheel: it is priced from liquid USDG and protocol-owned liquidity, without the Strategy Sleeve.

The parts

  • Tax: pool trades pay 2%, converted to USDG.
  • Bonds: deposit USDG for new ROTEO, never priced below Hard NAV.
  • Premium sales: above 2× Hard NAV, the protocol sells a little new ROTEO.
  • Staking and yield: stakers earn new ROTEO every 8 hours.
  • Lock and discounts: locked ROTEO earns discounts on Roteo products, starting with the gateway.
  • Treasury and Hard NAV: what counts as reserves, the genesis sale, and where new supply comes from.
  • Floor bid: a standing bid buys ROTEO below backing and burns it.
  • Liquidity harvest: the Team Safe can turn part of the pool's liquidity into reserves, never lowering Hard NAV.
  • Strategy Sleeve: how Treasury capital is deployed and marked.

Every number lives on one page: Parameters.

Roteo operations and ROTEO reserves are separate. Roteo's serving capacity, customer payment flows, prepaid operating costs and expected revenue are operating items, and none of them is included in Hard NAV. Only realized net contribution, after applicable costs and liabilities, increases Treasury reserves once it settles onchain.
Risk. ROTEO is not a deposit, a stablecoin or a share of Roteo's revenue, and staking rewards are variable, not a guaranteed return. Strategy Sleeve deployments carry smart-contract, bridge, custody, liquidity, oracle, counterparty and chain risks. The Team Safe can harvest protocol-owned liquidity from the pool. The USDG returns to the Treasury and a harvest can never lower Hard NAV per ROTEO, but a thinner pool moves more on each trade.
Introduction | Roteo