What Is DeFi’s Purpose?
DeFi's primary goal is decentralization, which of course would give much more power and control to users instead of institutions. So the aim is to provide users access to financial services with low-cost transactions and secure ones.
2020 has been an exciting year for the DeFi sector. According to Defipulse, the total value locked in Decentralized Finance is $13.43 billion. This figure is evidence that DeFi has enormous potential.
However, Decentralized Finance (DeFi) can be considered still in its infancy, which means that many tests are being done and many mistakes can occur. Nevertheless, DeFi tokens continue to emerge, but experts continue to have doubts about whether DeFi will succeed or be just another "bubble".
What Are DeFi’s Most Common Issues?
No start is easy, and it is full of obstacles. During this drastic growth of DeFi, there have been many incidents and bad examples that have damaged this field’s reputation. For example, there have been Ponzi schemes, scammy projects, pump and dumps or as they are otherwise known "rug pulls".
In cryptocurrency, a rug pull occurs when the supply of an asset increases, while there is no sale, thus causing an increase in inflation. This phenomenon occurs in farmable projects that often generate many coins, but they are then not sold. Rug pulls are not good experiences for investors because they cause losses in their investments. In the tweet below, the crypto analyst, Josh Rager, shared the experience he had with a DeFi rug pull.
Just sold $15k worth of rug pulled assets for less than $20— Josh Rager ? (@Josh_Rager) October 7, 2020
Using the losses to count against capital gains for tax purposes this year
Something to talk to your accountant about if you got rug pulled too
Rootkit Finance Comes To The Rescue With Their Own Automated Market Maker (AMM)
Rootkit Finance is a "rugproof" project founded at the beginning of November in 2020. Members of Rootkit team “hacked” the Uniswap Automated Market Maker (AMM) by spoofing the underlying liquidity and now are working to create their own modified AMM version to upgrade the DeFi space into a better, safer space, where no rug pulls are possible.
Rootkit Finance is trying to improve things in the DeFi sector by making it possible that tokens launched through Rootkit will also have permanently locked liquidity and a vault to sustain development over a longer time, without needing to sell off team tokens.
Rootkit Finance has created the ERC-31337 token model to make this possible, which allows them to spoof the liquidity under the price floor to create a self-sustaining vault. Moreover, Rootkit Finance at the moment has no competitors. They are the creators of ERC-31337 protocol, and they are the first project to engineer a way to launch/trade with an unbacked floor.
A Decentralized Exchange (DEX) Is Under Progress
Rootkit Finance is aiming to make things more secure and efficient. Among many exchanges that exist already Rootkit Finance is launching their own Decentralized Exchange (DEX).
With the B2B program, if a developer wants to launch a token with Rootkit Finance, they will provide a self-sustaining vault and permanent liquidity locked with an unbacked floor. Plus, they can guarantee up to 72 hours of bullish pressure, for each token that chooses to launch on their launchpad. This is due to a customized & automated buy-back mechanic that will be embedded in their token generator.
With the B2C plan, if a developer wants to launch a token with Rootkit Finance’s launchpad or wants to trade on their Decentralized Exchange (DEX), their token will be secure rugproof.
Rootkit Finance Native Token Is Called ROOT
As part of the launch of Rootkit Finance is also its native token called ROOT. At the moment the price of ROOT is $652.19, and the token has a total market cap of $6,249,121 with a trading volume of $53,460, These numbers might not be big compared to other coins in DeFi sector, but the ROOT token is starting to get more attention.
ROOT price movements. Source: CoinGecko
DeFi is experiencing drastic growth, but many opportunities have emerged for scammers to put their skills to work in addition to growth. Numerous misuse methods, including rug pulls, came to the fore, causing huge losses to investors. Platforms like Rootkit Finance are always welcome, as they provide security for investors and developers while contributing well to DeFi's overall reputation. As DeFi and cryptocurrencies keep growing, such platforms contribute and make DeFi get the role it deserves in the world of finance in the future.