Rootkit Finance Creates UpTokens: A New Frontier in Liquidity Mining


July 20, 2021, | AtoZ Markets-  It appears we wake up every day to new and interesting crypto projects trying to add more spark to the already shining crypto industry. 

Today, it is about Rootkit Finance creating UpTokens in a way to revolutionize yield farming and DeFi at-large. Rootkit Finance is a deflationary liquidity locked yield farming system that leverages permanently locked liquidity pools to open up new opportunities in liquidity mining. 

The system creates a price floor that ensures there is a minimum market price for tokens within the protocol. Rootkit was able to achieve this goal by combining the fixed-supply currency, permanently locked liquidity pools, and the pricing mechanism of a DEX’s Automated Market Maker (in this case, on Uniswap). The Rootkit protocol is designed to be fair to all participants as its liquidity pool is created with all possible supply inside the pool. 

Rootkit goes beyond what traditional platforms can provide to their users. Through UpFund, the team aims to bring Root DAO access to many disruptive finance products, services, and protocols. There’s also the SuperCharged NFT system, capable of upgrading common NFTs to SuperCharged non-fungible tokens, enhancing their appeal. 

Rootkit Finance UpTokens

In its bid to open up more opportunities in DeFi yield farming, Rootkit Finance is creating a new type of token called UpTokens. These tokens, which provide buyback opportunities for their pairs, allow liquidity miners to reuse liquidity in order to pump the price. Although these UpTokens have several use cases, their end result is to achieve the same goal, and that goal is “self-replication.” Imagine: liquidity pool where the tokens locked in that pool can replenish themselves and be reused over time. 

This is indeed a new frontier in liquidity mining, and many new projects will certainly spring up with the same mechanism. These UpTokens allow Rootkit Finance to utilize the locked liquidity in order to benefit the holders. As liquidity is injected into the pool, participants buy it back again and again, thus recycling value within the system. The UpTokens are designed for users to buy and hold; hence there is a tax on every sale but no tax on buyers. The performance of UpTokens against their pair will be tracked on UpMarketcap, a 1:1 mimic of Coinmarketcap.

There are twoRootkit Finance UpTokens currently deployed: upBNB and upTether (upUSDT). UpBNB can be bought on PancakeSwap V2 and upUSDT can be bought from uptether.finance on Polygon, both with a 0.5%-1% slippage to buy. 

There is a sales tax of 7%, which is relatively low compared with most tokens in this space at the time of writing. However, this sell slippage will increase to 16% immediately after a buyback takes place. The essence of the increase is to ensure there is no “pump and dump” of the price for either token. It then gradually returns to somewhere around 7% within a period of 5 days. 

The implication is that these UpTokens are designed to always go up in price as the strategic buybacks are used to prevent dips in price, as seen with the “traditional” cryptocurrencies. This creates a price floor that is always on the rise. 

Rootkit is looking to create 900 different UpTokens, building off of their groundbreaking work with , ROOT, UpBNB, and UpTether. The team has set their sight on the creation of UpMatic and UpCake as the next set of UpTokens.Tracking these UpTokens is a challenge the Rootkit devs have solved with their version of CoinMarketCap – UpMarketCap.com where a 1:1 map of coins and tokens can be referenced, as can the performance of UpTokens against their pair. 

The $ROOT of It All

We cannot discuss UpTokens without highlighting the place of Rootkit token ($ROOT) in the equation. The $ROOT token will serve as a governance token on the Rootkit protocol. All Rootkit holders will be eligible to vote on any new type of internal farming strategies and token releases on the system. A small fee is charged and paid to every liquidity provider token holder on the system for all transfers. 

The system is designed such that control is passed over to $ROOT token holders without compromising the system’s integrity. However, every vote passed will be subjected to a 24-hour delay where the team can cancel it if there is any reason to do so. Also, the veto power will be renounced after the tokens have been circulated to more Rootkit users. 

Taking DeFi Forward

In addition to their goal of creating new UpTokens, the Rootkit Finance team recently gained access to participate in the ETH Global Hackathon (Hack Money). 

Taking advantage of the new liquidity tools provided to developers with the release of Uniswap v3, it appears they already have everything working for them at the moment to build on their previous success and continue to revolutionize the rapidly growing decentralized finance sector. 

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