🎋$ROOTS Token
Fitting for the Forest Financial ecosystem, $ROOTS is a new token designed to generate a guaranteed profit if held long-term. This offers sustainable, low-risk, medium rewards for investors.
A treasury of stablecoins will be created which functions as the liquidity pool for this token. By capitalizing on the purchasing and selling of the token, and investing the liquidity pool into safe investment options, we guarantee an increase in token price over time.
Purchase
The $ROOTS token can only be bought from the Forest Financial protocol. Our internal swap platform facilitates swapping $FOREST for $ROOTS and vice versa.
The backing price is the total value of the $ROOTS treasury divided by the tokens in circulation.
Every time $ROOTS is bought from the protocol a new token is minted. Every time someone sells $ROOTS, it is burned.
Supply & prices
The buy price is the Backing price times 1.2 plus the Growth Factor.
The sell price is the Backing price times 0.9 minus the Growth Factor
Treasury & starting supply
The $ROOTS treasury holds USDC, which increases as more $ROOTS are minted.
Starting treasury USDC: $1000
Starting supply: 100
Starting price: $10
Only a small treasury size is required to kickstart $ROOTS.
The starting supply of $ROOTS is inaccessible and won't be touched.
Growth Factor
The Growth Factor is the value of two times the number of tokens bought over the last five days, divided by the total number of tokens existing five days ago and capped at a maximum of 0.3.
Meaning that the Buy price is a maximum of 1.5 times the Backing price and the Sell price is a minimum of 0.6 times the Backing price.
Increasing the Backing price
As the price of this token is promised to only go up, we need to explain what mechanics make this happen.
The protocol increases the Backing price by:
Capitalizing on the difference of the Buy price and Sell price vs. the Backing price.
Getting a return on investment on the $ROOTS treasury, which grows as more tokens are minted.
The ecosystem
In order to buy $ROOTS you will need the $FOREST token.
By purchasing other items in the Forest Financial ecosystem, you will benefit from discounts on the buy- & sell price.
The NFTs are stackable and are only required to be in the wallet of the investor. Connected Core NFTs count as well.
Every wallet has a maximum discount of 6% on the Buy and Sell price of the $ROOTS token.
Internal swap mechanic
To further increase the benefits of existing investors, unclaimed $FOREST generated by YieldTrees can also be swapped for $ROOTS via our swap mechanic. This is tax-free and provides a way for the investor to grow their capital with generated $FOREST.
Because of how $ROOTS works, this method can not be used as a quick attempt to avoid claim tax.
How does Forest Financial as a whole grow from $ROOTS?
Fees from our internal swap system are directed towards the main treasury and the $FOREST/AVAX liquidity pair.
Added exposure of $FOREST as it is a requirement to purchase $ROOTS.
Risk profile
The $ROOTS token is created for low-risk investments. Due to the nature of stability of stablecoins, the only possible risks are the following:
Contract hacks
USDC depegging & crashing
Find out more
Watch this video as Pim, our founder, takes you through our $ROOTS calculator, to highlight how safe this investment opportunity will be.
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