What is Rose?
Rose is a liquidity protocol on Aurora (Ethereum-compatible network) composed of a stableswap & wrapped assets exchange, and a unique borrowing platform that is made possible through it’s RUSD stablecoin. Rose aims to have deep and capital-efficient stablecoin liquidity on Aurora to enable users to seamlessly exchange between like assets as well as allow users to unlock untapped liquidity on our borrowing hub.
The mission is to get and maintain the position of the leading stableswap in the Aurora ecosystem. The idea is to unlock liquidity in different corners of market by using RUSD and when the capital and influence will grow enough, use them in another DeFi directions by DAO. The company also believes that the future is cross-chain and Rose will certainly embody this vision in it’s strategy. So long-term goal is to make RUSD one of the most adopted stablecoins in the DeFi space.
A stableswap is a product which allows users to swap one stablecoin with another. The goal is to allow for the seamless integration of a wide variety of stablecoins in the ecosystem, and a well-functioning stableswap is integral to the success of a thriving DeFi ecosystem.
Rose’s stableswap is inspired by Curve swap and it has it’s Automated Market Maker (AMM) model integrated. One of the goals is that when trading like assets trader doesn’t experience so-called negative slippage (a loss due to a difference between the price before the user had their trade validated and the price at which the user actually finalized the trade). To achieve it, unlike a Uniswap fork, Rose uses a Hybrid-Constant Function AMM (CFMM) - the algorithm that decides how to best allocate the LP’s funds to facilitate a trade.
At present, Rose only has stablecoins tracking the US Dollar, but in company they are hoping that in the future, stablecoins pegged to other major fiat currencies (Euro, Japanese Yen, etc.) and cryptocurrencies (BTC, NEAR) will also be able to be traded.
The current stablecoins available for trading are: USDC, USDT, DAI, FRAX, UST, MAI and BUSD.
About RUSD - Rose Dollar and it’s lending features
Rose Dollar (RUSD) is a USD-pegged stablecoin that is equal to 1 USD and intends to become a leading stablecoin in the Near-Aurora ecosystem and beyond. The process goes in the next steps:
- A user holds some form of token in their wallet that may or may not be interest-bearing, meaning they accumulate some form of value.
- The user enters a lending mechanism. Now, the user can put these tokens to use by taking a loan against them.
- The user can use the RUSD for whatever purpose they want. A popular strategy is to take that RUSD and reinvest it into the strategy that gave them the interest-bearing token they just used to take the loan. This can be done numerous times and is called a “looping” strategy, which may amplify the user’s gains
Note that lending for RUSD doesn’t only support interest-bearing tokens. The lending market for RUSD can theoretically have any token as collateral.
Why it is useful?
Projects like Rose are filling open niches, which is driving the development of DeFi in general. The project itself solves the problem of loss of assets value during a swap by applying up-to-date algorithms and provides it’s own stablecoin with a great lending system, building its own ecosystem around it. Also, the use of a flexible strategy and DAO allows the company to optimize the process of achieving results and improve it.