ROME explained

ROME overview, minting instructions, utility, and benefits.

What is ROME

ROME is an overcollateralized stablecoin built on top of Puzzle Lend. ROME also utilizes Puzzle Swap mega pools and WX Network mechanics, which generate organic income for ROME holders.

Asset ID: AP4Cb5xLYGH6ZigHreCZHoXpQTWDkPsG2BHqfDUx6taJ Trade: Puzzle Swap Mint: Puzzle Lend ROME Market

How to mint ROME

To mint ROME, first provide collateral on the Puzzle Lend ROME Market.

1. Deposit liquidity to one of the following pools:

   • USDC-ERC20/USDT-ERC20 Pool on WX Network (disable the option Stake straight after the deposit)

   • WEB Pool on Puzzle Swap

   • Units Pool on Puzzle Swap

   • Waves 5pool on Puzzle Swap

2. If you provided liquidity on Puzzle Swap, click LP Staking on the pool’s page and unstake your LP tokens to get them into your wallet.

3. Go to ROME Market page and supply your LP tokens.

4. Click Mint next to ROME.

5. Specify the amount of ROME to mint. Take into account your Account Health: we recommend keeping it at least 20%.

Supplying and withdrawing WX LP tokens may be temporarily unavailable due to counting of votes for the WX Emission distribution. It usually takes a few hours.

Your profits

➕	When holding ROME, you receive dividends directly to your wallet each 4 hours. Alternatively, you can provide ROME into a Puzzle Swap mega pool, such as ROME!, and earn the pool’s rewards.
➖	You are charged 5% Borrowing APR for ROME you minted. (However, ROME dividends you receive are normally higher).
➕	Your supplied amount of LP tokens grows steadily thanks to re-investing 50% of yields generated by the underlying liquidity pool.

How ROME Market works

ROME Market on Puzzle Lend is a market with special properties serving the ROME mechanics.

• LP tokens provided as a collateral to ROME Market are staked on WX or Puzzle Swap respectively.

• Yields generated by LP staking are claimed and distributed as follows:

• 50% are converted to LP tokens and compounded, forming the Supply APY

• 20% go to Puzzle reserve to be manually spent on PUZZLE buyback

• 30% are converted to ROME and distributed proportionally between ROME holders (except non-Puzzle liquidity pools containing ROME).

ROME usage

• Firstly, simply holding ROME in your wallet entitles you to receive dividends.

• ROME can be used like any other cryptocurrency for trading, sending to others, etc.

• You also have the option to invest ROME in Waves-based DeFi services, including Puzzle, WX, and Swop.fi, to earn rewards.

Q & A

How many ROMEs can I mint?

For ROME to be overcollateralized, the value of LP tokens supplied must be greater than the value of ROME minted (=borrowed).

In more detail, the available value to borrow depends on the following parameters:

• CF (Collateral Factor) parameter of the LP token you supply

• LT (Liquidation Threshold) parameter of the asset you borrow

• MAH (Minimum Account Health when borrowing)

For ROME, Liquidation Threshold = 100% and MAH = 1%. To see the Collateral Factor for your LP token, click its name on ROME Market page.

For example, if you provide $100 in LP token with CF of 60%, you are able to mint

100 × (1 – MAH) × CF × LT = 100 × 0.99 × 0.6 × 1 = 59.4 ROME.

However, we recommend keeping your Account Health at least 20%, so the optimal amount of ROME to mint is

100 × 0.8 × 0.6 × 1 = 48 ROME.

Can I get back the collateral I have provided?

Sure, you can repay ROME, and then you will be able to withdraw your collateral.

Can my position on ROME market be liquidated?

Yes. If your Account Health for ROME Market goes below 0%, your loan will be partially liquidated with a liquidation penalty deducted from your collateral. This measure preserves ROME’s overcollateralization.

Can ROME depeg?

Although the market price of ROME may slightly differ from $1, it always tends to return to the peg thanks to overcollateralization. Also, our nearest plan is to implement the algorithm called ROME Keeper to peg the price more reliably.