What Is KeeperDAO (ROOK)?

KeeperDAO is a decentralized platform for keepers that seeks to help keep Ethereum more secure, profitable, and democratic for every user. Keepers are bots that keep an eye on Ethereum and other blockchains to facilitate transactions like system upkeep, auctions, liquidation, and arbitrage. 

KeeperDAO is a game theory protocol designed to bring in maximum on-chain profit, be it in the form of arbitrage or liquidation. On-chain transactions are cryptocurrency transactions that are executed on a blockchain network. There platform aims to achieve this profit in the following ways:

1. Hiding Game: In the Hiding Game, users and keepers cooperate to hide MEV (miner extractable value) by wrapping their trades in specialized on-chain contracts. MEVs are profits extracted by miners after recognizing blocks, reordering transactions, front-running, and tailgating. One thing to note about these on-chain contracts is that they only allow profit opportunities to be extracted on the KeeperDAO platform. This saves ‘keepers’ in the KeeperDAO from competing with keepers and miners outside the network. 

2. Coordination Game - The Coordination Game is a monetarily incentivized game between keepers, where coordination is the only strategy to survive. The idea is to eliminate the competitive nature of the priority gas auctions (PGA) and instead motivate keepers to take turns extracting all the profit from MEV opportunities. PGA is the competition between keepers to prioritize their transactions. Keepers share profits among each other to incentivize coordination because profits increase when PGAs don’t exist. 

3. Incentive Game - the Incentive Game aims to motivate specific user behavior to promote active governance and provide liquidity.

ROOK is the native ERC-20 token of KeeperDAO, which is the core element behind this game. The profits in the hiding and coordination games get paid back in the form of ROOK token, to encourage keepers to participate in the coordination game and share profits with other keepers.

Other utilities of the ROOK token aim to include governance of the platform, governance of all the profits and voting on how to use them, managing all the parameters like keeper fee, liquidity fee, the shape of ROOK emission curve, etc. Moreover, the token seeks to give holders the power to suggest changes and upgrades to the platform. 

History of KeeperDAO

The maximum total supply of ROOK tokens is 800,000 coins.