Sometimes, we find recursion in unexpected places. Shells, sunflowers, the Fibonacci sequence. Compound interest arises from the recursive, time-based activity of borrowers and lenders. What if you could utilize and leverage against this recursion, to gain exposure to potential market scenarios? This is Rollo.
What it does
Rollo utilizes a token liquidity provider to instantly swap a target asset back to your supplying asset on Compound. Utilizing Kyber ensures an instant token exchange and a fair rate. Users can leverage to their desired exposure level, repay their loans, and manage multiple accounts.
Rollo currently supports going Short/Long in two markets, WBTC and Ether:
- Short Ether (Supply Dai, Borrow ETH -> Convert to Dai via Kyber -> Re-supply Dai)
- Long Ether (Supply ETH, Borrow Dai -> Convert to ETH via Kyber -> Re-supply ETH)
- Short WBTC (Supply Dai, Borrow WBTC -> Convert to Dai via Kyber -> Re-supply WBTC)
How I built it
Rollo was built as a single-page app using a simple observable pattern (functions UpdateState/On) and Tailwind CSS. The smart contracts are written in Solidity and showcase the composability possibilities of the EVM message-passing paradigm, by calling both Kyber and Compound in single, atomic function calls.
Challenges I ran into
Time management! It can be tempting to get lost in testing, when front-end is very important. Also, always read documentation carefully so you know the expected behavior of a third-party API including side-effects.
Accomplishments that I'm proud of
- Learning more about Compound, and blending multiple technologies.
- Starting with a simple idea and naming/branding and continuing it's train of thought.
- Meeting others in the hackathon and hearing about their projects :)
What I learned
- Occam's razor is as important in coding and design as it is in Science - simplest is always best!
- Never be afraid to ask questions
- Carry strategies are as useful as trading strategies
What's next for Rollo
- I would love the opportunity to get a professional UX designer on-board with Rollo. Always happy to explore new structures and ways to utilize the concept, such as a re-structuring for margin trading or trade-able debt contracts.
- A test suite and main-net version
- P&L calculation that takes into account changes in the market price, and the ratio of supply to debt