KeeperDAO
The KeeperDAO project was first revealed in December 2019, as a joint effort between Amber Group and Talo Systems. Amber is Kullander's crypto trading and market-making firm, and Talo is a blockchain research firm run by Taiyang Zhang, who is also the CEO of DeFi protocol Ren.
KeperDAO was a protocol that economically incentivizes pooled participation in ‘keeper’ strategies which manage liquidations and rebalances on applications spanning margin trading, lending and exchange. This allows participants to earn passive income in a game-theory-optimal fashion whilst ensuring decentralized finance applications remain liquid and orderly.[1]
KeeperDAO project is now known as Rook Protocol
Overview
At a high level, KeeperDAO enables users to pool capital into Ethereum smart contracts to collectively profit from on-chain arbitrage and liquidation opportunities. Capital staked in these pools, such as USDC and DAI, is then used to exploit on-chain profit opportunities presented by protocols such as Compound, dYdX, MakerDAO and DDEX. These opportunities are not always present and occur often in times of high volatility. To mitigate having a large pool of capital being underutilized, all assets held by the liquidity pool are also constantly loaned out on markets such as Compound and dYdX.