RollbackPrice

(ROLL)

Rollback (ROLL) is a decentralized, over-collateralized stablecoin designed to maintain a stable peg to the US Dollar. Beyond its stablecoin function, it also operates as a liquid staking protocol. This dual role means it provides both a stable financial asset and a mechanism for users to participate in network security through staking, earning a liquid token in return for their staked assets.

ROLL is generated through a specific process involving collateralization. Users deposit an accepted collateral asset into a designated smart contract vault on the Rollback protocol. Once the collateral is secured within the vault, the protocol allows users to mint or generate new ROLL tokens against their deposited collateral, effectively leveraging their assets to create the stablecoin.

The Rollback protocol serves two main primary functions. Firstly, it acts as the comprehensive platform for the minting and ongoing management of the ROLL stablecoin, ensuring its stability and operational integrity. Secondly, it functions as a liquid staking protocol. This enables users to stake various assets to contribute to network security, in return for which they receive a liquid token, specifically LCRO, enhancing capital efficiency.

The ROLL token serves as the primary governance token for the Rollback protocol. Holding ROLL grants users a voice in the future development and direction of the protocol. To exercise this influence, holders can lock their ROLL tokens, which then provides them with veROLL (vote-escrowed ROLL). This veROLL represents their voting power, allowing them to participate in proposals and decisions affecting the protocol's evolution.

Staking ROLL tokens in the Stability Pool is a critical mechanism designed to ensure the system's solvency and overall stability. Participants in the Stability Pool act as a backstop, absorbing debt from liquidated collateralized debt positions (CDPs), which helps maintain the peg of the ROLL stablecoin. In return for this vital service, stakers are incentivized with rewards derived from liquidation events and through the emission of governance tokens.

Expert assessments have identified potential security risks within the ROLL token's smart contract. Concerns arise because the contract invokes functions from other external contracts. This inter-contract dependency introduces various potential vulnerabilities, including risks such as reentrancy attacks, issues related to access control, and the inherent danger of relying on other contracts that may themselves be compromised or contain exploitable flaws.