💰Treasury

The Treasury at Rome Finance is integral to the financial health and strategic growth of our platform. It functions as the economic cornerstone, providing the necessary financial oversight and resource allocation to ensure stability and promote scalability within the ecosystem.

Strategic Objectives and Management

The primary goal of the Treasury is to maintain financial stability, allowing the protocol to operate effectively under varying market conditions. To achieve this, the Treasury accumulates funds from multiple sources, including:

• Transaction fees: 10% sell tax

• Strategic Mints sales, which provide significant capital to strengthen reserves

Beyond these core functions, the Treasury also serves a broader purpose—investing in SonicLabs’ new protocols to expand Rome Finance’s reach and capitalize on emerging DeFi opportunities. These strategic investments drive protocol growth while generating additional returns that benefit the entire ecosystem.

Proof of Burn Mechanism

The Proof of Burn mechanism is central to the treasury's strategy for managing the supply of $ROME tokens and ensuring their value. Participants can burn their $ROME tokens to access unique benefits such as real-yield and governance rights. This mechanism is particularly important during price fluctuations:

• During Price Dumps: The treasury provides incentives for users to burn tokens, which helps decrease the circulating supply and stabilize the token's price.

• During Price Pumps: Users can utilize the minting feature to buy back a percentage of their burned tokens at a discount, fostering continued participation and investment in the protocol.

The tokens received through these interactions can be staked directly for regular or burn staking returns or converted into LP tokens for more significant strategic involvement. These LP tokens, once created, are burned to enable access to enhanced yields and increased governance capabilities through what we term as "Smart Compounding."

Treasury Farming & Yield Redistribution

To further strengthen the ecosystem, the Treasury actively farms real yields across DeFi protocols on SonicLabs such as ShadowExchanfe, Aave, Pendle and more. These yields are then redistributed to:

• $bROME holders, rewarding their long-term commitment

• LP Creators using the Mint Function, incentivizing deeper liquidity participation

By leveraging its resources for yield farming, the Treasury ensures a sustainable revenue stream that continuously fuels growth, stability, and rewards for Rome Finance participants.