There are some BIG changes coming to @GainsNetwork_io, gTrade🍏 and $GNS!
Gains Network is about to launch on Arbitrum - but this is just the tip of the iceberg🌋
Here's what's about to happen and why this is huge for the decentralized perp narrative🧵 1/11
Gains Network is about to launch on Arbitrum - but this is just the tip of the iceberg🌋
Here's what's about to happen and why this is huge for the decentralized perp narrative🧵 1/11
2/ I listened to the Twitter space hosted by Arbitrum and @GainsNetwork_io where a lot of alpha was shared including:
‣ Launch date
‣ New DAI vault
‣ New yield bearing stablecoin?!
‣ And more
Here's the Tl;Dr
‣ Launch date
‣ New DAI vault
‣ New yield bearing stablecoin?!
‣ And more
Here's the Tl;Dr
3/ - CURRENT STRUCTURE -
Currently, the DAI vault is used as collateral for traders. When they make money, DAI from the vault is given to them. When they lose, DAI is added to the vault.
The collateralization ratio is therefore always fluctuating and sits at 111% currently.
Currently, the DAI vault is used as collateral for traders. When they make money, DAI from the vault is given to them. When they lose, DAI is added to the vault.
The collateralization ratio is therefore always fluctuating and sits at 111% currently.
4/ When the CR is above 130%, excess DAI is used buy and burn $GNS.
The DAI vault receives 40% of the closing fee from traders. Therefore liquidity providers are incentivized with real yield paid out in $DAI to be the counterparty to the traders on gTrade.
The DAI vault receives 40% of the closing fee from traders. Therefore liquidity providers are incentivized with real yield paid out in $DAI to be the counterparty to the traders on gTrade.
5/ - UPDATES -
The largest upgrade is the new DAI vault. Users deposit their DAI and receives gDAI in return!
gDAI will open a ton of opportunities to earn high yield on a stablecoin by other defi protocols integrating this new asset.
The largest upgrade is the new DAI vault. Users deposit their DAI and receives gDAI in return!
gDAI will open a ton of opportunities to earn high yield on a stablecoin by other defi protocols integrating this new asset.
6/ You will as a liquidity provider be able to
‣ Borrow against this token
‣ Stake it somewhere else
‣ Deposit it into a liquidity pool
‣ Or something completely different!
- All while still earning the yield coming from fees from traders on gTrade🍏
‣ Borrow against this token
‣ Stake it somewhere else
‣ Deposit it into a liquidity pool
‣ Or something completely different!
- All while still earning the yield coming from fees from traders on gTrade🍏
7/ This essentially allows for some potentially crazy yields on DAI (double-yield).
As far as I could understand, the gDAI/DAI swap rate will increase over time similar to many liquid staking tokens.
gDAI is in its essence a representation of your share of the DAI vault.
As far as I could understand, the gDAI/DAI swap rate will increase over time similar to many liquid staking tokens.
gDAI is in its essence a representation of your share of the DAI vault.
8/ This is about all we know about the gDAI token so far. I'll keep you posted however so follow me (@ThorHartvigsen) to stay up to date.
Other news include:
‣ Commodities integrated on gTrade at some point post Arbitrum launch
‣ $100k trading contest on Arbitrum
Other news include:
‣ Commodities integrated on gTrade at some point post Arbitrum launch
‣ $100k trading contest on Arbitrum
9/ The launch on Arbitrum is roughly 3 weeks away. The DAI vault still needs some finalising in terms of audits and the front end as well.
Finally, there will also be some structural changes to $GNS👇
Finally, there will also be some structural changes to $GNS👇
10/ Currently $GNS is minted to incentivize the GNS/DAI vault on Quickswap.
Going forward $GNS will be minted and sold OTC to other projects to collateralize the DAI vault if it becomes under collateralized. Max minting is capped at 20% inflation/year.
(Proposal from Gains team)
Going forward $GNS will be minted and sold OTC to other projects to collateralize the DAI vault if it becomes under collateralized. Max minting is capped at 20% inflation/year.
(Proposal from Gains team)
11/ This prevents a death-spiral for GNS as it is sold OTC and capped at 20% inflation in a year (worst case scenario).
So far the vault has had no problem staying over collateralized however as traders are quite skilled at losing money.
So far the vault has had no problem staying over collateralized however as traders are quite skilled at losing money.
That's all I had for now! Very excited for the future of @GainsNetwork_io!
If you enjoyed the thread make sure to like and retweet the first post.
And give me a follow :D (@ThorHartvigsen)
If you enjoyed the thread make sure to like and retweet the first post.
And give me a follow :D (@ThorHartvigsen)
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