What is GND Protocol? GND Protocol is the parent protocol of gmUSD, a fully supported, yielding Stablecoin built on Uniswap V3’s liquidity engine, farm. gmUSD and GND Farm are the two main products that GND Protocol provides.
So what is GND Protocol? How does it work? Let’s find out in this article!
To understand more about GND Protocol, you can read the following articles:
- What is GMD Protocol (GMD)? Overview of GMD Protocol Cryptocurrency
- What is Gains Network (GNS)? Gains Network Cryptocurrency Overview
- Operating mechanism: Uniswap – From challenger to unique position
- Series 3: Real Builder in Winter | Uniswap – The True Unicorn Cryptocurrency Ever Produced
- Uniswap Ecosystem: When Providing Liquidity Becomes a Protocol Strategy
What is GND Protocol?
Overview of GND Protocol
GND Protocol is the parent protocol of gmUSD, a fully supported, yielding Stablecoin built on Uniswap V3’s liquidity engine, farm. gmUSD and GND Farm are the two main products that GND Protocol provides.
GND Protocol was created with the purpose of redistributing RealYield resources to users and holders of the project’s governance token, GND.
GND Protocol will earn Real Yield Revenue in gDAI and gmUSD from the following sources:
- gmUSD arbitrage: GThe GND protocol will arbitrage the market when people trade with their gmdUSDC or gDAI.
- Uniswap v3 transaction fees of protocol-owned liquidity: Similar to GMD, the GND protocol will distribute collected fees through GND traders on Uniswap V3.
- Uniswap v3 fees from pairs on liquidity tools: Similar to other AMMs that collect trading fees, trading fees on the governing protocol’s Uniswap V3 pairs are collected as revenue.
Mechanism of action
GND Protocol provides 2 main products: Stablecoin gmUSD and GND Farm:
- Stablecoin gmUSD: gmUSD is Stablecoin fully backed by gDAI and gmdUSD. The supply of gmUSD can be managed by minting and redeeming as part of cThe protocol’s smart arbitrage mechanism (PSALM).
- GND Farm: The initial goal of the GND farm is to incentivize gmUSD, GND and GMD. However, the project sees that the potential can be expanded to other pairs across the Arbitrum ecosystem. GND Farm will launch with partner pairs of GND and GMD. GND Farm will create a revenue stream for GND and xGND bettors.
GND Token Deflation:
- Buy back and burn: A portion of the protocol’s income (60-80%) is dedicated to buying back and burning GND, aiming to create constant buying pressure on it.
- Convert xGND: When converting xGND to GND, if the vesting period is not the maximum, the xGND:GND ratio will be lower than 1:1, down to a minimum of 1:0.5. All excess GND will automatically be burned. For example, if a user exchanges 1000 xGND within a period of 20 days, he will receive a ratio of 1:0.5 and eventually receive 500 GND.
- xGND allocation: Once xGND is staked, staking tax will be applied. It can vary between contracts, but will usually be 0.2%. The corresponding amount of paid GND will automatically be burned.
Development Roadmap
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Core Team
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Investors
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Tokenomics
General information about GND Token
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Token Allocation
- Farm Incentives: 42%
- Treasury: 15%
- Community: 18%
- Liquidity: 10%
- Development Team: 15%
Token Use Case
GND Token holders will participate in governance and share protocol revenue.
Exchanges
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GND Protocol Information Channel
- Twitter: https://twitter.com/GNDProtocol
- Discord:
Summary
GND Protocol generates real revenue from Stablecoin gmUSD arbitrage and supports liquidity Farm on Uniswap V3 for users. And that revenue is rewarded to those who stake GND as well as buy back GND to burn.
So I have clarified what GND Protocol is? Overview of GND Protocol cryptocurrency. Hope this article brings you a lot of useful knowledge!