Alisa Davidson
Published: August 19, 2024 at 2:59 am Updated: August 19, 2024 at 2:59 am
Edited and fact-checked:
August 19, 2024 at 2:59 am
In Brief
GammaSwap plans to introduce its governance token, GS, which is anticipated to enhance liquidity and further decentralize the protocol.
Onchain perpetual options protocol GammaSwap announced plans to introduce its governance token, GS, which is anticipated to enhance liquidity and further decentralize the protocol. GammaSwap intends to initiate the Liquidity Bootstrapping Pool on August 30th, with an airdrop scheduled to follow soon after.
The GammaSwap Tokenomics is designed to discourage short-term speculative capital and optimize emission efficiency (EER). It provides rewards in the form of Escrowed GS (esGS) and Multiplier Points (MP).
The GS token can be staked to earn 30% of the protocol’s revenue in ETH, along with esGS rewards and MP points. esGS, which is a non-transferable ERC-20 token, represents an escrowed form of GS. It is earned through staking and liquidity mining. Users can stake esGS to accumulate additional esGS or they can vest it over a 30-day period. For vesting, users must reserve the LP tokens or GS tokens they originally used to earn the esGS.
MP are non-transferable ERC-20 tokens earned through staking, designed to reward stakers without causing inflation by boosting the APR on ETH rewards. The maximum cap for MP points is set at 100%, with the APR for MP points also at 100%. If a user withdraws GS or esGS from the staking vault, a corresponding portion of their MP points is burned.
The escrowed tokenomics system raises the opportunity cost of quickly selling rewards, delays inflationary pressure, and enhances the stability of LP positions.
GammaSwap Unveils Detailed Token Distribution And Vesting Schedule For GS Token
According to the token distribution plan, 37% of the total GS token supply will be allocated to the treasury, 23% to the core team, 17% to investors, 15% to liquidity mining and staking, 5% to the LBP, 2% to the airdrop, and 1% to advisors. The total GS token supply is set at 1.6 billion tokens.
Additionally, a vesting schedule has been established for the Core Team and Private Investors. The Core Team will receive their tokens with a 12-month cliff, followed by 24 months of linear vesting. Private Investors will have a similar schedule but with 18 months of linear vesting after the initial 12-month cliff.
GammaSwap is a non-synthetic protocol where positions are established by borrowing liquidity from Automated Market Makers (AMMs). This approach allows it to provide leverage on any token without relying on an oracle. The protocol is compatible with any AMM that functions as a Constant Function Market Maker (CFMM), including platforms like DeltaSwap, Uniswap V2, and SushiSwap V2.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
More articles
Alisa Davidson
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
GammaSwap’s introduction of the GS governance token marks a significant step towards enhancing liquidity and decentralization within the protocol. With innovative tokenomics designed to incentivize long-term engagement and stability, this launch sets a new standard for DeFi projects looking to create sustainable ecosystems.
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