Algo-StableCoin on top of Graviton Protocol (strategic GTON utility purpose)

Hi guys, I have an idea for an exclusive stable coin of Graviton Protocol to help the ecosystem increase the value of the capital resource (support to PATHWAY). I spent a lot of time thinking and writing down my proposal below. Hope the Team and the community will read and contribute this idea. Thanks a lot !!!

GUSD - The Index Stablecoin of Graviton Protocol

1. Each stable coin added to the liquidity pools in the Graviton Protocol is the basis for issuing a corresponding GUSD coin (1 stable coin => 1 GUSD).

Any token A is given a liquidity pair by a user with a type of stable coin in the Graviton Protocol, will automatically be converted into 3 liquid currency pairs with the following ratios:
• 50% A – 50% stable coin
• 50% A – 50% GUSD
• 50% stable coin – 50% GUSD

*For example:

1 GTON token costs $ 10, a user provides liquidity for 1 currency pair (100 GTON - 1000 USDC), at this time Graviton Protocol automatically converts into 3 liquid currency pairs as follows:
• 50 GTON – 500 USDC
• 50 GTON – 500 GUSD
• 500 USDC – 500 GUSD

=> Obviously this model helps to increase TVL and overall liquidity cash flow for Graviton Protocol. In the above example, the total initial capital of users brought into Graviton Protocol was $2000, but it caused the ecosystem to have an actual total added value of $3000.

2. Liquidity pairs (GUSD – type of stable coins) help form a Stablecoin Liquidity Treasury for Graviton Protocol

Suppose we have a Graviton Protocol Stablecoin Liquidity Treasury as follows:
• 500 GUSD – 500 USDC
• 500 GUSD – 500 USDT
• 500 GUSD – 500 BUSD
• 500 GUSD – 500 DAI
• 500 GUSD – 500 HUSD

The purpose of this Stablecoin Liquidity Treasury are

• Guaranteed value for GUSD
• Funding to buy back GTON tokens for PATHWAY protocol along with Early-Bird Treasury in the long term, whenever GTON’s price falls below the Lower Boundary price. The rate of using funds to buy back GTON tokens includes (50% GUSD + 50% types of stable coins). For example, we decide to use $1000 in the Liquidity Treasury Stablecoin above to buy back GTON, then the rate of deduction is (500 GUSD + 100 USDC + 100 USDT + 100 BUSD + 100 DAI + 100 HUSD).
• On the other hand it guarantees a large reserve for tokens that are added liquidity with stable coin pairs in case users withdraw their liquidity to the stable coins they want except GUSD.

GUSD is an Index Stablecoin of Graviton Protocol because 3 reasons:

  1. GUSD is minted when other stable coins are included in the Graviton Protocol and NOT burned when these stable coins are withdrawn from the system.

  2. The total number of GUSD coins in existence in the Graviton Protocol at a particular point in time represents the total value that has flowed through the entire protocol in history. For example, at the end of 2022, if the total amount of GUSD in circulation is 1 billion coins, it means that Graviton Protocol has attracted $ 2 billion of total liquidity to flow through the system (not counting the value of 1 billion GUSD) => this is the main reason why calling GUSD an Index stable coin of Graviton Protocol

  3. Besides that, we can also consider the value of GUSD as an Index Stablecoin when setting the price of GUSD as the average price of all stable coins present in the Early-Bird Treasury.

6 Likes

@alexp @RND332 @BNS @Dev hope Graviton team & guys will read it and give your respond. thanks a lot guys.

2 Likes

Regarded! when the market size is enough, i think GUSD will be more and more useful.

2 Likes

to be very honest I personally like an idea of Graviton Stablecoin (GSUSD).
Why?

We’ll add more utility for the GTON and many GTON’s can be locked for staking purposes or fees accumulation, while GSUSD stakers will be market neutral

Btw this can be implemented only after finishing of the Farming & Catalyst

7 Likes

Dear Alex,

Spread ratio (Pip) of Stable coin is influence on the value IF the market down. So, i think GUSD, we will cover the huge of value on the pip index per each of stable coin. DEGEN is as axample index of

  • Thorchain, 15.6% ($RUNE);
  • Ren, 14.58% ($REN);
  • Reserve Right, 10,7% ($RSR);
  • Curve, 10% ($CRV);
  • 1INCH, 9.2%($1NCH);
  • Ocean, 9.2%($OCEAN);
  • Alpha Finance, 8.5% ($ALPHA);
  • BadgerDAO, 8.3% ($BADGER);
  • Polkastarter, 7.17% ($POLS);
  • Mirror Protocol, 6.46% ($MIR).

Brds,
Paolo

1 Like

The idea is worth implementing.

3 Likes

GUSD - the exclusive stable coin of Graviton Protocol - Ver 2.0

— $$$ —

In the Graviton Protocol, liquidity pools should always be paired with the GTON token because, in this design, the new GTON token represents the role of a Relay Token and promotes the Reflection Farming concept to operate efficiently. Following this principle in developing an exclusive stable coin – GUSD – for Graviton Protocol, we have 3 basic principles to issue a GUSD coin as follows:

1. A stable coin when added to the liquidity pools paired with the GTON token in the Graviton Protocol is the basis for issuing a corresponding GUSD coin. Example: 1 stable coin => 1 GUSD.

2. Value of an amount of the Native Tokens or Wrapped Tokens calculated at the time of being added to the liquidity pools paired with GTON tokens in Graviton Protocol is the basis for issuing a corresponding amount of GUSD. Example: 1 BNB = 500$ => 500 GUSD or 1 LINK = 25$ => 25 GUSD.

3. GUSD will work in the Graviton Ecosystem with the nature of a Stablecoin Index of Graviton Protocol, so GUSD will NOT be burned when stable coins or other liquid tokens (native tokens and wrapped tokens) are withdrawn from the system.

According to principle #1, an amount of GTON token when a user provides a liquidity pair with a corresponding amount of stable coins in the Graviton Protocol will automatically be converted into 3 liquid currency pairs with the following ratio:

  • 50% GTON – 50% stable coin
  • 50% GTON – 50% GUSD
  • 50% stable coin – 50% GUSD => This liquidity pair is automatically added to the Stablecoin Liquidity Treasury

*Eg:

1 GTON token costs $ 10, a user provides liquidity for 1 currency pair (100 GTON - 1000 USDC), this time Graviton Protocol automatically converts into 3 liquid currency pairs as follows:

  • 50 GTON – 500 USDC
  • 50 GTON – 500 GUSD
  • 500 USDC – 500 GUSD => this liquidity pair is automatically included in the Stablecoin Liquidity Treasury

As principle #1, when a certain amount of stable coins are provided by GUSD Liquidity Providers to participate in the Graviton Protocol stable coin farming program for GUSD – Stablecoins liquidity pairs, they will automatically be converted into 2 liquidity pairs with the ratio is as follows:

  • 50% GUSD – 50% Stablecoin => this liquidity pair is automatically included in the Stablecoin Liquidity Treasury
  • 50% GUSD – 50% Stablecoin => this liquidity pair is automatically included in the Backed Funds

*Eg:

A user wants to deposit 1000 USDC into Graviton Protocol to participate in the stable coin farming program with GUSD coin, then the protocol will automatically convert into 2 parts of liquidity as follows:

  • 500 GUSD – 500 USDC => this liquidity pair is automatically included in the Stablecoin Liquidity Treasury
  • 500 GUSD – 500 USDC => this liquidity pair is automatically included in the Backed Funds

According to principle #2, as soon as there is a value of Native Tokens or any Wrapped Tokens when a liquidity pair is provided by the user with a corresponding amount of GTON tokens, the Graviton Protocol will automatically utilize it as proof for issuing an equivalent amount of GUSD

*Eg:

1 GTON token costs $ 10 and 1 PRQ costs $ 0.5, a user provides liquidity for 1 currency pair (100 GTON - 2000 PRQ), at this time Graviton Protocol automatically issues 1000 GUSD => these amounts of GUSD are automatically included in the GUSD Available Reserve

=> It’s obvious the GUSD stable coin issuance model with 3 main inputs of the farming program including GTON - Stablecoin, GTON - Liquid tokens (NT, WT) and GUSD - Stable coins helps to increase TVL and overall liquidity cash flow for Graviton Protocol. In the examples above, in both cases, the total initial capital of the users brought into Graviton Protocol was $2000 but resulted in the ecosystem having an actual total added value of $3000.

Strictly following principles #1 and principle #2, we clearly have 3 sources of funds to ensure the value of GUSD in particular and ensure the operating motivation for the entire Graviton Protocol in general, with the following purposes of the activities of each fund source are as follows:

1. Stablecoin Liquidity Treasury: includes liquidity pairs GUSD - Stablecoins used to guarantee the value of GUSD and can be used as a source of money to lend in lending protocols such as AAVE, COMP, CRV, ANC, XVS, etc. aimed at finding sustainable profits and then dividing that interest among stakeholders in the Graviton Protocol. Expanding integration into such lending protocols will help expand the possibilities and scope of use for GUSD itself in the DeFi space.

2. Backed Funds: also includes liquidity pairs GUSD – Stablecoins, but this fund will be used 25% to buy back NFTs on CandyShop and reward users who participate in the stable coin farming program for GUSD, this also supports liquidity and creates volume for CandyShop (NFT LP marketplace). And the remaining 75% from this fund will be used to support the PATHWAY protocol (market-making) for GTON tokens.

3. GUSD Available Reserve: is a reserve containing the entire amount of GUSD minted from liquidity pairs GTON – Liquid tokens (NT,WT) participating in the Graviton Protocol. To create liquidity and utility for GUSD and maintain the integrity of *GUSD’s Stablecoins Index for Graviton Protocol, this amount available of GUSD needs to be specified as the first necessary means of accessing other products in the Graviton ecosystem. In other words, this amount of GUSD generated from farming of GTON – Liquid tokens (NT,WT) pairs in Graviton Protocol will be “outflow” Graviton Protocol and “inflow” other core products of Graviton Ecosystem by requiring users to initially deposit other stable coins into the ecosystem to exchange for GUSD and then buy utility tokens of products such as $SUSY, $CANDY, $OGS .etc to be able to use use the services these products provide.

*GUSD’s Stablecoin Index means that anytime a user checks the circulating supply of GUSD in the Graviton Ecosystem, they will know the exact total amount of liquidity cash flow that has ever flowed over Graviton Protocol in history. For example, at the end of 2022, if the total amount of GUSD circulating in the Graviton Ecosystem is 1 billion GUSD, it means that 2 billion USD has been included in the Graviton Protocol for liquidity => this is why we call GUSD a Stablecoin Index of Graviton Protocol (Note: not including entire Graviton Ecosystem with the other products such as SUSY, CANDY, OGS, etc.), besides, we can also consider the value of GUSD as a Stablecoin Index when setting the price of GUSD as the average price of all the kinds of stable coin available at present in the Early-Bird Treasury (DAI, USDC, USDT, BUSD, HUSD).

1 Like

No burning when liquidity is withdrawn ? Isnt that just an infinite supply hack or im missing sth? Supply liquidity , gain dollar for treasury, pull liquidity, keep the dollar. Repeat?

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Supply hack or printing play money.
Maybe i did not quite get the purpose of it but it sounds a alot like proposed fraud to me.
You can’t just issue a usd pegged stable coin that is backed by thin air.