GUSD - the exclusive stable coin of Graviton Protocol - Ver 2.0
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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Protocol, so GUSD will NOT be burned when stable coins or other liquid tokens (native tokens and wrapped tokens) are withdrawn from the system.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
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
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
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).