GND protocol, what is it? Discover the basic information about this new DeFi ecosystem and its official website.
GND Protocol has two main focuses:
Yield-Bearing Use Cases and Revenue-Generating Sources:
- GND Protocol’s first product will be $gmUSD, the first yield-bearing, fully-backed stablecoin
- GND Protocol’s second product will be GND FARM, a powerful farming tool to generate amazing yield back to GND investors
The GND protocol is the parent protocol of $gmUSD. It is a high yielding, fully guaranteed stablecoin. It is built on the Uniswap V3 liquidity engine and farm.
To make this ecosystem work, it is efficiently used the $gDAI of the Gain protocol and the $gmdUSDC of the GMD protocol.
Here is an overview of this new ecosystem, which, if you follow the DeFi news should interest you.
GND protocol, how does it work?
Like other protocols on Arbitrum, the main goal is to bring real yield to GND ecosystems, netting positively for xGND holders. Hence, the team committed to battling the greatest challenge of farms: Inflation.
Yield > Inflation:
With protocols that have token incentives/ liquidity mining programs, real yield is achieved when yield > inflation or when inflation is negated through deflationary mechanisms. We aim to do that through the following sources of revenue:
As the sole minter/redeemer of gmUSD, GND protocol will arbitrage the premium on market as people buy/sell using their gmdUSDC or gDAI.
Uniswap v3 trading fees of protocol owned liquidity:
Similar to GMD, GND protocol will distribute the fees gained through people trading GND on uniswap v3.
Uniswap v3 fees from pairs on liquidity engine:
Similar to other AMMs that collect trading fees, we will collect trading fees on our uniswap v3 pairs on the liquidity engine as revenue. We are different from other farms in the sense that concentrated liquidity will generate significantly more volume and thus more fees than regular AMMs. Also, since univ3 pairs accrue 100% of fees, we don’t have to share any with Uniswap. In short, we are benefitting 100% from traders on uniswap v3 without a need for our own AMM.
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