$GNS Staking, a new referral system, and much more (v6.2).

Enjoy reading — Séb

🔥 $GNS Staking & Fees

  1. The distribution of the 0.06% closing fee will go from:
    * 50% DAI vault
    * 50% GNS-DAI LPs
    * 40% $GNS staking
    * 40% DAI vault
    * 20% GNS-DAI LPs
    → GNS-DAI LPs are less important in our new architecture since $GNS minting by the DAI vault has been disabled.
    → The DAI vault earning 50% was only temporary while it was undercollateralized, 40% is fair considering it is now over-collateralized.
  2. You will be able to stake up to 3 of our NFTs to boost your share of $GNS staking rewards
    → boosts % = 2%, 3%, 5%, 8%, 13% (per nft tier)
  3. Market orders will cost as much as limit orders (0.08% vs 0.06%)
    → 2nd revenue stream going to $GNS staking.
    → Makes the fee system simpler.
  4. The 0.5% collateral closing fee will be removed
    → Compensates for the market order fee increase.
    → Makes the fee system much simpler.
  5. Opening fees will be applied on the initial position size
    → Instead of one after another.
    → Easier calculations, more accurate, slightly more protocol revenue.

By staking $GNS you will be able to earn $DAI from the trading fees generated, creating a strong incentive for the community to share the platform organically to increase the volume. We strongly believe this will be a core part of the growth of the protocol.

We’re also making the trading fees much easier to understand, going from either 0.06% or 0.08% and a 0.5% collateral fee on closing only to a simple 0.08% on every order, and at the same time more than doubling the $GNS staking rewards compared to what was initially planned.

In total, 40% of the fees from market orders and 15% of the fees from limit orders will be allocated to $GNS staking. 70% of our trades are market orders, therefore 32.5% of fees from all orders on average will go to $GNS staking.

📈 Referrals

  1. Whitelisted system
    → Only organic accounts will be approved.
    → We reserve to ourselves the right to remove whitelisted referrals at any point in time if bad behavior has occurred (eg. if misinformation on the platform is shared by the account).
    → Details on how to join the whitelist will be announced when the referral system goes live.
  2. Rewards are between 0.015% and 0.02% of the opening volume referred, claimable at any time in $GNS.
    → Depends on volume already referred (0 = 0.015%, ≥ $10m = 0.02%, linear in between, eg. $5m volume referred = 0.0175% reward).
    → Taken from gov/dev fees (50%/50%)
    → Just like NFT fees and LP fees, the DAI fee goes into the vault and refills it, and the $GNS is minted at the time of distribution and can be claimed.
  3. Two level system
    → Allies who help us onboard referrals earn 10% of the referral rewards.
    → If you help us establish a connection with an influencer, you can earn 10% of what they will generate with referral fees.
  4. Traders do not pay fewer fees by using a referral link
    → Because no way of distinguishing between new and existing users; otherwise, would represent significantly less revenue to the project wallets without bringing more users, as every existing trader would just use a referral link to pay fewer fees.

The referral system will be core to the organic growth of the platform and also to our marketing strategy that aims at onboarding as many “influencers” as possible to share the platform.

⚙️ Miscellaneous

  1. Proper smart contracts events will be emitted every time revenue is generated with the exact value.
    → Much easier and precise tracking of revenue through stats dashboards
  2. The LINK/USD price in the price aggregator is going to use a chainlink price feed
    → Used to calculate our chainlink DON rewards
    Accurate in real-time without requiring updating the value manually.
  3. Collaterals won’t go into the DAI vault anymore when a trade is opened
    They will stay in the storage contract.
    → Only the PnL will go through the vault (eg. positive PnL => PnL goes from vault to trader, negative PnL => PnL goes from trader to vault).
    → It won’t be possible to burn trades collaterals anymore as they don’t contribute to the over-collateralization
    → Much safer, fixes one of the main reasons why the DAI vault went undercollateralized for a short amount of time.
  4. Various code optimizations.
  5. A bonus feature that can make the trading experience significantly smoother :) more details soon…

📅 Mainnet ETA:

The scope of the update has gotten bigger than anticipated, therefore a lot more testing work has had to be done.

We now target August 15th (+- a few days depending on the audit).

Thank you for reading! 💪




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