GFI Tokenomics

DeFi Backed by bitcoin

Tokenomics

When most people think about Tokenomics, they generally think about the supply, distribution, circulating and inflation or deflation mechanics. We have covered this information in our first Medium article, “Introducing Gravity Finance”.

Admin Fees — Overview

All Gravity Finance products produce “Admin Fees” (or Platform Fees).

Admin Fees — General

The graphic below is a simple overview of how Admin Fees at Gravity Finance are distributed.

Admin Fee Distribution

As mentioned above, some admin fees are treated in different ways depending on the product. For example the Swap Exchange admin fees are converted to wETH and wBTC and distributed to GFI holders, but the fees collected by the Vaults (i.e. Performance Fees), are handled in a slightly different way;

Vault Admin-Fees;

If a vault reward token is GFI, the performance fee is collected as GFI and is burned.

GFI Liquidity Pools;

A user who is providing liquidity on the Gravity Swap exchange, where part of the liquidity pool is a GFI token, has their wETH admin fees automatically processed for them.

Farms;

The GFI Single-Asset-Staking (SAS) Pool is designed to “burn GFI”. Users who are staking GFI in the GFI SAS Pool are benefiting the whole GFI userbase. When wETH admin fees are distributed, the GFI SAS farm claims the wETH earnings, buys GFI tokens from the open market and then burns the GFI tokens that were purchased. The users do not directly receive the wETH earnings but the total GFI supply is reduced making the remaining supply have an increased value. The GFI SAS farm is unique, in as much as there is no risk of impermanent loss on the farm and the rewards issued as GFI tokens to the pool currently outweigh the loss of wETH earnings.

User Wallet;

A user who holds GFI tokens in their wallet can directly claim wETH earnings from the Governance Smart Contract (or by using the portal on the Governance Page on the website). When wETH earnings are distributed, a user who holds GFI in their wallet at the time of distribution will have an increased wETH claim available to them based on the amount of GFI tokens that are held in the wallet at the time the admin-fees were processed.

Summary;

In summary, and as detailed above, a GFI token holder can use their GFI tokens in a number of ways on the Gravity Platform without losing their earning potential, users are not restricted to simply “stake in this specific contract to earn platform fees” but are able to use the tokens to provide liquidity on the platform, yield farm, hold in their wallet or stake in a farm, all without losing the benefit of being a GFI token holder!

Future Products

We are currently working on a number of new and exciting products that we will bring to market, these include lending and borrowing (Loans), Derivatives trading, personalised investment strategies and more. All products will generate “Admin Fees”. Gravity Finance aims to become a hub of activity on the Polygon network, allowing users to trade, lend, borrow, join exciting IDO’s and set up complex or simple automated tasks in the defi space.

Partnerships

We are always on the look out to work with the brightest minds in the space. If you have a unique project you think would be a good fit at Gravity Finance, get in touch with us (on Discord or Tweet @ us).

Links

Website: https://gravityfinance.io