Introducing Gravity Finance
DeFi backed by bitcoin
Limited on time?
Read the TLDR version for the key-points.
The DeFi space has exploded in the past 12 months with a large amount of innovation in such a short time frame. As DeFi enthusiasts, we took a step back and asked, what would be our ideal DeFi Platform. We identified the following items during that process:
- Cost — Fees needed to be lower, allowing anyone to interact frequently, with no need to think about gas-cost implications.
- Token Value — Governance Tokens should have an underlying intrinsic value that grows with the project.
- Token Price — Mechanisms to ensure a token’s price matches, or exceeds its intrinsic value over time.
- Platform Earnings — Fees earned by Governance Token Holders should be in a different currency to the Governance Token, otherwise the price of that token can be subject to downward market pressure.
- Smart Contract Risk — To earn from the platform, staking of Governance Tokens should not be required. Ownership alone should entitle this.
- Automation — Reduction (or removal) of manual tasks required to maximise and compound earning potential.
At first glance, Gravity Finance may appear very similar to other DeFi platforms. In fact, the core features are very similar, however we aim to improve on the items mentioned above, in a new and innovative way!
This article is an introduction to the project. Specific details about the platform features will be released as they become available.
The Features our Platform will offer
- Swap Exchange (at launch)
- Vaults — Automated Investment (coming soon)
- Automatic Trading Strategies (coming soon)
- Derivatives Trading — Options (coming soon)
- Launch Pad for IDOs (in planning stage)
- Lending and Borrowing — Loans that pay themselves off (in planning stage)
- Margin Trading (in planning stage)
Multi-Chain & Ethereum Layer 2
Gravity Finance will utilize the latest in multi-chain and/or Layer 2 technology to bring fast and cheap transactions to DeFi. No longer will users need to worry about the speed or cost to perform transactions. Details on our multi-chain / Layer 2 path will be announced along with the other platform specifics closer to the launch date.
Governance Token (GFI) Utility
As with most DeFi platforms, Governance Token Holders earn fees from the platform’s products and are entitled to other benefits. In this respect we are the same, however we have redesigned the process in a big way, adding a true value-accruing mechanism in our fee-distribution model and tokenomics.
Currently, other DeFi platforms require Governance Token Holders to stake tokens before they are eligible to earn a share of the revenue. Our token (GFI) can remain in a personal wallet at all times and your share of the platform value is always available to claim. No.Staking.Required.
This reduces the steps required for Governance Token Holders to start earning from the platform and allows GFI holders to easily compound their earnings without the need for further transactions, which in turn reduces gas-fees.
GFI Holders will also benefit in the following ways;
- Discount on platform fees (details coming later)
- Access to Launch-Pad IDOs
Our Fee-Distribution Model
Admin Fees are generated from all of the platform’s products. Initially this will be from trades made on the swap exchange, with other products coming soon.
The exchange fees, paid by traders, is 0.3% (on each trade). 0.05% of this is the Admin Fee, with the other 0.25% going to the Liquidity Providers.
All Admin Fees collected from the platform are sent to the Governance Smart Contract, where they are converted to 50% ETH and 50% wBTC.
These fees remain in the contract and are available for the GFI Token Holders to claim. The maximum claim size is based on the users percentage of the total supply of GFI Tokens.
The 50% stored as ETH can be claimed at any time.
The 50% stored as wBTC is somewhat different… it can also be claimed at any time, but by claiming wBTC the corresponding GFI Tokens are burned (proportional to the amount claimed).
This structure is where our project’s tagline originates “Backed by bitcoin”. This wBTC is what backs our Governance Token, giving it true intrinsic value. This value is programmed to increase over time as more fees are collected from the platform (and the price of BTC hopefully continues to rise).
Despite the intrinsic value, we anticipate the token’s price will trade at a premium, due to speculation and it’s future value proposition (like other DeFi tokens). As GFI are burned, remaining holders earn a larger percentage of the platform revenue.
Should the price of GFI ever trade below its intrinsic value (very unlikely) this would create an arbitrage opportunity with bitcoin.
Initially the wBTC will sit in the governance contract ready to be claimed by GFI Token Holders. How the wBTC is handled later is subject to change by Governance Vote. One option could be to actually invest some (or all) of the wBTC in an interest earning DeFi protocol, putting the funds to work and compounding it’s value.
If wBTC were to be invested in a Gravity or Yearn vault and a GFI Holder wanted to redeem their token’s intrinsic value, they would receive the remaining wBTC, plus any vault tokens owned by the governance contract (proportional to their GFI holdings).
This automated investment strategy would further compound the value of GFI over time. All of this is handled for token holders with no manual processes or staking required.
GFI Supply and Allocation of Funds
Total GFI Supply: 1,200,000,000 distributed as follows:
100,000,000 : Seed Investors and Founders.
Price: .0000125 ETH per GFI.
100,000,000 : Treasury (Development Fund).
Note: Seed investors, founders and Treasury owned tokens are locked for 12 months. During this 12 month period, locked GFI can not be transferred, sold, staked in farms or claim wBTC (withdrawal and burn). They can withdraw the ETH component of the platform earnings.
100,000,000 : Initial Launch Promotions, Community Challenges, Marketing and Incentives. These will be distributed at the discretion of the team
Note: Some tokens distributed from this allocation may be vested for a 12 month period and will not be able to be transferred, sold, staked in farms of claim wBTC (withdraw and burn). Vested coins can still claim the ETH component of the platform earnings.
40,000,000 : IDO
Price: 0.000025 ETH each
Note: 100% of funds go to the Treasury to pay for platform development. Any unsold tokens will be distributed at the discretion of the team and most likely used for platform promotions.
860,000,000 : Farming Pools. Staking of LP tokens and a select few tokens from other DeFi projects can be staked to earn GFI in phase 2.
The GFI Farming Pools will remain open for 12 months.
…more details released later.
Launching the Project & Token Distribution
The platform launch and token distribution will be conducted over 2 phases.
Prior to phase 1, through to the end of phase 2, there will also be various competitions and community challenges, allowing GFI to be obtained for free. Further details will be announced later.
A maximum of 40,000,000 GFI Tokens will be offered at a price of .000025 ETH each. We are targeting a minimum raise of 150 ETH and a maximum raise of 1,000 ETH.
This token sale will open during May 2021. The exact date and IDO model will be announced in early May.
All funds generated are retained in the Treasury (development fund). Funds will be used entirely to develop the project further, with a rapid development schedule.
Exchange Launch and Farming Round
This phase will begin with the launch of our Swap Exchange.
At this time, our farms will be opened, allowing GFI to be obtained by Gravity Exchange liquidity providers and a selection of tokens from other crypto projects.
Higher allocations of GFI will be available to LP token farms, incentivizing users to add liquidity.
This phase will launch in July 2021 and run for 12 months.
(exact date to be announced)
Valuing GFI and comparing to other tokens
When comparing GFI to other tokens, it’s important to remember that GFI has an underlying intrinsic value in the form of wBTC. This value must be deducted from its market cap. before comparing it to other tokens (which have none).
The actual market cap. of GFI can’t be determined until it’s publicly traded (the market sets its price) however this intrinsic value should always be considered when comparing to other tokens.
When the price is determined by the market it will likely trade much higher than it’s backing value due to speculation on future value generated by increasing user adoption and earning potential.
Smart Contract Audits
Following completion of the IDO and before the launch of the swap exchange we will be seeking a Smart Contract auditing company to audit all of the smart contracts for the project.
Web Developer and Project Lead for over 17 years. Active investor and trader in both traditional markets (20 years) and crypto (4 years) including development of automated trading systems. Self confessed DeFi addict!
A project manager with more 20 years experience, successfully leading small teams in traditional bricks and mortar businesses. GFi_D took an interest in the crypto-space in early 2013. By the end of 2014 he was fully immersed as a trader in the space and has not looked back since.
Web design for over 15 years, developing all sorts of contents for businesses and individuals according to their needs, going from logos, banners and landing pages to complete self-manageable and responsive systems. Currently also working for PRDX and SEPA. Involved with cryptocurrencies since 2014.
Mechanical engineer turned solidity developer. Crispy has 3 years of experience developing professional Python applications for both front-end and back-end users.
Lead Graphic Design
Graphics designer 12 years experience in all things brand related and a new interest in all things DeFi. Stroh’s skills include product design, animation and video editing, creating and maintaining design systems, and UX Design.
Twitter: https://twitter.com/Gravity_Finance (@Gravity_Finance)
Information provided above does not represent financial, investment or trading advice and we do not recommend the purchase of any cryptocurrency or product without consulting financial advice. Please do your own research before making any investment decisions.
Some of the information above is subject to change. Details will be finalized before commencement of the presale.