Gravity Finance is a growing suite of DeFi products built on Polygon. Current products consist of:
- A Decentralised Swap Exchange
- Yield Farms
- Auto-compounding Vaults
Plus coming soon
- IDO Launchpad
- Automated Personalised Investment Strategies
“Gravity Finance is not ‘just another yield farm’ or ‘cloned exchange’, the platform consists of 20+ completely custom contracts that have been audited and peer-reviewed.
We are currently gearing up to release new innovative products for the DeFi ecosystem that everyone on Polygon will be able to utilise, not just Gravity Users. Watch this space!”
Token Name: Gravity Finance
Token Ticker: GFI
Supply: 1.2b Initial/Max
GFI Admin Fees and how Gravity differs from other platforms:
GFI is the Gravity Finance Governance token.
Like most other DeFi platforms, owning the governance token allows the token owner to earn a share of the platform profits, or “admin fees”. However, Gravity Finance differs in a couple of major ways from other platforms when it comes to actual fee distribution and eligibility.
On almost every other DeFi platform, governance token holders must stake their tokens in a specific pool or smart contract to be eligible to earn admin fees.
On most of these other platforms, admin fees are only distributed to the individuals who are staking in these specific pools or smart contracts. Additionally, fees are usually distributed as “more governance tokens” or some kind of “share token” that the user must then sell to see a realised profit. This in turn can create sell-pressure on the market as individuals sell tokens to “cash-out” some of the profits that they are earning.
This is where Gravity Finance differs greatly from every other platform.
Firstly, as a GFI token holder, there is no need to stake GFI tokens in any specific pool or contract to be eligible to earn platform fees. Every GFI token holder who is either holding GFI in a wallet or using GFI in a Gravity product is automatically eligible to earn their rightful share of the admin fees.
This means GFI holders are able to use GFI tokens to provide liquidity on the exchange or use their tokens in a yield farm or one of the auto-compounding vaults.
GFI owners can even keep their GFI tokens in a personal wallet (including offline hardware/cold storage wallets) and they still receive their fair share of the admin fees!
Secondly, admin fees are not paid to GFI token holders as “more GFI tokens” or as a “Share Token”. Through the use of custom smart contracts, admin fees are collected from all of the different Gravity products and then converted into wrapped ETH (wETH) and wrapped BTC (wBTC) at a rate of 50% each.
The wETH is distributed to the GFI token holders and the wBTC is stored in the Governance Contract, acting as GFI token backing, hence GFI token is backed by Bitcoin.
This method of fee distribution using wETH, overtime should reduce market sell pressure for GFI, and the wBTC backing amount will continually increase as more admin fees are generated by the platform products. As the wBTC backing increases, the “floor value” of the GFI token will be increased over time.
GFI token holders can freely trade their GFI tokens on the open market at whatever market rate they wish, however there should always be a floor value based on the amount of wBTC backing in the governance contract. If for any reason the trading value of GFI on the open market were to fall below the floor value of the wBTC backing, there would be an arbitrage opportunity where users could purchase GFI from the open market and instantly swap the GFI with the governance contract to claim a portion of the wBTC backing.
The Gravity Finance team has plans for cross-chain deployment of products, allowing the protocol to be opened to many more users through multi-chain products. There are also plans to become a DAO, which will give the governance token holders control over the direction of the protocol through governance votes on major decisions in the future.
Telegram (Chat): https://t.me/gravityfinancecommunity
Telegram (Announcements): https://t.me/gravityfinance
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