Disclaimer: GEL token is not an investment.
Incentivising Liquidity Providers, unlocking functionality and creating long term potential.
Liquidity provision is a key factor in the success of decentralized exchanges, just as it secured a stable and healthy environment for trading participants. With the eyes set to the launch of DEXG Swap later in Q1 2021, we will today reveal the GEL token and the associated liquidity mining program incentivising liquidity providers.
GEL — DEXG Enhanced Liquidity
GEL will serve as utility token on DEXG-Swap unlocking various advanced functionalities, such as rent-to-use trading bots and advanced order-types. GEL tokens will only be acquirable on the free market or via the liquidity mining program for liquidity providers.
The GEL contract has been deployed on the Ethereum blockchain and can be viewed on Etherscan.
While the Speculative AMM (“sAMM”) aims to eliminate impermanent loss by offering and managing single-asset pools, liquidity providers can earn fees with minimized risk. However, while these factors already bring a lot of benefits to liquidity providers, GEL aims to additionally attract liquidity to DEXG Swap by rewarding liquidity providers with a liquidity mining program. In combination of these aspects we ensure a sustainable, healthy and organically growing trading environment, encouraging LPs, traders and arbitrageurs alike.
While liquidity is important, it’s only part of our growth strategy. We will use GEL to invest in partners that will create advanced trading tools and opportunities for our traders who will be given access by using GEL. Thus, we aim to create a value retaining cycle which we think will attract users, LPs and developers alike.
GEL — Token Metrics
The GEL supply is pegged to the supply of DEXG with a ratio of 1000:1, resulting in a total supply to 55,000,000 GEL. The biggest part of GEL tokens will be used to incentivise liquidity provision, with a set amount of tokens being airdropped to DEXG stakers and a vested allocation for team, operations, advisors and cooperative partners.
In part these allocations will be scheduled with a 4 year vesting period to continually express our long term commitment to our products, the creation of our ecosystem and our community. We believe this will attract reliable and strong partners that share our long term vision.
Liquidity Providers (60% — 33,000,000 GEL)
These tokens will continuously be distributed to liquidity providers on DEXG Swap via the liquidity mining program, throughout the course of a 4-year period.
Team and Operations (18.8% — 10,340,000 GEL)
These funds are vested over a 4-year schedule and will fund the ongoing operational expenses, as well as the costs of future employees.
Investors and Partners (18.3% — 10,065,000 GEL)
These funds are vested over a 4-year period schedule and will incentivise investors and cooperation partners to expand and strengthen the DEXG Swap ecosystem.
Advisors (2.2% — 1,210,000 GEL)
These funds are vested over a 4-year period and reward the advisors helping to build the ecosystem and tools to improve DEXG Swap.
DEXG Stakers (0.45% — 247,500 GEL)
These funds are claimable by the participants of the DEXG Staking rounds, depending on the time and amount of pledged tokens to the staking rounds.
Initial Pool (0.25% — 137,500 GEL)
These funds will be placed on Balancer exchange to build the initial liquidity for GEL.
The philosophy of the liquidity mining program is to use a simple and straightforward liquidity mining model, distributing 33,000,000 GEL to liquidity providers over the span of 4 years. To ensure the schedule we split the distribution into set amounts per year with a decreasing distribution output.
Liquidity providers in the first year compete for a total of 10,890,000 GEL, distributed on a weekly basis. Depending on their share of the global liquidity on DEXG Swap, liquidity providers can claim their part of the 226,875 GEL per week.
In practice, the DEXG Finance team will define the starting and ending block of the week and calculate every whitelisted pool’s total liquidity according to its proportional liquidity share. Then, allocate GEL to each liquidity pool and its liquidity providers according to the liquidity they’ve contributed to. The liquidity provider will need to claim their GEL tokens on DEXG Swap.
Only whitelisted pools / tokens are eligible for GEL liquidity mining. To whitelist a pool, the Dextoken governance community will conclude on-chain votes after a proposal to whitelist a pool has been created. The current whitelist will always be accessible via the DEXToken Protocols Github.
© DEXG Finance
GEL tokens are not intended to constitute securities in any jurisdiction. The above article does not constitute a prospectus or offer document of any sort, and is not intended to constitute an offer of securities or a solicitation for investments in securities in any jurisdiction.
DEXG Finance (“Development Team”) disclaims any and all responsibility and liability to any person for any loss or damage whatsoever arising directly or indirectly from (1) reliance on any information contained in the white paper and this article, (2) any error, omission or inaccuracy in any such information, or (3) any action resulting therefrom.
The value of GEL tokens is currently very volatile. The Development Team does not have any means of stabilizing the token value, please buy at your own risk. Unlike bank accounts or accounts at some other financial institutions, GEL are uninsured unless you specifically obtain private insurance to insure them. Thus, in the event of loss or loss of utility value, there is no public insurer or private insurance arranged by Company, to offer recourse to you. Because GEL are based on the Ethereum protocol, any malfunction, breakdown or abandonment of the Ethereum protocol may have a material adverse effect on the platform or GEL. Moreover, advances in cryptography, or technical advances such as the development of quantum computing, could present risks to the GEL and the platform, including the utility of the GEL for obtaining services, by rendering ineffective the cryptographic consensus mechanism that underpins the Ethereum protocol.
As stated above, the GEL token is not intended for investment. It is a functional token of DEXG platforms, and GEL’s launch will begin to trade on secondary markets where its price is strictly determined by demand. However, free trade and speculation produce a circumstance where there are two GEL prices — one is in DEXG pegged price and another on platforms such as Balancer and Uniswap.
Thus, these two prices diverge, in the DEXG platforms, the GEL price closely follows the DEXG circulating supply on Ethereum. However, on the secondary markets, the price is often defined by demand, which can lead to speculation. Therefore, the community is encouraged to consult knowledgeable professionals concerning the cautiousness of pump-and-dump schemes around GEL.