FAQ
Dollar-pegged stablecoins have become an essential part of crypto due to their lack of volatility as compared to tokens such as BNB, Bitcoin and Ether. Users are comfortable with transacting using stablecoins knowing that they hold the same amount of purchasing power today vs. tomorrow. But this is a fallacy. The dollar is controlled by the US government and the Federal Reserve. This means a depreciation of the dollar also means a depreciation of these stablecoins.
Is GG a stablecoin?
No, GG is not a stable coin. Rather, GG aspires to become a proxy for the value held in the GG treasury.
Is GG is backed?
In theory, GG tokens are backed by the value held in the GG treasury. However, it is up to the market to decide whether the token itself trades at a premium or discount to intrinsic value.
How tf does it work?
At a high level, GG consists of its DAO managed treasury, protocol owned liquidity (POL), mint mechanism, and staking rewards that are designed to control supply/expansion.
Minting GG generates profit for the protocol, and the collateral pool uses the profit to mint additional GG and distribute them to stakers and the DAO wallet. With liquidity minting, the protocol is able to accumulate liquidity to ensure the system stability.
What is the deal with this (3,3) and (🦍,🦍) memery?
KEEP IT SIMPLE STUPID - Diamondhandzo leads the way. Buy, stake, hoard, mint, stake, hoard. The protocol benefits if everyone participates. Game theory upcoming, you’ve seen it, you don’t understand it, but it does make sense....
(3,3) is a mathematical representation. We’re apes so MemeFi prefers, (🦍,🦍). This is the idea that, if everyone cooperated in GG, it would generate the greatest gain for everyone (from a game theory standpoint). Currently, there are four actions a user can take:
Buying (🦍) Minting (🦍) Staking (🍌) Selling (🖕)
Buying, Minting and Staking are considered beneficial to the protocol, while selling is considered detrimental. Buying and Staking cause a price move, while minting only supports the ability to increase APY%. Since both actions are beneficial, the actor who moves price is (🦍) and the actor who increases APY% is (🦍). Any ape who stakes is getting those bananas and removing their GG from the market. Which means the greatest outcome is (Ape, Ape). Heres where the meme comes to life!
If we both buy and stake, it is the best thing for both of us and the protocol. If one of us stakes and the other one mints, it is also great because staking takes GG off the market and puts it into the protocol, while minting provides liquidity and BUSD for the collateral pool.
When one of us sells (🖕), it diminishes the effort of the other one who stakes or mints. When we both sell, (🖕,🖕) it creates the worst outcome for both of us and the protocol.
Based, but why is PCV important?
GG can only be minted or burned by the protocol/DAO. As the protocol accumulates more PCV, more runway is guaranteed for the stakers. This means the stakers can be confident that the current staking APY can be sustained for a longer term because more funds are available in the collateral pool.
That is some giga brain shit, but why is POL important?
GG owns most of its liquidity thanks to its mint mechanism. This has several benefits:
GG does not have to pay out high farming rewards to incentivize liquidity providers a.k.a renting liquidity.
GG guarantees the market that the liquidity is always there to facilitate sell or buy transactions.
By being the largest LP (liquidity provider), it earns most of the LP fees which represents another source of income to the collateral pool.
All POL can be used to add intrinsic value to GG. The LP tokens are marked down to their risk-free value for this purpose.
Ser, why is the market price of GG so volatile - can dev do something?
It is extremely important to understand how early in development the GGDAO protocol is. A large amount of discussion has centered around the current price and expected a stable value moving forward. The reality is that these characteristics are not yet determined. The network is currently tuned for expansion of GG supply, which when paired with the staking, minting, and yield mechanics of GGDAO, result in a fair amount of volatility.
GG could trade at a very high price because the market is ready to pay a hefty premium to capture a percentage of the current market capitalization. However, the price of GG could also drop to a large degree if the market sentiment turns bearish. We would expect significant price volatility during our growth phase so please do your own research whether this project suits your goals.
What is the point of buying it now when GG trades at a very high premium - ape confused?
When you buy and stake GG, you capture a percentage of the supply (market cap) which will remain close to a constant. This is because your staked GG balance also increases along with the circulating supply. The implication is that if you buy GG when the market cap is low, you would be capturing a larger percentage of the market cap.
Wtf is a rebase?
Rebase is a mechanism by which your staked GG balance increases automatically. When new GG are minted by the protocol, a large portion of it goes to the stakers. Because stakers only see staked GG balance instead of total GG, the protocol utilizes the rebase mechanism to increase the staked GG balance so that 1 staked GG is always redeemable for 1 GG.
What is reward yield - iz good?
Reward yield is the percentage by which your staked GG balance increases on the next epoch. It is also known as rebase rate. You can find this number on the Galaxy Goggled staking page.
What APY mean?
APY stands for annual percentage yield. It measures the real rate of return on your principal by taking into account the effect of compounding interest. In the case of GGDAO, your staked GG represents your principal, and the compound interest is added periodically on every epoch (8 hours) thanks to the rebase mechanism.
One interesting fact about APY is that your balance will grow not linearly but exponentially over time! Assuming a daily compound interest of 2%, if you start with a balance of 1 GG on day 1, after a year, your balance will grow to about 1377.
How is the APY calculated?
The APY is calculated from the reward yield (a.k.a rebase rate) using the following equation:
It raises to the power of 1095 because a rebase happens 3 times daily. Consider there are 365 days in a year, this would give a rebase frequency of 365 * 3 = 1095.
Reward yield is determined by the following equation:
The number of GG distributed to the staking contract is calculated from GG total supply using the following equation:
Note that the reward rate is subject to change by the protocol.
Why does the price of GG become irrelevant in long term?
As illustrated above, your GG balance will grow exponentially over time thanks to the power of compounding. Example: Let's say you buy a GG for $400 now and the market decides that in 1 year's time, the intrinsic value of GG will be $2. Assuming a daily compound interest rate of 2%, your balance would grow to about 1377 GG by the end of the year, which is worth around $2754. That is a cool $2354 profit! By now, you should understand that you are paying a premium for GG now in exchange for a long-term benefit. Thus, you should have a long time horizon to allow your GG balance to grow exponentially and make this a worthwhile investment.
What will be GG intrinsic value in the future?
There is no clear answer for this, but the intrinsic value can be determined by the collateral pool performance. For example, if the collateral pool could guarantee to back every GG with 20 BUSD the intrinsic value will be 20 BUSD.
Do I have to unstake and stake GG on every epoch to get my rebase rewards?
No. Once you have staked GG through the GGDAO site, your staked GG balance will auto-compound on every epoch. That increase in balance represents your rebase rewards.
Is GGDAO Audited?
GGDAO is currently audited by two independent auditors, Paladin and Solidity Finance! - See Links
So what’s different?
Branding:
We believe it’s time for memes and DeFi to tie the knot. Apes want more than just utility, they want to be excited and to have fun.
GGDAO is the first application of memeFi, an Ape-X product.
Keeping it simple:
When you can’t even understand the documentation how can you DYOR? GGDAO, and MemeFi in general is setting out to change this. We will work to make sure the apes can ape no matter their IQ. WAGMI
DAO Governance:
Ape-X and GG holders will govern the DAO.
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