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I'm very intrigued by @GambitProtocol $GMT, one of the few actually interesting projects on BSC that's more than just a clone.
The protocol combines Leveraged Trading and a collateralized, interest bearing stablecoin, somewhat similar to Synthetix
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The protocol combines Leveraged Trading and a collateralized, interest bearing stablecoin, somewhat similar to Synthetix
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Getting the flashy stuff out of the way first, mainnet just launched and farming yields are huge, high 3 digit APR on GMT and 4 digit APR on xGMT pool 2s.
So what is GMT and xGMT?
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So what is GMT and xGMT?
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The tokenomics for this project has a few neat features that I really like, although it is a bit complex. The main tokens of the system are:
USDG - Interest bearing stablecoin
GMT - Governance Token
xGMT - Fee Capture Token
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USDG - Interest bearing stablecoin
GMT - Governance Token
xGMT - Fee Capture Token
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USDG is Gambit Protocol's interest bearing stablecoin that is used as a standard unit of collateralization in the system, somewhat analogous to Synthetix sUSD. It can be minted with a handful of assets, USDC, USDT, ETH, BNB etc.
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Because USDG is backed by this basket of collateral assets, it can be used as the hinge to swap between them with no slippage.
Additionally a portion of trading fees and margin borrow fees goes to USDG holders, so it is a natively interest bearing collateralized stablecoin!
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Additionally a portion of trading fees and margin borrow fees goes to USDG holders, so it is a natively interest bearing collateralized stablecoin!
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GMT is Gambit Protocols governance token. Current mcap (and FDV) is $21m, so plenty of room to grow if the platform takes off.
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xGMT is the token being issued for the current liquidity mining program. xGMT is, like USDG, entitled to claim fees generated by the protocol.
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One critique I have is that having both GMT and xGMT seems redundant. From reading the medium posts I gather that xGMT is used for liquidity mining and fee catpure rather than GMT to get around regulatory issues.
I expect governance to vote in a GMT/xGMT merge at some point
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I expect governance to vote in a GMT/xGMT merge at some point
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The UI of Gambit is very clean and easy to use. Taking a leveraged Long or Short position works just like trading on Uniswap/PancakeSwap with the addition of a button to chose 2x, 3x, 5x leverage.
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If there's two things we know crypto natives love it's trading on leverage and earning yield. @GambitProtocol is a very interesting approach to providing both of these services. I think it has a great chance to gain significant traction and trading volume
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