Fees generation
"The $GT3 token has an aggressive fee generation policy, penalizing users who 'leave' or act against the protocol and rewarding those who support it by distributing the fees generated through a synthetic token: xGT3.
GT3 --> staking GT3 --> creation of xGT3
1. How is xGT3 created and destroyed?
Issuance/entry: The user locks their GT3 in a specific staking contract. If they hold xGT3, they will receive the fees associated with the pools they voted for at the end of each period (Epoch or Cycle). Each open position is an NFT. 1 GT3 = 1 xGT3 at maximum lock (2 years).
Burning / exit: Since each position is an NFT, the GT3 will be locked until the contract's expiration date (from 3 months to 2 years). If the user needs liquidity, they must sell their NFT at the price determined by its expiration date, the price of GT3, and the expected fees they could receive during all remaining cycles.
2. Why does the user need $xGT3?
To vote in the DAO and decide on the following projects to be listed.
To decide which pools will receive the most incentives in each cycle.
To receive the fees generated from the pools they voted for.
3. Listing of Generated Fees
As mentioned, GT3 has a fee generation policy associated with each pool, and these fees will be distributed among the xGT3 holders."
Swap
0.10% buying | 5% selling
Rewards claim
1%
Unstaking (xGT3)
not applied
Unfarming
20% to 0 days | 1% from 180 days
Incentives per pool votation
85% of fees generated in those pools
4. Fees sharing
The xGT3 proposes a very simple mechanism through monthly cycles: 85% of the fees generated will go to xGT3 holders, and 15% will go to the DAO Treasury. The goal is to make it self-sustainable and ensure that each cycle has a new GT3 budget to inject into the following cycle.
Although GT3's first pillar is the generation and distribution of fees among holders who support the protocol (promoting staking with real utility), its second pillar is related to making the pools more liquid, starting with GT3's own pools.
5. Example of fees generated in a cycle
The objective of this section is to show a simple example of the fees that could be generated during 1 month of operation (1 cycle) at full capacity, assuming the following hypotheses:
1,000 claim operations, volume $100k
Purchases for $100k, sales for the same amount
Unstaking $100k, unfarming $100k
Operations in third-party pools $1MM (50% in purchase, 50% in sale)
Unfarming in third-party pools $500k
Total fees collected: $92,000 ($78.2k to xGT3 holders and the rest to the Treasury)
If the protocol had an amount similar to the current staking contract (13.47M tokens) staked as xGT3, this would imply a monthly return of 48% and an annualized return of over 500% APR.
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