Pains and motivations
Last updated
Last updated
GT3 is a mobile-first and next-generation DEX capable of addressing some of the most well-known issues in the ecosystem of AMMs and liquidity pools:
DEX only work without problems over PC browsers. There wasn't any mobile-first DEX in any blockchain that was fully operative.
But users spend their time on mobile phones; this is a reality. They don't spend their life on PCs.
So, if we want to onboard billions of new crypto users, we have a problem: they have mobiles, most don't even have PCs, and no one understands conventional wallets.
GT3 was born to solve this massive problem: it is the first DEX wholly designed for mobile, operating with a Web3 biometric wallet and integrating an on-ramp system from fiat.
GT3 talks user's language but works over decentralized infrastructures. We are focused on new DeFi users who want to onramp in DeFi through their mobile phones.
We define conventional liquidity as that generated in Uniswap v2 models (where liquidity providers deposit their LP tokens into a farming contract to receive incentives) and v3 models (where liquidity providers receive NFTs associated with their liquidity positions along the bonding curve, earning incentives if they are within range).
These methods of liquidity creation have proven to fail in the traditional sense, as they create very difficult-to-solve problems:
Token value loss is directly proportional to the inflation generated.
Attraction of mercenary liquidity, with constant and periodic withdrawals.
Misalignment of incentives between projects and LP holders: projects want to capture liquidity and value (price), while LP holders wish to earn commissions by going short via farming (v2) or fees (v3), decapitalizing the projects in terms of price and TVL.
Low liquidity exists for most "non-rockstar" protocols, and TVL cannot be increased without falling into the previous problem spiral.
There is difficulty sustaining the model in the long term, as token issuance for incentives always has a set end date.
In GT3, unlike a classic DEX or AMM,
Users can onboard perfectly from their mobile phones, even with zero-DeFi knowledge.
They get their own Web3 wallet (ERC4337+ERX7212, called 'HumanWallet'), easy-to-use with their biometry.
Users can swap any token in DEX with the best price markets. GT3 has its own liquidity pools and is connected with all kinds of liquidity routes with third parties to bring the best price swaps to the DEX.
There is no concept of Staking or Farming, but rather GT3 lockers (who decide which pools should be incentivized) and LP holders (who provide liquidity to the pools).
Projects incentivize rewards for the GT3 lockers who support their liquidity pools during each cycle (1 month).
GT3 lockers are users with GT3 who stake it to create xGT3, a synthetic token that gives them voting power and the ability to receive fees and incentives.
GT3 lockers vote each cycle on which pools they prefer to incentivize: through game theory, more incentives will be directed to these pools for the LPs, leading to larger pool sizes. This aligns the incentives of GT3 lockers with those of the projects and, consequently, the LP holders.
GT3 lockers will receive fees from all trades in the pools they support and rewards from the projects. According to game theory, the pools with the most liquidity will be able to execute the most trades (and thus generate the most fees), as they will offer better pricing conditions.
LP holders will receive the incentives generated from the GT3 vault.
In our DEX model, we believe the incentives of all stakeholders are sufficiently well-aligned for both the GT3 token and the listed tokens to capture value and liquidity. Through game theory, the projects will compete in each cycle to see which becomes the most relevant to NFT holders in terms of attracting liquidity."
