GND Yielding Options: zGND vs xGND Comparison
Since the first day of the GND protocol, staking xGND has been and will be an amazing option for GND investors to earn real-yield ETH. Besides xGND, our developer team recently introduced zGND, another liquid staking option built on top of the GND protocol to accommodate investors who desire more flexibility.
However, we noticed that this new, innovative zGND product has brought about some questions and debates in our community due to its similarities of it to the xGND.
In this article, we will clarify the differences between zGND and xGND and also provide some recommendations for each investing style.
Let’s start our comparison with similarities. zGND and xGND are definitely not the same things; however, that does not mean there are no similarities between the two tokens.
Similarities include the following:
- Both can be held to earn outstanding real-yield of ETH with various options of APR.
- Both allow holders access to our upcoming launchpads on GMD Launchpad.
- Both can be freely acquired by locking your GND with the 1:1 ratio, although there are some benefits in converting to xGND with our OTC and Cash-back engines.
Now to the fundamental differences between zGND and xGND:
1. Conversion/Acquisition Process
- xGND can be redeemed back to GND will the xGND:GND ratio ranging from 1:0.5 to >1:1 when using various vesting options.
- zGND can not be redeemed directly and automatically to GND by vesting. zGND can only be redeemed back to GND by market selling through available GND-zGND LP Pairs on GND Farm.
2. YIELD APR and Dilution
- There won’t be an additional ETH pool for zGND, but rather that xGND and zGND will be staked into the same yield pool. The difference is that zGND only has the yielding power equivalent to 0.5 xGND
- xGND can be staked to earn ALL of the Base APR (currently 50.4%).
- zGND can be staked to earn HALF of the Base APR (which would be 25.2%).
3. Liquidity
- xGND can not be accessed during the lock period (must be vested at a loss: immediate for 40%, 20 days for half of the amount, or 200 days for the full amount).
- zGND can be accessed and traded at any time without waiting for the lock period to end.
4. LP-Farming
- xGND can not be used to provide liquidity on GND Farm to earn extra fees.
- zGND can be used to provide liquidity through GND-zGND LPs on GND Farm to earn extra fees.
5. Staking Fees
- xGND: there is a 2% fee applied to stake xGND.
- zGND: there is a 0.5% fee applied to stake zGND.
6. Voting Power
- xGND allows holders to vote to increase the emission of their desired GND LP pools.
- zGND does not allow holders to vote.
7. Target Investor Type:
- xGND: Suitable for long-term investors who completely have their vision set on GND Protocol’s longevity.
- zGND: Suitable for investors who desire more flexibility in earning strategies and want to avoid locking their xGND for 200 days.
We hope this article has provided the answers you were seeking and brought clarity to any lingering questions you may have had.