Galaxy Lab
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Galaxy Lab

GSD-It All Starts Here

Galaxy Set Dollar(GSD) is the first algorithmic stablecoin based on Huobi ECO Chain and fully backed by Galaxy Lab. Stablecoins play an essential role in Defi space nowadays, otherwise, the price fluctuation itself scares people away. However, Defi players still need a better solution to fulfill functionality and can not be manipulated.

Galaxy Set Dollar

GSD is a fork of ESD, a successful primitive from existing stablecoin projects. Compare to purely rebasing coin AMPL and a more complex one BAS, we believe ESD mode is the best choice on market. Purely rebasing token lack of composability, which makes it hard to integrate with the rest of the DeFi ecosystem. Also, watching the number of your tokens decrease and an autonomously changing token balance can be too much pressure on users and it not what stablecoins designed for. As for BAS mode, it kind of forms a closed ecology and can be over complexity to users.

GSD leverages a variety of mechanisms to encourage token hodlers in a game-theoretic battle that is carefully designed to drive the token price to trade at or near its peg, 1 USD.

How does GSD work?

Coupons

Whenever GSD price below 1$, DAO will issue coupons or call it debt to make it easier for understanding. Users need to burn GSD to get coupons. And users always enjoy an extra discount when purchasing coupons. Discount ratio adjusted by Debt/Circulating supply. The debt ratio in GSD is capped at 35% which implies a max of 46%.

GSD >1$

If GSD trading above the peg, the token supply needs to expand in order to push it back down. In a positive rebase event, the DAO mints an appropriate amount of new GSD. In this case, the equal amount of coupons will be redeemable for GSD and the remaining coupons (debt) will automatically be cleared. If any GSD remains after all existing Coupons have been redeemed, both the bonded DAO holders and LP will be rewarded.

GSD <1$

If GSD trading below the peg, token hodlers must be encouraged to contract the token supply as doing so will help to get the spot price back towards the peg. Users could purchase coupons with added discounts to decrease circulating supply.

GSD Parameters

Date: 12:00 UTC 12th Jan
AMM: https://ht.mdex.com/#/swap
Initial LP:10,000 GSD:10,000 HUSD
Listing Price:1GSD=1HUSD

Anti-Bot: Max 100GSD/Address for first 20mins
EPOCH: 2 Hours (1 Hour for first two EPOCHs)
Advance() incentive: 100 GSD(150 GSD for first EPOCH)

DAO Lockup: 36 Epochs
LP Lockup: 18 Epochs
Coupon Expiry: 360 Epochs

TWAP above 1 USDC where totalcoupons = totalredeemable

  • Maximum Supply Expansion: 3%
  • Expansion Percentage: twapPrice - 1 * 100 or 3% (whichever is lower)
  • Expansion Distribution:
  • DAO: 60%
  • Redeemable: 0%
  • Uniswap GSD/USDC LPs: 40%

TWAP above 1 USDC where totalCoupons > totalRedeemable

  • Maximum Supply Expansion: 6%
  • Expansion Percentage: twapPrice - 1 * 100 or 6% (whichever is lower)
  • Expansion Distribution:
  • DAO: 0%
  • Redeemable: 60%
  • Uniswap GSD/USDC LPs: 40%

TWAP below 1 USDC

  • Maximum Supply Expansion: 0%
  • Maximum Debt Expansion: 3%
  • Expansion Percentage: 1 - twapPrice * 100 or 3% (whichever is lower)
  • Expansion Distribution:
  • DAO: 0%
  • Redeemable: 0%
  • Uniswap GSD/USDC LPs: 0%

Strategy and Game Theory

If you check with the ESD and DSD players, they will always tell you Bonded and leave it along. ESD mode is designed to rewards long-term hodlers, strong hands. The best strategy for GSD is also to bond DAO and LP and waiting for the rebase rewards. Never need to worry about your token balance, unless you would like to burn GSD to get discounted coupons. Unlike ESD, LP only rewarded 20%, we believe that liquidity providers are not rewarded enough for the risk they take, also to incentives a deep liquidity pool, GSD rewards 60% to DAO and 40% to liquidity providers.

note: Galaxy Lab is a former Tron/Justswap star project and has recently been selected as a member of HECO “We Make Future”. Galaxy Lab will focus on HECO ecosystem, more projects are coming and GSD will play an important role in it.

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