$GTON and its use cases
In this article we explain the most popular use cases for $GTON, Graviton governance token.
The chief DeFi Blockchain, Ethereum, is home to numerous DeFi projects, including the biggest AMM DEXs. A vital component of automated market-making (AMM) tech is the concept of Liquidity Provider (LP) token. This token is a digital asset that represents the share of a liquidity provider in a liquidity pool of an AMM project or service. Although LP is a brilliant concept that changed DeFi forever, with the proliferation of AMM DEXes came high gas fees, illiquidity, and projects eventually vanishing after their hype cycle ends.
One of such projects that have adopted the LP token model is our cross-chain solution, Graviton, built with the philosophy of cross-chain liquidity management, multichain scalability, and seamless accessibility in mind to solve the aforementioned issues in the DeFi space.
In this post, we want to tell you more about how the project works and its potential use cases.
What is the GTON token?
The basic premise of Graviton is that the rise of multiple blockchains and the acceptance of multiple-chain technologies is essential for the DeFi space. To achieve this, we came up with a solution that is based both on new technology and unique tokenomics of $GTON, a governance token for our platform.
With DeFi evolving further, we can see, at the core of many DEX’s and DeFi projects, their native or governance tokens. Within Graviton, $GTON is much more than just a governance token.
GTON is a multichain relay token. It is used to maintain liquidity buffers on DEXs across multiple chains for initially illiquid assets, such as wrapped tokens, CEX tokens and recently tokenized projects. The ever-present liquidity of GTON allows for instant cross-chain swaps.
GTON is also a reflection farming token that can be used to launch a permissionless Liquidity Provision (LP) farm to boost any asset’s liquidity on any supported chain. $GTON’s total quantity is limited to 21 million tokens. It is unlocked following a deflationary model that slowly decreases emission. The initial GTONs are claimable on the Fantom blockchain, but only through multichain. Gradually, the holders of GTONs will be able to swap their claimed GTONs into other blockchain networks such as BSC, Ethereum, Heco, Waves, Avalanche, Tron, Polka, or Solana using multichain.xyz, SuSy, RenVM, or other bridges. We strongly believe that a token like $GTON can genuinely revolutionize the status quo of the market.
$GTON Use Cases?
- Liquidity Mining and farming:
Among many DeFi users, the concept of mining and farming is already known well. At the basis of virtually all popular chains are AMM dApps and LP rewards which help to optimize and incentivize the platforms.
To boost liquidity pools, liquidity providers (LP) join to create a network effect when they add more liquidity to a single pool. Through this, slippage in buying/selling is reduced. However, a token that exists on a single chain cannot be traded or used on another chain, and this is where a relay token or a token in the middle comes into the picture.
Reflection Farming is the primary use of $GTON and is implemented in the farming rewards. Graviton provides a designated allocation in GTON to motivate participants to provide liquidity in AMM pools created to boost tokens lacking liquidity. The allocation is distributed according to an exponential decay formula, and the share of farmed reward tokens is dynamically distributed in proportion to the amount of GTON in the pool. All pairs in reflection farming contain a GTON token, in contrast to classic farms, where farming of one token occurs as a result of providing liquidity to other tokens.
This creates a unique boosting opportunity for a variety of projects, be it recently emerged, CEX or wrapped tokens. All the farms on Graviton are permissionless, meaning that farms for LP rewards can be easily set up by the token community.
It’s noteworthy that Graviton allows for more profitable farming and therefore more intensive liquidity provision with Catalyst: the farms that are voted upon can receive an additional, higher allocation.
2. Relay or “buffer” for multichain
GTON is a multichain relay token. Relay here means that the ever-present supply in the pools to the native tokens and also to the most popular ones across a wide variety of chains and at the same time in the pools to illiquid ones, such as wrapped tokens, CEX tokens and recently tokenized projects. By maintaining this balance and using a specifically developed protocol (Relay Swap protocol) GTON allows for instant transfers of one native token to another, and with time the number of tokens proposed for such multichain swaps will only grow.
Even now, with this approach, GTON manages to maintain liquidity buffers on DEXs across multiple chains for initially illiquid assets and therefore it can be bought and traded on multiple chains, thereby keeping slippage at its lowest. In other words, GTON is used as a “multichain relay token,” which involves exchanging a native token on one blockchain for a native token on another blockchain without using a bridge.
The relay token ($GTON) may also be used to monetize the proposed system, which implements cross-chain swaps without requiring any direct swap transactions. Every transaction with GTON, for example, can deduct a small cost of roughly 0.01 GTON plus 0.01 percent of the transaction amount. The fees will subsequently be sent to GTON’s governance stakeholders.
3. Governance:
We strongly believe in a decentralized and fair system. The $GTON is not just a reward token; it also serves as a governance token for approving or rejecting a specific governance proposal for the Graviton system.
Graviton users will have to have at least one $GTON token in their governance balance before voting.
4. Fee accrual:
Fees for relay swaps and utilizing the bridge aggregator will be accrued in GTON. The accrued funds will be used to pay stakers.
5. Treasury:
Treasury is a multisig contract managed by the Graviton team and the initial supporters, chosen among the DeFi space’s most prominent participants. We created the treasury to offer early liquidity for $GTON. Treasury stores all of the undistributed $GTON allocations, LP-GTON tokens, and stablecoins placed during the Early Birds period.
At the launch, Treasury acted as $GTON’s collateral and helped with price discovery before the token’s release. By using Treasury funds it became possible to provide initial liquidity to AMM during the IDO stage, which took place right after the early-bird deposit period.
6. $GTON staking and reward program:
Staking awards are awarded on a user’s entire GTON holdings, regardless of who they are, such as early-bird, LP-GTON, or LP-wrapped assets farming prizes.
About Graviton
Graviton is a multichain liquidity and usability enhancing protocol providing relay swaps infrastructure and farming solutions. The governance of the project is implemented by Graviton DAO. $GTON currently exists on Ethereum, Polygon, Fantom, Avalanche, Heco, xDAI, Solana, and BSC.
