Occam’s Proposal for Graviton
“Keep it simple, stupid” — The KISS Principle.
“Entities should not be multiplied beyond necessity”- William of Ockham
Based on months of research & development, establishing partnerships and growing the community, we have noticed that operational processes, release pipelines and maintenance are becoming more and more complex. Primarily, the complexity lies in the necessity to integrate multiple chains at the same time (even non-EVM ones) while trying to keep the overall system decentralized and scalable. In other words, multichain is a huge engineering challenge and it needs to be decomposed and broken down into modules to be tackled effectively. To handle this complexity, we are gradually moving from our original approach to engineering, creating experimental architectures towards reducing the dependency on legacy concepts and tech.
The core idea of Graviton remains the same:
Graviton is a Multichain #DeFi liquidity booster that uses Reflection Farming
This means that Graviton is designed to boost organic liquidity for different assets on different chains via incentives coming from its farming allocations. The less liquidity assets have on different chains, the more fundamental value Graviton can bring to those assets and their holders, users, traders, investors etc. This fact was the reason for the original focus being directed towards wrapped assets bridged from one chain to another. However, the current stage of our market helps to reevaluate which use cases can see benefit from Graviton (we initially called them #LOLT — lack of liquidity assets):
1 — wrapped assets
2 — new projects
3 — CEX tokens
4 — CEX-only coins (most of 2017/2019 projects)
5 — new chains
6 — fractionalized NFTs or tokenized NFT collections
7 — vaults, LPs, synthetic (mirrored) assets
Although all of the aforementioned categories of cases are #LOLT, and the liquidity of assets mentioned there can easily be boosted across all chains, this list is not in any way complete and it seems likely that more #LOLT cases on the market can be found later. It is crucial for the solution to be scalable for ANY token on any chain and ideally be fully permissionless, for it to be able to provide value to #LOLT tokens.
Reflection Farming (RF)
At the basic level, RF is a combination of two cryptoeconomic design primitives: 1 — staking and 2 — farming. Staking can be seen as farming for a virtual AMM pool with the same asset placed on both side, like GTON/GTON. The more GTON in staking, the more rewards are sent to this pool participants per a certain time period. Thus, RF can be represented as TOKEN/GTON staking where rewards are being sent to the pool in the proportion of how many GTON is locked in the LP. This approach is self-sustainable and creates a positive feedback loop for LP providers and farmers: when the TOKEN’s price is growing, the increase of GTON in the pool leads to more rewards for LP farming. This is also pushing GTON’s price up due to arbitrageurs buying it from the market to arbitrage with the TOKEN. On the other hand, when the TOKEN is losing valuation, there are less GTON rewards, and therefore fewer farmers begin to choose this pool.
To sum up, we are focusing on Reflection Farming as a product solution and Relay Liquidity as GTON’s main utility.
Simplicity brings effectiveness
To make Reflection Farming fast and secure, we have to reduce the level of unnecessary complexity. The key aspects that need simplification are:
- Early Birds allocation & unlock schedule: this can be achieved by instantly making the allocation fully claimable. A strong advantage of unlocking EB is that it allows the new tokens of the Graviton ecosystem (Candyshop and OGSwap) to become available in the form of IDO to GTON. After the complete unlock, token holders have the opportunity to buy allocations in these tokens themselves. For instance, during the IDO, $CANDY will be released into an AMM pool with GTON — $CANDY/$GTON, meaning that the only way to buy it is to exchange $GTON to $CANDY.
- Governance Staking & Voting: Staking has to be kept only as a part of the token economy, and governance shall be moved to off-chain DAO voting powered by Snapshot. The locked EB allocations cannot be handled for such votings via Snapshot, therefore the unlock is necessary.
- Oracles for Multichain Farming: re-engineering the oracles for farming and relay swaps to utilize DONs (decentralized oracle networks) provided by Chainlink.
Liquidity is the key thing
For the project to be successful, its founders have to focus on the liquidity of its coin. At this point, as noticed by some of our community members, GTON lacks liquidity. This needs to change in order to fully realize the initial proposal that states that funds collected into the treasury should be used mostly for liquidity provision.
The core idea that is being put forward in this proposal is to start focusing on GROWING liquidity. The scheme is simple: use the stablecoins from the treasury to convert them into native tokens and most liquid coins on different chains, and finally pair those as liquidity to the GTON. Pairing GTON to ETH/BTC/FTM/BNB and other DeFi “blue chips” will launch an organic market-making activity for GTON and reveal a range of new opportunities for it as a Relay Token across multiple chains. The volatility inherent to these assets creates the necessary dynamics required for arbitrage and trading opportunities, thus supporting the activity around GTON. The need to open up the circulating supply coincides with the bullish market sentiment, and therefore GTON’s volumes and liquidity, while being put against volatile assets, will be naturally stimulated by market forces.
Options for liquidity
- Spend 80% of the stablecoins in the Treasury to purchase native tokens and the most liquid coins, and 20% to purchase stablecoins
- Spend 50% of the stablecoins in the Treasury to purchase native tokens and the most liquid coins, and 50% to purchase stablecoins
- Deny proposal
As all of you should know, I’m a strong proponent of DeFi and I am absolutely certain that the approach mentioned above will work in the long term, independent of new market corrections.
Aleksei Pupyshev, founder of Graviton.
Follow the Twitter announcements not to miss the start of the voting.
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.