This is the third of the “Gro Renewed” series on how Gro protocol upgraded to offer higher yield stablecoin products, an updated tokenomics, and user interface improvement. Read on to find out what’s changed!
TLDR: Labs are getting an upgrade to bring you better, continuously released yields that anyone can access today at app.gro.xyz/labs
It’s been 3 months since the initial launch of Labs, where we limited access to our most committed DAO members with 500+ Gro DAO tokens. This has given us time to gather great feedback from Labs users — thank you to everyone who took the time to share your thoughts!
We’re thrilled to unveil the upgraded Labs built upon your feedback! Here is what’s new:
- More efficient returns through better managing how we realise gains
- Continuous release of yields through building a profit buffer to avoid lumpy yields
- Open access to everyone who’s interested in exploring Labs with higher allowances given to those who have 500+ $GRO
For those not familiar with our Avalanche-based product Labs, read here about our initial launch in early December and here for a step-by-step guide to start using Labs.
More efficient yields
The upgraded Labs will bring more efficient yields through optimizing AVAX exposure and improving how we realise gains with lower slippage.
When a strategy cycle is live: AVAX price movement used to trigger Labs into closing a strategy cycle if AVAX goes beyond a price corridor set when the cycle started. While it is crucial to manage AVAX exposure, we identified other methods to keep exposure in check without closing the position entirely. When AVAX ventures outside the price corridor, the upgraded Labs will trim AVAX holding proportionately instead of closing the strategy cycle. This helps us manage AVAX exposure without cutting off a live strategy cycle at a loss.
When a strategy cycle ends: AVAX exposure used to be set to zero immediately after closing a strategy cycle. This allowed us to maintain market neutral whenever a cycle ends i.e. no exposure to AVAX price movement. Operationally speaking, this means Labs sells off AVAX tokens regardless of price at the end of a cycle, which could be sub-optimal as price may rebound soon. Instead, the upgraded Labs will gradually sell off AVAX tokens in the 60 hours after closing a strategy cycle to enable better strategy economics.
Slippage would be reduced as we change AVAX exposure management outlined above. In the original Labs, selling all AVAX tokens in one go led to greater slippage as pools have limited depth (especially in AVAX/DAI), benefiting arbitrage bots that could then come in and swoop up AVAX at a lower price. The upgraded Labs would now split up transactions to sell AVAX tokens in portions, allowing AVAX price in the pool to recover through arbitrage in between transactions and reduce slippage as a result.
Continuous release of yields
The upgraded Labs will continuously release yields over three days, so you don’t have to wait until the current strategy cycle to end before realising gains.
Why does it matter? With changes to how we manage AVAX exposure, strategy cycles will be live for as long as 3 days. It’s sweet to see a big chunk of gains being realised at the end of a strategy cycle, but that would also make users experience a long wait before seeing their gains even though it’s accruing in the background. This is why we’ve enabled continuous release of yields to help you better visualise the gains you’re making.
Would I get these yields when I withdraw my funds? Yes absolutely — the continuously released yields are not just for display; they’re available for you to take home! As we’ve promised when we first launched Labs — your yields are in pure stablecoins that you can get any time with no waiting or vesting required!
Open access
After having had more time to observe Labs performance under different market conditions and receive feedback from users, we believe it’s now time to open Labs access for all!
Every wallet would now receive a $15K deposit allowance in Labs, equally split among the three stablecoin vaults ($5K per vault). This gives everyone a chance to try using Labs and understand how it saves users from having to continuously monitor your leveraged yield farming positions. After all, there is no better way to learn about Labs than doing it yourself — head over to Labs and experience first-hand how it works!
More committed DAO members with 500+ $GRO tokens are eligible for $75K deposit allowance in Labs ($25K per vault). Love what you’ve got so far with the original Labs? Come migrate to the upgraded Labs and get deeper into automated leveraged yield farming!
To get started, simply follow the instructions on Labs page and move funds from Inactive Labs tab to Active Labs. You would need 500+ $GRO tokens in your wallet, or pools, or vesting contracts to be eligible for claiming deposit allowances in the upgraded Labs. When you get to Labs, you’d only be shown Inactive Labs where you have a positive balance.
Once the migration is completed, Inactive Labs will disappear to give you a more streamlined dashboard with the active labs only. The original Labs has been switched off for depositing and no longer harvests — your funds are now safely stored in the original Labs ready for migration but will not generate further yields.
