An introductory guide to stkGRO

What is stkGRO?

stkGRO is the tokenized version of GRO that has been staked, it has a crucial role in the GRO ecosystem because it’s the governance token and a way to reward those who want to hold their GRO for the long-term.

What are the benefits of holding stkGRO instead of GRO?

Holding stkGRO instead of GRO rewards long-term behaviour, stkGRO price is calculated by its reserve ratio (GRO the contract holds / stkGRO in circulation) and this is increased by:

1-Locked Liquidity Pools

The locked LPs of some gTokens will redirect the GRO they profit from swap fees towards increasing stkGRO’s price instead of burning it directly (The Locked LPs that do this are those that do not belong to a PMT).

2-gbTokens

Everytime a gbToken is minted or redeemed a portion of the fee goes towards buying back GRO and increasing stkGRO’s reserve ratio.

3-Staking/Unstaking Fees

Instead of locking the tokens for specific time periods, a flat fee of 10% is charged whenever a user stakes (GRO →stkGRO) or unstakes (stkGRO →GRO).

Half of this fee is burnt, decreasing GRO’s total and circulating supply, the other half is used to increase the reserve ratio, this punishes those who stay the least time holding stkGRO and heavily rewards those who stay the longest.

4-Governance

stkGRO is the token that will be used for the GRO DAO, only those willing to commit for the long-term will stake thus filtering out any short-term holders from voting that would have voted otherwise thinking with a short-term mindset.

5-Reduced sell pressure & supply

stkGRO helps GRO’s price action a lot in the long-term because it is continously burning GRO and all the GRO in the staking contract is effectively out of circulation until it is unstaked (which triggers a burn, thus helping GRO & stkGRO even further).

6-And more…

Any future products launch can incorporate mechanisms that feed back to stkGRO, the possibilities are endless.

What are the disadvantages of holding stkGRO instead of GRO?

As it was explained in the benefits section, staking & unstaking have a flat fee which makes staking not profitable for any short term holders.

How do I convert my GRO into stkGRO?

It’s a very simple 5 step process:

1-Go to https://growthdefi.com/staking

2-Click on “Stake”

3-Input the amount of GRO you want to stake and approve token spending (you will have to confirm a transaction for this, wait for the transaction to complete).

4-Once the transaction has been confirmed you can now click on “Confirm Mint”.

Conclusion

stkGRO is the best place to keep your GRO if you are a long-term holder looking to have an impact through delegating/voting in the GRO DAO, it heavily rewards this type of holder by increasing their GRO worth overtime.

If you have any questions feel free to join our Telegram and ask.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Growth DeFi

Growth DeFi

Leveraging the power of DeFi protocols to maximize capital efficiency