GRO: The Core of Growth DeFi
GRO is the governance and profit-sharing token of the Growth DeFi ecosystem. It governs over all the chains and products released. In this article, we cover all the benefits that come with holding GRO, including governance, staking, and direct revenue-sharing.
GRO as a Governance Token
One of the core features of GRO is that it governs the entire ecosystem across all chains. Users can stake their GRO on any of the supported chains to participate in governance, and on top of that, they can also be farming WHEAT for having their GRO staked.
GRO’s DAO gives GRO holders the power to decide over all the parameters of MOR, including where the system surplus (accumulated protocol profit) goes, along with other parameters, such as stability fees (borrow fees) and performance fees.
GRO as a Deflationary Token
The Growth DeFi ecosystem has its own incentives token called WHEAT that is used to incentivize certain behaviors such as providing liquidity and staking native tokens, enabling users to get a yield on their GRO, MOR, and much more.
The result of this is that GRO doesn’t suffer from any supply dilution/inflation from liquidity mining/farming incentives. The current circulating supply is approximately 277k GRO out of a max supply of 581k GRO, which is already down from a starting supply of 1 million. Uncirculating supply is held by the treasury to be used for marketing and development purposes.
Since no new GRO can be minted, that means its supply is capped. And so through the burns that happen through different mechanisms, GRO becomes deflationary. These mechanisms include:
- Crosschain Bridge Fee
5% of all GRO bridged is burned. The purpose of this fee is to capture the majority or arbitrage profits generated by having different trading pairs in each chain (GRO/BNB and GRO/AVAX is a good example). The second purpose of this fee is to reduce the supply from those individuals bridging to stake and farm WHEAT on a new chain due to the high APY.
2. System Surplus Buybacks
System Surplus from MOR is the profit accumulated by the protocol through several revenue sources such as stability fees/borrow fees, liquidation penalties, and swap fees applied to the Peg-Stability Module (PSM).
3. GRO treasury buybacks
The GRO treasury can use its surplus funds to buyback and burn GRO.
GRO as a Staking Token
One of the core ways to incentivize GRO holders for participating in governance is by rewarding stakers. On each chain that Growth DeFi builds, there is a WHEAT-incentivized pool for GRO stakers.
This ensures GRO holders are well-rewarded for both holding GRO as well as participating in governance.
GRO as a Crosschain Opportunity
The Growth DeFi ecosystem is designed to be expanded to many different chains. It is currently live on BSC and will be going live on Avalanche in October.
Other chains that GRO and the Growth DeFi ecosystem will be available on in the near future include Arbitrum, Starknet, Fantom, Polygon, and Optimism. Given GRO has a fixed supply, and will have governance and staking benefits on each of these chains, the value for each one individually becomes ever greater as the Growth DeFi ecosystem expands.
Conclusion
GRO has everything you could wish for all packed into one in a rapidly expanding DeFi ecosystem, including:
- Governance over all DAOs on all chains
- Profit-sharing from MOR’s surplus
- Deflationary, constant burning of the supply
- Staking rewards via WHEAT
