Growth DeFi is going Cross-Chain

This post aims to explain the next steps for Growth DeFi, why it is going cross-chain, when it will happen and how it will work going forward.

Why go Cross-Chain?

There are four main reasons for going cross-chain

• Lower transaction costs
• Faster transactions
• TVL and composability for other chains and L2 solutions has been increasing rapidly in 2021
• Bigger addressable market
• Higher overall yields by combining opportunities from multiple chains

The rAAVE to gROOT migration

A snapshot of rAAVE liquid balances will be taken the 20th of February, you just need to hold your rAAVE in your Ethereum address by the time the snapshot is taken (remove the liquidity from Uniswap pools before the snapshot to receive the airdrop).

A few days after the snapshot is taken the airdrop will take place,this requires no interaction from the user, they just have to change from the Ethereum mainnet to the BSC (Binance Smart Chain) mainnet and the gROOT tokens will appear in their wallets.

To use the tokens in the ecosystem it is recommended to get some BNB either on Binance or swapping from other chains such as Ethereum through the Binance Bridge.

In the case of gROOT the benefits of being on BSC instead of Ethereum are:

• Free gas cost airdrop (no need to spend gas fees on claiming).
• More efficient liquidity mining (providing liquidity on Pancake Swap costs less than 1$ whilst it’s over 200$ for Uniswap using last week’s average).
• Higher diversification and lower costs for the treasury (it has access to the yield opportunities of both Ethereum and BSC).
• Ability to buy gROOT with any amount due to (lower) BSC fees and get exposure to the entire crypto ecosystem with (higher) yields.

How do I setup a wallet on BSC (Binance Smart Chain)?

You can use your existing Metamask wallet you already have, no need to even make any new wallets.

How to setup MetaMask to connect to BSC Mainnet

Switch the connected blockchain by clicking on the tab saying Main Ethereum Network, we need to add the Binance Smart Chain network.

Scroll down until you find Custom RPC.

Enter in the BSC mainnet details as follows:

• Network Name: BSC Mainnet
• New RPC URL: https://bsc-dataseed1.binance.org/ or https://bsc-dataseed2.binance.org/
• ChainID: 56, or 0x38 if 56 doesn’t work
• Symbol: BNB
• Block Explorer URL: https://bscscan.com/

Click Save.

You have now connected to the BSC mainnet with your Metamask Wallet.

To use the tokens in the ecosystem it is recommended to get some BNB either on Binance or swapping from other chains such as Ethereum through the Binance Bridge.

The basics of gROOT

GROOT has three key concepts:

• Expand the treasury and track the crypto and DeFi benchmark with yields on top of it (at launch it will start investing heavily in Pancake Swap pools, farming and compounding CAKE).
• Provide great liquidity to gROOT by incentivizing the BNB/gROOT pair amongst others, this makes it easy to entry and exit gROOT regardless of the amount.
• Reward its token holders through buybacks when the marketcap/treasury ratio is low.

The tokenomics of gROOT

Supply Distribution:

Total supply: 20,000 gROOT

rAAVE Swaps: 2,000 gROOT (There is 2,855 GROOT in circulation so 1 rAAVE will be swapped for 0.7005 gROOT)

Multiyear Liquidity Mining Incentives: 8,000 gROOT

Treasury expansion: 10,000 gROOT

SAFE Airdrop

The SAFE airdrop will happen on BSC, no claiming is required.

Expanding the reach of GRO

One of the core ideas of GRO is automatizing yield strategies, generating performance fees with them and buying back GRO with it to reward stkGRO holders, becoming a cross-chain project allows GRO to expand its available yield strategies and the userbase, it also enables having small holders get higher yields.

We have been looking at different options to go cross-chain or expand to L2s, some of them are (BSC, Polkadot, Optimistic Ethereum, Polygon (Matic) and Loopring), in the end we have decided to start with Binance Smart Chain for the following reasons:

• High composability (It has amongst others the two key protocols for yield strategies, an incentivized AMM (Pancake Swap) and a money market protocol (Venus).
• Easy to setup for users coming from Ethereum (Setting up a BSC wallet from Metamask is very easy as can be seen in this guide).
• Rapidly growing TVL and userbase, Pancake Swap recently surpassed the 800 MM $ TVL mark.

Cross-chain bridges

In the future bridges will be used connecting the yield tokens in different chains, one example of this would be bridging PMTs V2 to BSC, enabling anyone to acquire exposure to Ethereum yield markets whilst paying the very low fees BSC has to offer.

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