GrowthDeFi’s Updated Roadmap
This post aims to give an overview on the the products we have working on and will be releasing in the coming weeks and months.
Throughout February and March we have been working on many things and we are finally close enough to share more information about everything that is going to be happening in the short and mid term future.
The GRO Bridge will be launched in March and it will enable GRO holders to move their tokens between the Ethereum and BSC, this is important because GRO (BSC) will be a key token for the products that we’re developing both for DAO and profit-sharing.
Aditionally this same bridge could be expanded to other chains (easier if they are EVM compatible) and it can also make cross-chain yields available, by wrapping a yield strategy in one chain into a token and wrapping it into another chain, this is one of our long term goals for making yield arbitrage easier.
The goal with gROOT is very straightforward, increase treasury size and cashflows whilst rewarding gROOT holders loyalty with BNB, that is why the introduction of gROOT Harvest is significant, we want to switch the model for gROOT from incentivizing holding by farming more gROOT to staking it and receiving BNB proportionally to the cashflows the treasury is generating.
There will be an 11% fee when staking or unstaking, paid in BNB according to the market price of gROOT at the time, this fee will be distributed in the following way:
7% goes to increasing the treasury size (Larger treasury = Larger Cashflows = More BNB for gROOT Harvest)
3% is used to market buy gROOT and is removed from circulation
1% is used for development (Remember that gROOT has a 0% team allocation)
Why should there be a staking and unstaking fee?
There are three main purposes for having a fee:
- Increasing the treasury size without selling gROOT
- Buybacking gROOT automatically
- Having a fee means that a smaller % of the gROOT supply will be staked, less staked = more BNB per staked gROOT
- Lower the sell pressure by disincentivizing unstaking
GRO Yield works in the same way as gROOT, and it gets most of its BNB from core products such as strategy tokens and PMTs.
The purpose of both gROOT Harvest and GRO Yield is creating a strong utility for the tokens, lowering sell pressure and encouraging compounding (pushing prices higher).
WHEAT: High-Yielding Strategy Tokens and PMTs
We are also looking to introduce strategy tokens and PMTs to BSC yield opportunities, starting with PancakeSwap strategies.
After seeing the approach that other projects have taken to incentivize the usage of their protocol we have figured out a way to make it GROw sustainably overtime.
The main problem that all this tokens suffer from is hyperinflation, they subsidize heavily usage of their protocol and most of the fees generated are used to buyback the token at its all time high which ends up in a dead token and project a few weeks or months after it started.
In order to solve this we are going to take a different approach, in the case of PancakeSwap strategy tokens there will be a deposit fee and a performance fee, both of which are paid in CAKE LP Tokens, they will be sent to a contract whose only purpose is to stake the LP tokens, collect the CAKE and buyback WHEAT and GRO.
With this system there is always money buybacking WHEAT and GRO to sustain its price in the long run (the contract spends the “interest” which is the CAKE being farmed and keeps the “principal” which are the LP tokens held in the contract).
The short term goal after the launch of WHEAT and its first strategy tokens will be to build up the LP tokens positions, the long term goal is to buyback more WHEAT than the amount being issued per day (this will happen eventually and is accelerated by either a faster growth of the LP token balance or a drop in the price of WHEAT, making buybacks cheaper).
How does this benefit GRO?
This benefits GRO in three main ways:
- First of all there’ll be a GRO/BNB pool incentivized with WHEAT.
- Secondly, a portion of all the CAKE farmed goes to buybacking GRO and distributing BNB for GRO Yield.
- Higher Yields for stkGRO
How does this benefit gROOT?
This benefits gROOT in two main ways:
- First of all the treasury can be more profitable in the long run by sticking with WHEAT strategy tokens and products
- Secondly, there’ll be a gROOT/BNB pool incentivized with WHEAT, stopping any inflation currently coming from gROOT farming.
Why would anyone hold WHEAT?
The long-term value proposition of WHEAT is strong as the LP token balance is perpetually increasing and you can get very high APRs/APYs by staking your WHEAT or providing liquidity for BNB/WHEAT to compensate for the temporary inflation.
This is a very brief overview on the tokenomics of WHEAT, there will be a post entirely dedicated to it very soon.
There are many products we are considering to add to the GrowthDeFi ecosystem as it evolves, some of the ones we’re considering are an options protocol on BSC which uses PMTs to get yield and gets premiums from selling call and put options (this would also allow hedging from the side of miners, investors and also liquidity providers who might be worried of their LP token $ worth position going down when yield farming).
We are also exploring the possibility of offering fixed yield products to offer more consistent and predictable yield opportunities.
The tokens of the GrowthDeFi ecosystem
GRO: Core token of the ecosystem, has governance rights over everything, it’s deflationary, gets a share of revenue from anything that is built.
gROOT: A diversified way to invest into GrowthDeFi products such as strategy tokens, PMTs and more, all needed to do is stake gROOT into gROOT Harvest and claim BNB profits overtime (or compound it for a higher APY).
WHEAT: High-Yielding token by staking it or providing liquidity for one of its pairs, inflationary in the short term, deflationary in the long run.
We are excited to finally share some more details about what’s coming for the GrowthDeFi ecosystem as a whole and what it means for the long term future of GRO, gROOT and WHEAT.
If you have any questions feel free to join our Telegram and ask.