The aim of this post is to help users understand better how GRO’s supply is currently distributed and what are the value accrual mechanisms for GRO once rAAVE and PMTs V2 are launched.
Supply Distribution (15th of January 2021)
GRO Treasury (499,000 GRO)
Circulating Supply (331,073 GRO)
- stkGRO (211,411 GRO)
- Uniswap GRO/ETH LP (33,543 GRO)
- Liquid GRO (86,119 GRO)
Vested GRO (158,333 GRO)
Total Supply (988,406 GRO)
Portfolio Management Tokens V2
For PMTs V2 we are lowering the barrier of entry, making them easy to use and profit from for every type of user.
Here are the main changes compared to V1:
- Fees now go directly to the GRO Treasury which can be used for buying back GRO and distributing it to stkGRO holders.
- More strategies and better yields, V2 will launch with Compound, Curve and AAVE strategies.
- Lower gas costs for deposits and withdrawals, up to 80% gas reduction compared to V1.
- No deposit or withdrawal fees (in V1 there’s a 1% deposit/withdrawal fee).
- Implementation of performance fees, the protocol only profits if you do so too.
- No management fee.
- More supported tokens (ETH, WBTC, LINK, DAI, USDC, USDT, sUSD, GUSD, EURS, UNI, COMP, AAVE, SNX, MKR, CRV, KNC, BAT, ENJ).
With the implementation of V2 the protocol will become a cashflow generator for the treasury which will in turn put buy pressure for GRO and distribute it to stkGRO holders, it also becomes much easier to use and profit from given the lowered gas costs, the added strategies and the new fee model.
There will be a dedicated post to the tokenomics of rAAVE but here is how GRO benefits from it:
- First big investment of the GRO Treasury to generate profits for stkGRO holders.
- More liquidity and utility for GRO with the GRO/rAAVE incentivized pool.
- Higher TVL and revenue from the rAAVE incentivized LPs (there is a 10% performance fee for the GRO treasury for compounding the rAAVE given as incentives into more liquidity tokens).
- Higher TVL and revenue from the new PMTs V2 held by the rAAVE treasury (if the rAAVE treasury is holding gETH in its portfolio to generate yield on top of ETH exposure for example).
- More governance value for stkGRO since it will now control both GRO’s and rAAVE’s treasury.
- Future implementations of incentivized pools matched with PMT.
- Exposure to more markets.
stkGRO is the token you get from staking GRO, it has a 10% fee when staking and unstaking of which half gets burnt and the other half is distributed back to the remaining stkGRO holders.
The main features of stkGRO are:
- It receives the profits generated by the GRO treasury and the protocol fees.
- It is the governance token of the GRO ecosystem.
- There is a staking and unstaking fee to penalize short term stakers and reward long term stakers.
- The staking fees make GRO deflationary, in less than 2 months stkGRO has burnt over 11,600 GRO.
The GRO treasury is managed by the stkGRO DAO, its current portfolio is:
- 499,000 GRO
- 18.86 ETH
As explained above once rAAVE launches it’ll have a big position in its incentivized LPs and with the launch of PMTs V2 it’ll have a constant stream of incoming tokens including ETH, WBTC, LINK and stablecoins, which will be used for putting buy pressure on GRO and distributing the purchased GRO back to stkGRO holders.
If you have any questions feel free to join our Telegram and ask.