The tokenomics of gROOT

This post aims to explain the tokenomics of gROOT, where it accrues its value from and what can you do with it.

What is gROOT?

gROOT is a token on the Binance Smart Chain (BSC) which is directly linked to the performance of DeFi in BSC by building up a treasury that holds yield farming positions in different protocols such as Pancake Swap, Auto Farm and Venus.

It focuses on incentivizing liquidity providers of gROOT pairs such as the BNB/gROOT Pancake Swap LP, doing this allows users to:

  • Have exposure to the yield farming opportunities on BSC
  • Have exposure to multiple liquidity positions instead of a single one (the treasuries can hold tens or hundreds of different liquidity positions which reduces the risk of a single token crashing down.
  • Getting more incentives by providing liquidity to gROOT pairs on top of the tokens the treasury is farming (such as CAKE, AUTO and XVS).

What is the gROOT treasury?

The gROOT treasury is the core part of gROOT.
It focuses on diversyfing its holdings and compounding several times per day.
When the price of gROOT is high relative to the treasury networth the treasury will sell some gROOT to expand its size.
When the price of gROOT is low relative to the treasury networth the treasury will buyback some gROOT to reduce the supply.

For transparency purposes all the treasury addresses are public at all times, this are the current ones:

0x6248f5783A1F908F7fbB651bb3Ca27BF7c9f5022
0xBf70B751BB1FC725bFbC4e68C4Ec4825708766c5
0x2165fa4a32B9c228cD55713f77d2e977297D03e8

How does liquidity mining with gROOT work?

There are a total of 8,000 gROOT reserved ecosystem incentives, which include incentivizing gROOT pools, the first liquidity mining pool available is BNB/gROOT, with 150 gROOT allocated to it per month.

As a liquidity provider you benefit from:

  • The liquidity mining in gROOT
  • The swap fees of the liquidity pair you are in
  • The incentives that the treasury is collecting from farming other liquidity pairs
  • The swap fees that the treasury is collecting from other liquidity pairs

You can deposit your LP tokens in the manual pool (you can claim the farmed gROOT at anytime) or in the compounding pool (the contract automatically converts the gROOT into more LP tokens in order to maximize the APY).

Note: The incentivized pools will start the week of the 22nd of February.

gROOT Initial Supply Distribution

gROOT is fairly launched, there was no presale or token sale for it and it has a team allocation of 0%.

Token Address: 0x8b571fe684133aca1e926beb86cb545e549c832d

Total Supply: 20,000 gROOT

Initial Circulating Supply (from the rAAVE airdrop): 1,500 gROOT

Initial Liquidity: 70 gROOT

Ecosystem Incentives: 8,000 gROOT

gROOT Treasury: 10,430 gROOT

You can find more info at gROOT’s website.

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

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