New Chapter — GemKeeper Finance
GemKeeper.finance native token $BLING kickstarting a new chapter!
Hi GemKeeper community!
It has been quite a while since our last Blog Post, and with the BLING token launch imminent, we thought it would be beneficial to recap our successful journey so far, give some more details regarding the launch and updates on where we are going from here. Let us start with the recap!
Our Journey So Far
Since the successful GemKeeper DEX launch only 2 months ago, we have experienced a tremendous amount of growth. The protocol has grown from 200k in TVL to a high of over $10M in TVL, with TVL currently hovering around $9M. This 45x in TVL growth is an impressive achievement However, considering that the $ROSE token corrected -25% during this same period, it was truly spectacular to see this level of growth and support from the community. This achievment has no doubt been due to the trust and support we gained from our community and by constantly adding new features to the platform.
So much has happened in this short two month period: GemKeeper announced its Gem Mine LP farming contracts, its collaboration with the Oasis Protocol Foundation, its Zap feature, a collaboration with Multichain bridge and their integration into the GemKeeper UI, created a custom analytics page, the first LINK/ROSE pool on Oasis and also the first faucet on Oasis. All of these features, collaborations, and integrations, which focus on the user experience and the growth of the Oasis community, reflect the GemKeeper ethos and is something we look forward to continuing moving forward.
This ethos has also led to GemKeeper being the top DEX for Oasis native protocols to deposit their liquidity. So far we have collaborated with Oasis native protocols such as Oasis Apes Club, Mirage, Fountain, and AtreitdesDAO by supporting them with a listing and a favorable environment for them to deposit their liquidity. We are constantly looking for more ways to work and support Oasis native projects. If you know of any that are looking to collaborate please let us know!
Let it BLING
From the beginning, the goal of delaying the token launch was so that we could cultivate a community with long-term oriented mindsets and for the protocol to build fundamentals in order to provide price support moving forward. We took a different approach to other DEXs on the Oasis Network by not launching with a token and succeeded. GemKeeper has proven its ability to gain traction and grow TVL exponentially during a bear market whilst most other protocols, even across other Layer-1 networks were losing significant TVL.
Perhaps even more important than the TVL growth, is the growth in transaction volume and fees generated on GemKeeper. Last week GemKeeper had a record high for single day transaction volume ($589,714 USD) as well as weekly transaction volume ($2,252,107 USD). This is exciting news for the protocol and we think is a good initial step to creating fundamentals for the long term success of the GemKeeper protocol and BLING token. More on what this transaction volume means for the BLING token in a bit, but first we would like to go over the two new and exciting developments to GemKeeper, which will come with the shiny new BLING token.
BLING/ROSE Gem Mine
The first new addition will be the incentivized BLING/ROSE pool. This pool will be added to the Gem Mine and will have the largest weighted BLING rewards per block, with a 2.5x multiple. It is important to adequately incentivize this pool, as creating a stable token price for BLING will be imperative for the long term success of the protocol. This will not be the only use for the BLING token though, there is more.
GemKeeper Spell (xBLING)
Additionally, BLING tokens may be staked as xBLING AKA GemKeeper Spell (similar to xSUSHI AKA Sushi Bar) and earn 1/6th of the trading fees of the entire protocol. That’s right, BLING token holders will directly benefit from the growth of the protocol’s TVL and trading volume by receiving a portion of the revenue as xBLING holder. This, again, provides fundamentals for creating theoretical price floors for the BLING token. What do we mean by this? Well, using the trading volume for last week, we can calculate the fees per xBLING token per year.
Let’s do some math:
Total BLING token currently circulating = 6,000,000 $BLING
xBling Reward = 0.0005
Trading volume last week = $2,252,107
Projected yearly trading volume = $2,252,107*52 = $117,109,564
ROI/xBLING= $117,109,564*0.0005 = 58554.78/6,000,000 $BLING = about $0.01/xBLING per year
*This assumes all BLING tokens are staked as xBLING which is unlikely to be the case. If for example half the BLING tokens are in the ROSE/BLING pool then this would leave only half the BLING tokens to be staked as xBLING. This would mean the yield for xBLING would be about $0.02/xBLING.
This yield provides a fundament which should help stabilize the token price at a healthy level. For example, it is unlikely the BLING token falls to a price of $0.01 if this transaction volume is maintained as market forces do not often let an asset have a risk free yield of 100% APY (if the token price is $0.01 and it generates $0.01 per year this would be 100% APY). Especially on assets which have such strong past growth metrics as well as future growth potential, just how GemKeeper and BLING do. This was an extreme example to demonstrate the idea, but put simply, there is a price where the yield becomes too attractive and market forces create price support. As the protocol continues to grow in TVL and transaction volume, this yield becomes higher and so does the fundamental price support. For example if GemKeeper were to average its highest day of transaction volume ($589,714), the APY on xBLING would be $0.019/xBLING, assuming all BLING tokens are staked. This demonstrates just how important our protocol growth is to the yield and health of the xBLING token and our platform as a whole. So far our growth has enabled us to do exactly this, turning daily highs into weekly averages several times in the first few months and is something we will continue to strive for moving forward. Let us take a look at some of the upcoming events that will enable us to keep up this rate of growth!
GemKeeper x Oasis Foundation Airdrop
To celebrate the launch of BLING, we teamed up with the Oasis Foundation team to bring you guys a shiny Airdrop with 80,000 BLING & 40,000 ROSE. From #Brose for #Brose!
Exact details on how to qualify will be announced tomorrow at the token launch. What we can tell you now though, is that the airdrop will be centered around providing liquidity to the BLING/ROSE pair on GemKeeper as well as staking BLING as xBLING AKA GemKeeper Spell. We really want to reward the community which is actively engaging with and committed to the protocol. This has been, and forever will be our ethos.
Lending is coming!
When we said we want GemKeeper to be a one-stop shop for all your DeFi needs, we meant it! Soon after the BLING launch, we are looking forward to introducing our lending network where users can participate and earn even more rewards than the typical protocol APY/R for lending and borrowing assets. Just like our DEX, this lending network will be focused on the Oasis community. This means it will be slightly different from your standard Compound or Aave fork. We will have the ability to support Oasis native protocols that do not yet have Oracle price feeds! Of course this new lending network will share revenue with the community too, just like the GemKeeper DEX will share trading fee revenue with the xBLING stakers. More info on exactly how the lending revenue will be shared will be disclosed as we get closer to the launch of this addition to the Gemkeeper platform. Okay that’s enough alpha for now, stay tuned for the official announcement.
Double the Shine, Double the Fun!
Dual mining is ready to launch with our first Ecosystem partner in the coming days. This feature will not only allow users to earn more rewards, but also allow the platform to invite more native protocols to GemKeeper and provide them a unique solution to interact with the community and ultimately help more with the adoption. Stay tuned for the announcement in a few days.
Thank you very much for the support and commitment. We really appreciate each and everyone of you as well as all of our partners in helping to make this protocol successful. Tomorrow is an important day and will start an exciting new chapter for GemKeeper. By finally having the native token out there, many possibilities will open up and we will be able to finally play the DeFi game without handicap. We also encourage everyone to help with the initial launch and add liquidity to the ROSE/BLING pool, not only will you be rewarded in the Gem Mine and with the big Airdrop, but you will also support the protocol tremendously during this fun and exciting phase.
GemKeeper is here to stay and aiming to be #1 DeFi platform on Oasis.
