Please note that none of this is financial advice. You should do your due diligence to become an informed investor by doing your own research, coming to your own conclusions, and taking note of the risks and responsibilities associated with participating in gaur.money
The team is available in Gaur.Money Discord. Please make sure to reach out if your questions are not answered here.
Why have a token that’s pegged to the price of $ETH (on a 1000:1 ratio) when you could just use $ETH itself instead?
Thats a great question.
Before we dive into what $GAUR could mean for you as an investor, let’s break down the potential impact of $GAUR long-term success on the Cronos ecosystem as a whole.
ETH is one of the most popular non-native asset on Cronos, and Gaur increases liquidity of ETH while providing high yield with reduced risks on top of the security of ETH.
“So Gaur will solve Cronos liquidity issues? I don't fully understand what that means or its implications.”
You may have read that by pegging to $ETH, $GAUR hopes to become a highly liquid, mirrored asset. What does this actually mean though?
As an example, say ETH is the world's main medium of exchange. Everything is measured in terms of ETH, whether that's your weekly salary, the price of food or a computer. And you need ETH to buy literal gas to get to the market, or to the computer store.
Now imagine if nobody wanted to use their ETH, and preferred instead to keep them stored in their wallets. Since the value of everything gravitates in relation to ETH, there would need to be something out there that is "interchangeable" with ETH, so that even if all the ETH in the world were kept in wallets, people could continue to transact freely.
Knowing that whatever they received would be able to be traded in for ETH at whatever point in time they so desired. That's what $GAUR hopes to become for $ETH in 1000:1 ratio, meaning that 1000 GAUR would equal 1 ETH.
1. “Generally speaking, what's the easiest flow to follow for compounding rewards?”
The following is NOT FINANCIAL ADVICE. It is for education and entertainment purposes only.
There are countless strategies, and which one you choose depends on your risk tolerance and short, medium, and long-term goals. That being said, the "plug-and-play" method is detailed below. Also, take some profits along the way. Don't get too greedy.
If $GAUR is OVER the peg:
-Buy $GAUR and pair it with $ETH to provide liquidity, and stake your GAUR-ETH LP tokens in the farm to earn $GSHARE rewards.
-Take your $GSHARE rewards and stake them in the Boardroom to earn inflationary $GAUR rewards.
-Sell half of your earned $GAUR for $ETH, and compound it back into the GAUR-ETH LP.
If $GAUR is UNDER the peg:
1. Buy $GAUR and exchange it for GBOND. If you are LP'ing (Liquidity Providing), you can break the LP to exchange $GAUR for $GBOND, and use the remaining $ETH to buy $GAUR to also exchange for $GBOND. Now you have a big bag of $GBOND, and you've also helped bring $GAUR back above peg so that the Boardroom can resume printing.
2. Sell $GBOND for a redemption bonus once $GAUR is back over peg (above 1.1 TWAP).
2. "What is 50/50?"
50/50 is the method best suited to provide stability for both the platform and for your underlying investment. By boosting liquidity, the 50/50 strategy reduces price volatility, and helps $GAUR stay above the peg for longer to keep the Boardroom printing. This, in turn, attracts new investors and keeps the ecosystem growing.
1) When you claim your $GAUR rewards in the Boardroom, sell 50% of them for $ETH.
2) When you go to provide $GAUR-ETH LP, stake the entirety of your remaining $GAUR with the $ETH you've just purchased.
3.“What should I do with compounding vaults?”
If you are in a $GAUR-ETH LP vault, you are creating buy pressure on $GAUR. If you are in a $GSHARE-CRO LP vault and you also hold $GSHARE elsewhere, the vault will be suppressing its price since it is continuously selling $GSHARE.
4. "APR is much higher in the Boardroom than in the Farm for GAUR-ETH LP. Why would I not just invest everything there?"
The Farm APR is linear and prints 24/7, regardless of GAUR's relation to the peg. Boardroom, on the other hand, prints only when GAUR's TWAP is above 1.01. Therefore, it may not always happen that an investor gets a higher return from the Boardroom than from the GAUR-ETH pool.
Because $GAUR follows the price of $ETH, the GAUR-ETH LP is akin to holding $ETH in your wallet, except with the bonus of a high farming APR on top of it. In other words, if you're bullish on $ETH's price action, the GAUR-ETH LP is a way of holding exposure to that single asset while also reaping high APRs.
Terms and Mechanisms
1. "What is an expansionary epoch?"
An expansionary epoch is the amount of $GAUR that is printed by $GSHARE in order to increase the total circulating supply.
To simplify the explanation with a hypothetical example, let’s say an epoch is 3 days long and there are $100 dollars in the circulating supply.
If the money printer grows the supply by 10% of the existing circulating supply each day, at the end of the 3 days you'd have 100*1.1*1.1*1.1 = $133.
Then, let’s say the emissions decrease to 5% per day.
You’d then have $133*1.05*1.05*1.05 = $153 at the end of this second epoch.
2. “What is compounding in the context of Gaur.Money?”
Earning a return on gains you've already made from previous periods is what is commonly referred to as compounding.
For example, consider a 3% daily APR on an initial investment of $100.
After 24 hours it would grow to $103.
After 365 days without compounding: $1195.
After 365 days, compounding once daily: $4,848,272.
1. "Once GBonds are emitted, does the Boardroom stop printing $GAUR until we are above peg again?”
Staking $GSHAREs will give you $GAUR rewards when the price of $GAUR is above the peg (ETH), but not when it is under the peg.
2. “What happens if I interact with the Boardroom in any way?”
Any interaction with the Boardroom will reset both timers. That's 3 epochs (18 hours) to withdraw your GAUR rewards, and 6 epochs to unstake your GSHARE (36 hours).
3. “Are the Boardroom rewards pro-rated by time? i.e If I stake three hours before the end of an epoch vs five hours before the end of an epoch, do I get different rewards?”
No, it's determined by how much you have staked at the time of printing (i.e. end of one epoch and start of the other). It doesn't matter if you stake 3 hours before or 30 seconds before the emissions occur.
4. "If I remove my $GSHARE from Boardroom without first collecting my $GAUR, will it be lost forever?"
No, it will still be there to collect whenever you need.
5. "The Boardroom APR dropped because we're in a 'debt phase.' What does this mean?"
A debt phase takes place on the expansion epochs that start after a contraction period where there are still $GBOND to be redeemed.
65% of Expansion during Debt Phase is allocated to the Treasury Fund to prepare for the GBOND Redemption. This amount is still reserved whether or not GBOND holders are redeeming bonds or not.
Once GAUR in treasury is sufficiently full to meet all circulating bond redemption, expansion rates will resume to normal.
6. "If we're in a debt phase, how long will it last until Boardroom continues printing as normal?"
The debt phase will last as long as is necessary to adequately pay back outstanding $GBOND debt. Please keep in mind that the DAO will also need to collect a little extra, as there needs to be a cushion to cover the bonuses when people redeem $GBOND over peg.
There's no exact way of calculating how many epochs it takes, since we don't know exactly when people will redeem their $GBOND. If the debt phase is ended too early, and then the treasury doesn't have enough $GAUR to repay the $GBOND bonus, then the APR restriction would need to be turned back on.
7. "At the end of the epoch, the Boardroom did not print $GAUR, and then no $GBOND(s) were issued in the Bonding. Why?"
There is a balanced state "at peg" when $GAUR's TWAP is between 1.00 and 1.01, and this means there is neither contraction nor inflation.
8. "If GAUR continues climbing above the price of the peg, will that influence how long the debt epoch lasts?"
Depending on the price of GAUR, the Boardroom print will have to adjust to provide a buffer for any unclaimed GBOND. As the price of GAUR climbs above the peg, more GAUR needs to be distributed to the treasury to account for GBOND bonus redemption.
1. “What will happen when circulating supply = Total supply? Will emissions stop?"
Yes. Once the max supply of $GSHARE (70,001) is reached, emissions stop. This is going to be in a little less than a year from the time of writing this. $GSHARE will always print $GAUR in the Boardroom, though, as long as $GAUR is above peg.
2. “Why is ‘at-peg’ (TWAP between 1.00 and 1.01) the best time to provide liquidity?”
When $GAUR is pegged or close to being pegged to $ETH, it is more akin to having exposure to a single asset (single staking) than to your traditional LP'ing experience, where you would run the risk of impermanent loss if one of the tokens went up in value and the other did not.
3. "Wait, you mean that if $ETH pumps, $GAUR pumps with it?"
Let's take an example:
If $ETH pumps in price, it won't 'outrun' $GAUR
The APR will vary in terms of its USD value, but emissions won’t. This is something that wouldn't be possible with another 1:1 pegged asset like a stable coin LP position, where the USD value is directly tied to the emissions. If $ETH rises in USD value, $GAUR goes with it. Same if $ETH falls in USD value, $GAUR will be worth less inUSD, but it won’t affect the peg. The only thing that can change the price of $GAUR in terms of its $ETH value is buying and selling it.
1.“How do vaults work?”
Staking either $GAUR/$ETH or $GSHARE/$CRO LPs in vaults rewards you with more of the same LP (liquidity pool) tokens that you have deposited. Vaults deposit your LP tokens in the same yield farms that are available to everyone on Gaur.Money, and then, every set amount of minutes, they harvest the $GSHARE that you’ve earned, sell a portion of it, and use the proceeds to mint more LP tokens on MMF, before finally depositing those LP tokens back into the Gaur.Money pools, growing your allocation.
Users can actually do this themselves if they prefer not to pay fees; it’s simply a service offered as a time-saver for those that don’t want to avoid the hassle of going through the whole process several times a day every day.
Note on the tokenomics of compounding: Both the $GSHARE/$CRO LP and the $GAUR/$ETH LP pools yield rewards in $GSHARE: If you’re in the $GSHARE/$CRO pool, 50% of your $GSHARE rewards are sold for $CRO each time you decide to compound. If you’re in the $GAUR/$ETH pool, 100% of your rewards are sold and used to purchase half $GAUR and half $ETH each time. Unlike the GAUR/ETH vault, the GSHARE/CRO vault does not put any buy pressure on $GAUR.
2. "Where else can I use my $GAUR?"
Currently, $GAUR pairs only have utility within Gaur.Money.
1. “How can I figure out what my future $GAUR rewards will be from the Boardroom?”
Simplified example for a non-debt phase: say you have 1 $GSHARE staked out of 10 total $GSHAREs staked in Boardroom, so you will get 10% of the total $GAUR emissions.
So, for this example we are assuming that there is a total circulating supply of 10,000 $GAUR, the current expansion rate is at 4%, and therefore 400 $GAUR will be emitted.
You would get ((0.04 * 10000) * 0.8) * (1/10) = 32 $GAUR.
With current regulations, this is the distribution breakdown:
- 80% of printed $GAUR goes to $GSHARE stakers.
- 15% goes to DAO-fund.
- 5% goes to the devs.
Formula to calculate your rewards: ((ExpansionRate * CirculatingGAURSupply) * 0.8) * (YourGShareStake/TotalGShareStaked)
2. “How long will it take for GShare to pay itself off from $GAUR rewards, based on current prices?”
This will vary constantly as the APR in the Boardroom fluctuates, along with other variables such as the price of $GAUR.
For a quick estimation, however, you can do the following:
1) Take the total APR shown in the Boardroom, and divide that by 365 to get the daily APR. (In this example, we will say the daily APR is 5%.)
2) Multiply that daily APR by the current market price of the total GShare you have staked to see what your daily rewards are. (In this example, we have 5 GShares, each worth $500, for a total amount staked of $2500. Your daily return is $2500 * .05, which comes out to $125/day.)
3) Take your initial buy-in price for GShares, and divide it by your daily rewards. If you bought these 5 GShares at a higher price of $700, for example, in the current market conditions you will recover your initial investment ($3500) in 3500/125 = 28 days.
3. “Does a higher TVL mean a higher APR?”
The more TVL in the pool, the less APR (there's more people getting the same piece of the pie), but the higher the price of the reward (the pie) the higher the APR (better quality of pie). In other words, although the same rewards are diluted across more investors, if those rewards have a higher dollar value because of the increase in TVL, then it can actually lead to a higher APR as well.
“I'm invested in the project for the long term, and I feel guilty taking profits. Am I still a team player if I move profits somewhere outside of the project?”
Never put all your funds in one basket, even if it's $GAUR. Always take profits along the way. Gaur team views it as a success if, over time, everyone gets their initial investment back into their wallets and continue investing with the profits that come after that.
Contractions and $GBOND
1. "When can I swap $GAUR for $GBOND?"
$GBOND will only become available in the Bonding following epochs in which the Time Weighted Average Price (TWAP) of $GAUR is under peg. This means that $GAUR's price would have had to be under 1 $ETH for the majority of the previous epoch in order to trigger the Bonding to "open".
For example: If, during the previous epoch, the ratio of $GAUR to $ETH had been 1.2 for 5 hours, but dipped to 0.9 in the final hour, the Bonding will not open, as the TWAP would be higher than 1. Conversely, if $GAUR's price is at 0.9 that of $ETH for 5 hours, but spikes to 1.25 in the final hour, the Bonding will remain open during the following epoch, since the TWAP is less than 1.
The Bonding will always open at the very beginning of a new epoch, and remain open for the entire epoch — the Bonding can not and will never open mid-epoch — and during epochs in which the Bonding is open, $GAUR will not be printed in the Boardroom.
2. "What is the formula to calculate the redemption bonus for $GBOND?"
To encourage redemption of $GBOND for $GAUR when $GAUR's TWAP > 1.1, and in order to incentivize users to redeem at a higher price, $GBOND redemption will be more profitable with a higher $GAUR TWAP value. The $GBOND to $GAUR ratio will be 1:R, where R can be calculated in the formula as shown below:
To further illustrate why the longer you hold $GBOND the more profitable it is, let's take an initial $1000 investment into consideration. In this example, say this $1000 is used to buy $GAUR when $GAUR TWAP is 0.95 and then swapped for $GBOND.
If these $GBOND are redeemed when:
-$GAUR TWAP is 1.5, your investment would now be worth $1421.
-$GAUR TWAP is 2, your investment would now be worth $1789.
-$GAUR TWAP is 3, your investment would now be worth $2526.
-$GAUR TWAP is 5, your investment would now be worth $4000.
3. "I expected $GBOND to be issued in the Bonding, but there is none. Why?"
There is a balanced state "at peg" when $GAUR's TWAP is between 1.00 and 1.01, and this means there is neither contraction nor inflation.
4. "When can I swap $GBOND back to $GAUR?"
You can swap it back again when the following two criteria are met:
1. $GAUR TWAP is above peg and
2. There is enough in the Treasury to cover the redemption.
5. "Is $GBOND right for me?"
Like anything else in crypto, obtaining $GBOND is not risk-free. Just like in the real world, you are purchasing debt from the protocol with the expectation that you will be redeemed at a premium in the future.
$GBOND is ideal for those with a medium to long-term time preference, as it incentivizes hodling in exchange for potentially extremely lucrative rewards. If you are looking for a quick flip or have short-term time preference, $GBOND may not be the right investment option for you.
6. "Please, ELI5. Why do people keep saying $GBOND is a longer-term investment?"
Say for example that you buy 1000 $GBOND and $GAUR price is $2,5 per token which results in $2500.
Then, say the market turns super bullish and $ETH goes back to $4000 and $GAUR pushes up to $5.
You could redeem your $GBOND at that point for 1100 $GAUR, which would be worth $5500.
That's a 3000$ profit compared to 2500$ without bonding.
7. "When can I redeem $GBOND for a bonus?"
GBOND TWAP (time-weighted average price) is based on GAUR price TWAP from the previous epoch as it ends. This mean that GAUR TWAP is real-time and GBOND TWAP is not. In other words, you can redeem GBOND for a bonus when the previous epoch's TWAP > 1.1.
"Why can't I swap $GAUR for another token on MMF?"
Here are a couple of troubleshooting tips.
-Try swapping $GAUR -> $CRO or $ETH directly.
-Remove decimals so that you're trading a round number of $GAUR.
-Refresh the page and try again.
-Restart your browser and try again.
-Switch to a different RPC URL and try again.
Links and further reading
1. "How long has Gaur.Money been around?"
The project initially went live on 18-12-2021 at 15:00:00 UTC. A re-launch had to be made due to a code flaw which has now been fixed. Along with the re-launch a compensation plan for affected users has been laid out, its details can be checked below. Gaur.Money v2 went live on 10-01-2022 at 15:00:00 UTC.
COMPENSATION PLAN for users of v1
Compensation will be a two fold process which includes both GAUR and GSHARE tokens.
9000 GAUR tokens will be distributed to affected users proportionally to their original holdings. Additionally we will allocate most of the dev share to compensate users long term. We have allocated 3% of the GSHARE supply to compensate eligible users who lost funds. This will also be available to claim by each address on the GAUR website. Distribution will be done with each epoch and will last the full 12 months. We have noticed that the community is eager for a project like Gaur on the Cronos network. Gaur aims to be an important part of the ecosystem going forward.
GAUR will be compensated on JANUARY 30, 12 PM UTC in 1 single time
GSHARE compensation begins JANUARY 27, 12 PM UTC and will be vested throughout 350 days