Gemstone Finance - the first algorithmic token on the Polygon network with a 4000:1 peg to $ETH.
About Gemstone Finance
One of the main drawbacks of past algorithmic tokens - the lack of utility, leaving no good reason for anyone to want to use or hold them. To successfully maintain the peg in the long term, the team at Gemstone Finance is committed to creating value for users by developing a range of use cases across the POLYGON ecosystem.
As a result, 4 pools will be released, 2 of which have a 0% deposit fee, but a lower weight, compared to the other two pools, which have a 1% deposit fee.
Gemstone Finance — a multi-token protocol, consisting of three tokens:
| 1. | The GEM token is intended to be used as a medium of exchange. The stability mechanism, built into the protocol, aims to maintain the GEM peg to 4000:1 ETH. |
| 2. | GEM SHARE ($GSHARE) — one way to measure the value of the GEMSTONE financial protocol and shareholder confidence in its ability to keep $GEM close to the peg. $GSHARE holders have voting rights (governance) over protocol improvement proposals and future use cases in the GEMSTONE FINANCE ecosystem. |
| 3. | The primary mission of GBONDS - to encourage change in the GEM supply during the shortening epoch. When the TWAP (weighted average price) of GEM falls below 4000:1ETH, GBOND is issued, which can be bought with GEM at the current price. |
Swapping GEM for GBOND burns GEM tokens, taking them out of circulation (deflation) and helping to restore the price to 1 ETH. These GBONDS can be exchanged for GEM when the price is above the peg in the future, and also as an additional incentive for holding above the peg longer. This is tantamount to inflation and selling pressure on GEM when it is above the peg, helping to push it back towards 1 ETH.
More about defi app
Along with the initial release of 1 GEM token, another 500 GEM tokens are being minted for community development. These tokens will only be used and returned to the community in various community development activities such as invitation contests, meme contests, etc. Much of the airdrop information will be updated, based on the opinion of the community.