What is Gambit (GMT) | What is Gambit Financial token | What is GMT token
In this article, we’ll discuss information about the Gambit project and GMT token
Gambit is a protocol for creating interest-generating stablecoins backed by leverage. GMT token is the governance token that manages the distribution of the protocol’s fees. Fees are generated on minting gUSD, burning gUSD, opening positions, closing positions and funding rates.
Current stablecoin solutions typically require backing by a centralised fiat reserve or over-collaterization. With Gambit, we present a design for a partially-backed stablecoin that automatically generates interest.
Here is an overview of how the stablecoin would work:
- USDG can be minted with any whitelisted asset, e.g. BNB
- The amount minted is determined by the price of the asset
- For example, if the price of BNB is 200 USD, then 1 BNB can mint 200 USDG tokens
- Assets in the system can be used by anyone to open a long position
- Longing maintains the collateral backing the system while generating fees that can be paid as interest to USDG holders
An example for further illustration:
- The price of BNB is 200 USD
- Alice sells 1 BNB to the system and receives 200 USDG in return
- With 1 BNB, the system allows anyone to take up a long position against it
- Bob opens a 2X BNB long position by depositing 1 BNB
- The system now has 2 BNB
- If the price of BNB increases to 210 USD, the system would now have 420 USD worth of BNB, it can pay Bob 220 USD worth of BNB and still have 200 USD worth of BNB to back Alice’s 200 USDG tokens
- If the price of BNB decreases to 190 USD, the system would now have 380 USD worth of BNB, it can pay Bob 180 USD worth of BNB and still have 200 USD worth of BNB to back Alice’s 200 USDG tokens
- If the price of BNB decreases to 100 USD, Bob would get liquidated, the system would not owe Bob any BNB, but it would still have 200 USD worth of BNB to back Alice’s 200 USDG tokens
Maintaining the Peg
Since USDG can be minted without being over-collaterized, maintaining the peg when the price of USDG is above 1 USD would be taken care of by arbitrage.
When the price of USDG is below 1 USD, USDG can be burnt for the backing collateral at a rate of:
0.9 * (collateral in system) / (supply of USDG)
For example, if the system has 1 BNB and the supply of USDG is 200, then 1 USDG can be burnt for 0.0045 BNB, if the price of BNB is 200 USD this would be equivalent to 0.90 USD worth of BNB.
Collateral in opened long positions will be taken into account for the redemption calculation. Additionally, since USDG can be minted with multiple whitelisted assets, each asset will track its own redemption price, forming multiple backstops to help maintain the peg. The 0.9 factor in the floor price formula will result in the system increasing its ratio of collateral against USDG debt whenever USDG is redeemed.
It is possible for the redemption price to exceed 1 USD if the price of the underlying collaterals increases by more than 10%, . To avoid this scenario, the redemption price will be capped to a maximum of 0.997 USD.
Benefits
Some benefits of Gambit:
- Unlike purely algorithmic stablecoins or overcollateralized stablecoins, supply can meet demand at a 1:1 ratio
- The ability to mint USDG with no slippage and no spread using any whitelisted asset gives USDG an in-built utility
- The system can have a very large amount of liquidity and range of assets for anyone to open a long position with no slippage and no spread
- Fees are generated on minting USDG, burning USDG, opening positions, closing positions and funding rates
- A portion of the fees can be distributed to USDG holders, making USDG the first stablecoin with its own interest generating mechanism. Interest can be earned just by holding USDG, without having to lend it out or deposit it into another system
- The majority of fees can be kept within the system to increase its liquidity. Over time, this would grow the size of the assets backing USDG and allow the peg to be maintained even if the price of the underlying assets decrease
Distribution
The Gambit (GMT) token will be the governance token that manages the distribution of the protocol’s fees. Fees are generated on minting USDG, burning USDG, opening positions, closing positions and funding rates.
The Gambit token will be distributed as follows:
- Liquidity Mining (30%): Rewards to incentivise providing liquidity
- Presale (20%): All funds raised will be used to provide initial liquidity as well as to hire additional team members
- XVIX Buyback (20%): Gambit is a project from the XVIX team, as such, XVIX holders are given a one-time option to swap their XVIX for GMT tokens, this swap will end before the end of the Gambit presale
- Treasury (15%): Managed by Gambit governance
- PancakeSwap Listing (10%): Locked liquidity paired with funds raised from the public sale
- Team (5%): Distributed evenly over 2 years
Gambit Token Info
- Listing price: 5 USD
- Total supply: 1 million GMT
- Circulating supply on listing: 500,000 GMT
- Market cap upon listing: 2.5 million USD
- Fully-diluted market cap: 5 million USD
Gambit Presale
20% of the total supply (200,000 GMT tokens) will be distributed through a presale:
- Presale price: 4.5 USD
- Whitelist slots: 500
- Individual cap: 2000 BUSD
- Hard cap: 900,000 BUSD
Presale Timeline
- 1 Mar 2021: Whitelist opens
- 3 Mar 2021: The whitelist will close if more than 400 slots have been taken, if not, the whitelist will remain open
- 4 Mar 2021: Whitelisted presale opens
- 7 Mar 2021: Whitelisted presale closes, it will be closed earlier if the hard cap is reached
- 8 Mar 2021: GMT will be listed on PancakeSwap using 50% of the BUSD raised from the presale
Development Timeline
- 1 Mar — 8 Mar 2021: Gambit token distribution
- 9 Mar — 26 Mar 2021: Gambit contract development and tests
- 29 Mar — 9 Apr 2021: Gambit UI development
- 12 Apr 2021: Gambit beta launch
How and Where to Buy Gambit (GMT) ?
GMT is now live on the Binance mainnet. The token address for GMT is 0x99e92123eB77Bc8f999316f622e5222498438784. Be cautious not to purchase any other token with a smart contract different from this one (as this can be easily faked). We strongly advise to be vigilant and stay safe throughout the launch. Don’t let the excitement get the best of you.
Just be sure you have enough BNB in your wallet to cover the transaction fees.
You will have to first buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)…
We will use Binance Exchange here as it is one of the largest crypto exchanges that accept fiat deposits.
Once you finished the KYC process. You will be asked to add a payment method. Here you can either choose to provide a credit/debit card or use a bank transfer, and buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)…
Step by Step Guide : What is Binance | How to Create an account on Binance (Updated 2021)
Next step
You need a wallet address to Connect to Pancakeswap Decentralized Exchange, we use Metamask wallet
If you don’t have a Metamask wallet, read this article and follow the steps
☞What is Metamask wallet | How to Create a wallet and Use
Next step
Connect Metamask Wallet to Pancakeswap Decentralized Exchange and Buy GMT token
Contract: 0x99e92123eB77Bc8f999316f622e5222498438784
Read more: What is Pancakeswap | Beginner’s Guide on How to Use Pancakeswap
Apart from the exchange(s) above, there are a few popular crypto exchanges where they have decent daily trading volumes and a huge user base. This will ensure you will be able to sell your coins at any time and the fees will usually be lower. It is suggested that you also register on these exchanges since once GMT gets listed there it will attract a large amount of trading volumes from the users there, that means you will be having some great trading opportunities!
Top exchanges for token-coin trading. Follow instructions and make unlimited money
☞ https://www.binance.com
☞ https://www.bittrex.com
☞ https://www.poloniex.com
☞ https://www.bitfinex.com
☞ https://www.huobi.com
Find more information GMT
☞ Website ☞ Explorer ☞ Source Code ☞ Social Channel ☞ Social Channel 2 ☞ Message Board ☞ Coinmarketcap
🔺DISCLAIMER: The Information in the post isn’t financial advice, is intended FOR GENERAL INFORMATION PURPOSES ONLY. Trading Cryptocurrency is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money.
🔥 If you’re a beginner. I believe the article below will be useful to you
⭐ ⭐ ⭐ What You Should Know Before Investing in Cryptocurrency - For Beginner ⭐ ⭐ ⭐
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