WagmiDAO is the first multichain Reserve-backed Decentralised Exchange (RDEX). The protocol has multiple ways of acquiring capital. Every feature of it is built together in a symbiotic way to provide additional value for the token holders. Just like when you have a number of people that you want to build a team of. When everyone is at the place where they can bring the most value to the team and the product, that is when things flourish. Our platform is designed to do exactly that, by combining the most recent DeFi trends in use and leverage all of that to benefit users the most with a fair launch — by design. The following article introduces the WagmiDAO with an overview of each of its core features. It explains how we aim to combine those, with the goal to build a long-term profitable ecosystem for our users.
The whole idea of WagmiDAO is inspired by some of the best known modern DeFi protocols — Olympus DAO, Frax and the AMM DEX model. Our team decided to create an ecosystem that takes the best of each of those protocols and combine them in the most efficient way by adding our own expertise. The WagmiDAO unites the already established Liquidity Mining, with Bonds and builds an AMM DEX on top. It further introduces the partly collateralized stablecoin $FAM, which is the cornerstone of the Treasury earning yield through external protocols. All parts of the ecosystem are nourishing the Treasury, which is mainly aimed at acquiring more capital to constantly increase the floor price for the $GMI token.
What is the WagmiDAO protocol all about?
WagmiDAO is designed in such a way, that all elements of the ecosystem work in unison with the aim of acquiring more collateral at a faster pace. The protocol consists of:
• GMI token
First and foremost — the Team is fully committed to a fair launch, meaning there are no seed rounds, no private funding, nor any VCs. $GMI is the main token that everything in the ecosystem revolves around. 96% of all $GMI tokens will be obtained via Bonding, Staking and providing LP tokens to dedicated pools. Once per month, $GMI holders are going to vote on whether to increase, or decrease the $GMI token floor price.
Yes, you read right, the $GMI token will have a Floor Price. That price will be supported by the Treasury earning yield in external protocols with the use of collateral of the $FAM stablecoin. The floor price not only makes sustainability of yield farming possible, but also increases $GMI token’s value. If $GMI token price drops beneath it, the protocol automatically starts to buyback $GMI tokens! A capability that will be enhanced through our yield generation strategies on external protocols — strategies that can be voted on by the $GMI token holders.
• AMM DEX
WagmiSwap is going to be the core function of the protocol using both provided liquidity and bonds in order to ensure a stable amount of liquidity for traders. The trading fees acquired will flow back to the protocol’s Treasury which will increase the $GMI token’s floor price as explained above. So basically, for a greater part the exchange is designed to have its own liquidity and all revenue goes back to $GMI holders.
• FAM stablecoin
As stated the $FAM stablecoin is the cornerstone of the ecosystem. The $FAM stablecoin will be minted by staking USDC at a 1:1 ratio. In other words, you can mint 1 $FAM using 1 USDC. After minting, the whole USDC amount is being split 75% to 25%. 75% of the amount stays in USDC and 25% of it is used instantly for $GMI token buyback. Afterwards, all the funds acquired are being sent to the Family contract. That decreases the amount of $GMI tokens in circulation, thus pushing the price higher. The idle USDC in the Family contract will be used for earning yields in different protocols, flowing back to the Treasury increasing its value steadily to build and strengthen it as the backbone of the ecosystem. The $FAM stablecoin will also be used in various WagmiSwap liquidity pairs, providing utility and creating an opportunity for a safe yield generation (stablecoin yield farming) in the WagmiDAO protocol.
This is what we are excited about. WagmiDAO is aimed to become the first AMM DEX that owns a large part of its liquidity. Bonding means that people will be able to sell their liquidity to the protocol in exchange for discounted $GMI tokens. Every bond will mature for 5 days. For example, if the BOND price is 20% lower than the actual $GMI token price, that means you are making 4% daily on your investment. So, the protocol acquires value from the user’s purchase, while the user earns the reward — making it a symbiotic win-win-situation. After claiming the $GMI tokens, the user will be able to earn even greater yields with auto-compounded Staking.
The biggest part of the $GMI token emissions are being directed towards our auto-compounded Staking. That means token holders can automatically restake compounded interest and their tokens, and earn outstanding APYs passively while the protocol Treasury expands steadily.
The Treasury is the backbone of the protocol, which is being nurtured through various parts of the ecosystem as explained above. It is designed to grow constantly, which means that the floor price of the $GMI token will grow with it. The treasury has many streams of inflow to expand such as:
Whenever users buy bonds of various cryptocurrencies in exchange for discounted $GMI tokens the Treasury will grow.
2. Liquidity Provider fees:
The Treasury grows by receiving fees of LP tokens, which were acquired by bonds.
3. Trading fees:
Half of the trading fees will go back to the Treasury. Meaning, the higher the volume traded on the exchange is, the faster the Treasury grows.
4. Yield Farming:
The WagmiDAO protocol is going to utilize part of the funds acquired by bonding, minting/redeeming fees and trading fees to farm with them in various protocols, returning yields to the Treasury and increasing its value as well as the $GMI token’s floor price further.
5. $FAM stablecoin collateral:
The idle USDC in the Family contract is going to be used to earn yields in various protocols, returning profits back to the Treasury.
6. Mint/Redeem fees:
The protocol will receive small fees, which are deducted from each mint and redeem of the $FAM stablecoin.
Much more descriptive statistic data and graphics about Treasury growth and fund utilization are going to be provided at the WagmiDAO homepage.
All WagmiDAO features are designed to work in unison with each other.
Let’s play it through with an example and start with bonding:
- The protocol acquires LP tokens from Bonds. The liquidity behind those tokens is being used by the AMM DEX, ensuring deep liquidity for traders.
- Trading itself generates a trading fee of 0.3% on each transaction. Half of these fees are being amounted to the Treasury, thus securing the $GMI token floor price. Furthermore, by minting the $FAM stablecoin, 25% of the USDC stake is utilized for a $GMI token buyback. That leads to increased trading volume for the $GMI token, which again streams more trading fees to the protocol.
- Minting/redeeming of $FAM stablecoins adds yet more fees to the Treasury. When $FAM stablecoin minting increases, buybacks will pull out more $GMI tokens from the liquidity, thus reducing circulating supply.
All that creates an upward trend for the $GMI token price, which makes bonding even more attractive for investors.
A higher bonding rate — an increased pace of Treasury growth — a higher $GMI token floor price. That is our intention — creating an uninterrupted cycle of symbiosis!