Introducing gBCH and Goblins Cash
Our elastic supply token based on Ampleforth will power a whole new bond experience on Goblins Cash.
Goblins Cash is exploring ways to strengthen the Goblins token and provide a way for investors to re-bond without the negative consequences of selling GOB to acquire new LP tokens.
While re-bonding Goblins rewards seem beneficial for the individual investor, the practice puts consistent (and somewhat significant) sell pressure on GOB resulting in constant negative price action. While focusing on LP bonds lowers this effect by requiring only half the supplied token to be something other than GOB, the last month has shown us that this alone is not enough.
Our solution is two-pronged — offer a pegged elastic reward token to relieve some of the negative effects of re-bonding and internal bonds (taking in GOB as payment) to support further supply growth.
To achieve this we need to align individual investors and protocols and shift focus from Price Volatility to Supply Volatility (contracting when price decreases compared to target asset and expanding when price increases compared to target asset).
Our gBCH elastic token (Ampleforth) will be pegged to BCH and the supply of gBCH will expand or contract anytime its value deviates more than 5% from BCH. In addition to the 5% ‘buffer’ gBCH will have in correlation to BCH, it will also employ a smoothing feature so that price swings from supply changes will be implemented over a 10 day period. The combination of the 5% buffer and smoothing feature essentially creates a BCH stablecoin for use in the Goblins ecosystem.
In addition to gBCH, we are adding two internal bonds (Olympus Pro — gBCH & GOB) that is similar to locked staking and will allow users — a.k.a the market — to decide what is the appropriate APR for gBCH and GOB versus a protocol-designed staking emission rate. This will essentially give investors multiple options on Goblins — our current GOB staking with a variable rate but steady returns and no illiquidity and the new internal bonds with 5 days of shrinking illiquidity but a locked-in rate and the potential for even better returns.
For gBCH we will have 3 bonds initially that will payout gBCH:
- Internal Bonds — GOB and gBCH
- Reserve Bond — flexUSD
We propose bootstrapping gBCH with Goblins Cash Dao profits from bond sales. For this proposal, our first pool will be gBCH — GOB. Though we may add other pools at a later date, initially, this pool will give users access to GOB liquidity from our other two pools GOB-BCH and GOB-flexUSD allowing seamless transactions for buying and selling gBCH.
The Internal Bonds (inspired by Zeus’s whitepaper) are able to provide a market-driven APR for internal bonds (GOB) that is superior to the staking emission rate that is currently decided upon by the protocol.
The Reserve Bond will allow goblins.cash higher liquidity on all three GOB pools at DAO discretion and drive positive price action on GOB while increasing our POL.
Through all this, Goblins Cash is driving innovation by creating the 1st Olympus Pro and Ampleforth protocol — a powerful combination that works in any chain — putting us in a leading position when it comes to DeFi 2.0 innovation and primed for POL to flourish on smartBCH. Look for additional information on these new features and the associated DAO proposals in the coming days.
Long live goblins.cash!