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The distribution of future admin fees is based on the entire quantity of $GFI, therefore if $GFI is burned and the total supply is decreased, the value of the remaining supply is directly boosted thus users receiving more rewards.

Gravity Finance - Earn passive ETH and BTC by holding GFI!

When we discuss tokenomics in relation to GFI, we consider the underlying principles and long-term value as well as the justification for the token's value.

Admin Fees
"Admin Fees" (or Platform Fees) are generated by all Gravity Finance products. Through each product's smart contract, these administrative fees are automatically collected from various sources. For instance, the Gravity Swap Exchange levies a modest percentage admin-fee on each swap executed on the exchange.

Some products charge fees in various ways, such as the auto-compounding vaults, which deduct a small portion of the reward's claimed value as a fee, and the IDO Launchpad, which has customizable fees that are deducted as a commission from the money raised for projects on the Launchpad.

As seen in the figure above, the majority of admin fees are transformed into wrapped ether (wETH) and wrapped bitcoin (wBTC) at a rate of 50% each. The $GFI Token Holders receive the wETH to claim and various methods exist depending where the $GFI Tokens are actually being held or used.
The wBTC are transmitted to the GFI Governance Contract, where they collect and serve as a physical backing for the GFI token in the form of bitcoins, which can be redeemed at any moment by GFI holders in return for permanently burning an equivalent number of GFI Tokens.
The distribution of future admin fees is based on the entire quantity of $GFI, therefore if $GFI is burned and the total supply is decreased, the value of the remaining supply is directly boosted thus users receiving more rewards.

Admin Fee Distribution
As was already noted, depending on the product, the administrative fees are handled differently, in contrast to how the fees collected by the Vaults (i.e. Performance Fees) are handled, the Swap Exchange admin fees are converted to wETH and wBTC and dispersed to GFI holders;

Holding $GFI
A user can directly claim wETH revenues from the Governance Smart Contract if they have GFI tokens in their wallet (or by using the portal on the Governance Page on the website). A user who has GFI in their wallet at the time of distribution will be eligible for a larger share of the distributed wETH based on the number of GFI tokens they had in their wallet when the admin-fees were processed.

Future Implementations
Gravity Finance is currently working on a number of innovative and exciting products that they will bring to market, these include lending and borrowing (Loans), Derivatives trading, customised investment strategies and more. "Admin Fees" will be generated for all goods. By enabling users to trade, lend, borrow, join fascinating IDOs, and set up either sophisticated or straightforward automated operations in the defi sector, Gravity Finance hopes to become a focus of activity on the Polygon network.

We personally can't wait to see what their Silos can do!

Project Links:
Website - https://gravityfinance.io/
Medium - https://gravityfinance.medium.com/
Telegram - https://t.me/gravityfinance
Twitter - https://twitter.com/Gravity_Finance
Documentation - https://inthenextversion.gitbook.io/gravity-finance/
Audits - https://github.com/ObeliskAuditing/obelisk-audits/blob/main/Gravity.pdf
Whitepaper - https://api.gravityfinance.io/documents/GravityFinanceWhitePaper.pdf


Written By

Petrache Ionut

Jul 17, 2022