Sirwin
Sirwin

Goose Finance upgrades: Vault & Leveraged Yield Farming

By CryptoGem | CryptoGem Blog | 29 Mar 2021


I'm so excited to write this guide about the new upgrades. You'll love 'em!

If you already are a Gooser you should have heard about new features being added in the near future. 

If you aren't a studied gosling or have read words like "Vaults" and "Leverage" but you haven't clear ideas about them you are in the right place!

Vault: a clever farm!

If you ever used a "farm" on a DeFi platform you know that you need to generate and deposit Liquidity Providers tokens (LP tokens) in order to be rewarded with juicy and valuable (sometimes delicious also) farm tokens.

Are you already lost? Let's start from the basics. What's a LP token?!

You probably heard about Uniswap on Ethereum or Pancakeswap on Binance Smart Chain. Well, these are "Automated Market Makers" (AMM). In a few words they allow users to sell and buy tokens. Select the token you have, select the token you want, click on swap and confirm. Done.

These decentralized services need liquidity to run the swaps. Someone has to create the market and these people are called Liquidity Providers. They simply deposit both the tokens for a given pair into the proper liquidity pool, receiving a given amount of LP tokens, which represents the user share of the total liquidity into the same pool. Liquidity Providers are firstly rewarded by the AMM with a share of the fees it charges on every swap.

Got it? Go on then!

In a simple farm you will be rewarded with the particular farm token (let's call it FEED token). Well, you know crypto is volatile... FEED value will probably change every day or even every minute. Your meals will be bigger a day and smaller the day after.

If you are a wise gosling you want to lower the risks by converting your accrued FEED into a stable token. This will guarantee you that your previous meals won't change with the time, even though your rewards won't generate further profits.

If you are a hungry gosling you want to have a greater meal every day. How can you do that? It is a simple concept:

Compounded Profit (?!)

Let's say you deposit 100$ worth of LP tokens and you are rewarded with 10 FEED tokens daily which actually worth 10$.

If you simply take the profits, after the first day you will have the same deposited LP tokens and 10 FEED which you will swap for 10 BUSD (or your favorite stable token). After the second day you will get further 10 FEED which means other juicy 10 BUSD for you. So, after the second day, in your pond there will be the starting 100$ worth of LP tokens and 20 BUSD = 20$.

If you compound the profits every meal will be bigger. After the first day you get the 10 FEED and convert them in 10$ worth of your LP token so that the day after you will have 110$ worth of LP tokens which generate 11 FEED. In this case, even just at the second day, your pond will have 121$ worth of tokens, so 1$ more than the previous scenario. If you keep compounding the profits you will generate ever more FEED and this fact could balance some negative events which can happen, like Impermanent Losses (IL) and FEED devaluation.

If you don't know what IL is, come back later and click here and a friend of mine will explain it to you.

What's the point in Vault?

If you are a clever gosling you should get that more frequently you compound your accrued rewards more you will earn on daily basis. The problems that come at this point which the Vault kindly solves for you are the following:

  • Time: to frequently compound, in order to maximize profits, you need to stay in front of the screen all day long. I know, I'm a lazy gosling and I could never do that BUT someone could. For those enterprising goslings there is a bad news, which is the second problem Vault solves:
  • Transaction fees: every time you withdraw, swap tokens or deposit you pay a fee. This could have a great impact on your profits if you think that, for a single compound, you need at least four transactions:
    • 1° Withdraw rewards from the farm
    • 2° Swap 50% of the rewards into the second token
    • 3° Provide liquidity to the pool
    • 4° Deposit LP tokens into the farm

The Vault solves everything! It will compound even hundred times a day, maximizing your profits, distributing the transaction fees among every depositors. It will do all the job, 24 hours a day and 7 days a week without any rest or nap. You only need to sit back and check your growing assets once a while, sipping your hot coffee.

Goose Vault: something extra!

Goose Vault will have something more than a simple Vault. It will give you an additional reward: Goose Dollar!

So, you won't only get the auto-compounded profits but you will be also rewarded with a fresh new stable token backed to the dollar.

What can you do with your rewarded Goose Dollar?

Well, this is the point which opens in front of you a new world and a new profitable adventure. Goose Dollars (let's shorten with GUSD) allow you to enter a new special Leveraged Farm. Let's call it "GUSD Farm".

In the GUSD Farm you can choose different pools which accepts GUSD only and each one produce a different LP token. You can farm your favorite LP tokens without any risks but only depositing your GUSD rewards, which will remain yours!

Risks will be taken by Goose Team:

For each Goose Dollar staked, Goose Finance will then stake 1$ for you into this farm. We take the risk, you take the reward.

This is the magic of a Leveraged Farm: you get three different profits:

  • Auto-compounded profits
  • GUSD, which you may eventually be able to swap with any other token
  • GUSD Farm 60% profit share

The initial seed of GUSD system will come from Goose Team:

Goose Dollar’s total supply will always be the same as the total amount of BUSD in the Goose Dollar Vault. So the initial minting will start at 2 million Goose Dollar backed with 2 million BUSD. The minting will depend on the remaining unbacked BUSD, therefore a larger amount of BUSD remaining will increase the minting speed.

If all these mind blowing changes are too much for you. Goose have an additional feature for you, quite easy:

Goose Bond: take a share from the Leveraged system

It's a one-step investment. There will be a special Goose Dollar vault in which you buy Goose Bonds, a fresh new share token.

Goose Bond buying price will be 1 BUSD each, and will grant to its hodlers pool a 5% profit share from the GUSD Farm forever.

Are you sweating too?

You provide BUSD, Goose gives you a share of 5% from the GUSD Farm profits for all your life!

You will be also able to sell back your Bond tokens. In this case you will get 0.9$ each, so only a 10% difference from the buy price.

Goosers: what for EGG hodlers?

Goosers should be sweating more than anyone else!

This brand new system will lead only advantages for EGG hodlers:

  • Goosers will have a special EGG Vault, which will auto-compound the EGG & grant to Goosers a share of the minted GUSD. So additional profits!
  • Goosers will be also able to stake EGG and earn 5% profits share from the GUSD farm, so stake EGG to earn fresh produced BUSD!
  • 1.5% of the Vault profits will be used to buyback EGG from the market and burn them. Buybacks will be distributed during the whole day, so no swing spots will be created. I'm dismayed, swingers, go plunder somewhere else.

The whole system at a glance

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Further details will be released until the official roll out. Stay tuned cause I will update this post with all the new info!

If you are excited too for these amazing news get ready: 15th April (it was 3rd. Delay due to further testing), save the date!

If you didn't know Goose Finance before, these are useful links:

 

 

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CryptoGem
CryptoGem

I'm a passionate writer about the world of cryptos. I will talk about: News on the existing coins; New opportunities, real and fake; New coins, wallet and more. Follow me to be updated!


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