xGDL is the pool that allows users to stake their GDL tokens and mint xGDL tokens proportionally to the current GDL/xGDL ratio in the pool. xGDL will be the governance token of the Gondola and xGDL pool’s stakers will have a right to vote on official community votings about Gondola’s future developments.
2800 AVAX incentive fund is allocated to incentivize xGDL pool and it will be used to GDL buybacks and distribution of these bought back GDLs into the xGDL pool.The incentive fund will be spend in 12 weeks; first week 600 AVAX is will be used to incentive xGDL holders and 200AVAX/week is the incentive fund of remaining 11 weeks.
At the beginning of the xGDL pool, the ratio of GDL/xGDL will be equal. So , when a user stakes it’s GDL tokens into xGDL pool, the same amount of xGDL will be minted in the pool.Once first buyback and distribution done by Gondola team, the xGDL/GDL pool ratio will increase in favor of xGDL.
For example , with the current price ratio of $AVAX - $GDL; Gondola team can buy 4.006.000 GDL with 600 AVAX (First week’s fund) and distribute it into the xGDL pool. Every user will get rewards proportionally to their shares on the xGDL pool. Thereafter, GDL amount in the xGDL pool will increase and the xGDL amount will remain the same. Let’s say the new ratio is xGDL/GDL : 1.2; after buyback and distribution, new users who want to join the pool will mint xGDLs proportionally to the current GDL/xGDL ratio. ( For example 120.000 GDL must be staked into the xGDL pool to have 100.000 xGDL)
The main goal of the xGDL pool is to incentivize our community with a juicy fund and encourage them to hold their funds long term. To prevent exploitations and price attacks, xGDL pool has a 3% paper hand penalty for 3 months. At the end of the 3 months period, the paper hands penalty will be reduced to 1%. These withdrawal fees will also being distributed in to xGDL pool to increase the xGDL:GDL ratio.
Q: Why buybacks manually?
A: Our contracts have different logic from Sushiswap. The SushiMaker contract is not compatible for us. We have to collect the transaction fees manually. A detailed report of weekly buybacks and fees collected will be released weekly.
Q: What is the differences between staking GDL and xGDL?
A: The reward of single staking GDL comes from our MasterChef contract. It will be decreased because of the halving of GDL or the TVL increase. The reward of xGDL comes from the incentive funds and the transaction fees collected. It will be increase with the growth of the Avalanche ecosystems with more transactions is done on our dApp.
Q: After the end of the incentive program?
A: xGDL holders have the higher priority for the voting coming in the furture, and the incentive funds collected by our partnership will be deposited to the xGDL contract to incentize the xGDL holders.
Q: Any xGDL airdrop for loyal GDL holder?
A: No. It will be a fair launch. However, the price of GDL will be guaranteed to pump because of the incentize program.