FAQ

What is Gambit?

Gambit is a decentralised leverage trading exchange and a stable-coin platform. On Gambit users can stake whitelisted assets (on launch: BTC, ETH, BNB, BUSD, USDC, USDT) for USDG. These whitelisted assets facilitate swaps and the opening of leveraged positions.

How does Gambit work?

Gambit utilises three tokens, GMT, xGMT, and USDG, each fulfilling its own purpose.

• GMT is a governance token that has ownership of the ecosystem and votes on new products, fees, treasury use, etc.

• xGMT is a yield-generating token that receives fees from people using Gambit.

• USDG is a yield- generating stable-coin. Users can mint USDG by depositing whitelisted assets, creating liquidity for swaps and trades.

For more details on how Gambit works: https://gambit.gitbook.io/gambit/protocol

How does Gambit generate fees?

The Gambit protocol will generate fees from the following:

• 0.2% fees for minting and burning of USDG

• 0.2% fees for swaps through the protocol

• 0.1% fees for stable-coin swaps

• 0.1% fees for opening and closing of leverage positions

• 0.06% * (utilisation ratio) borrowing fees, every 8 hours, for leverage positions

How are the fees distributed?

The distribution of the net fees from the protocol is:

• 20%: xGMT holders

• 20%: USDG holders

• 50%: Deposited back into the protocol to over-collateralise USDG

• 10%: XVIX project

There will be a 'claim' button on the Gambit site. Gambit calculates rewards based on your wallet address and its respective transaction history. This means you can buy/farm xGMT, hold it for a week, sell it, and still be able to claim your rewards. There is no need to claim first and then trade like on some other platforms.

What is the value of the GMT token?

GMT is a governance token, with a total supply of 401,469 (598,531 having been burnt from the original supply of 1,000,000). It will be used to govern the Gambit ecosystem. This includes voting on: whitelisting new assets, strategic partnerships, integration with other DeFi products, and fee structures for both existing and new products. Additionally GMT holders will control the 23% treasury fund of xGMT and all the fees that go with it.

What is xGMT?

xGMT is a yield-generating token. It receives fees from the trades, mints, and zero-slippage swaps conducted via Gambit. The total supply is 100k.

How do I buy xGMT?

The supply of xGMT will be distributed to GMT holders via a liquidity distribution event. This means GMT holders can pool GMT/USDG and receive xGMT in return.

NOTE: There will be an initial 'bootstrap liquidity' added by the team to help establish a price point. This is a small amount (ca. 50k USD value) intended for farmers to add their own tokens to. In the first few hours this liquidity will be quite small so the price impact for buys/sells will be very high. It is advisable that people wait for the liquidity to deepen before buying.

How do I buy USDG?

Once farming begins it will be possible to purchase USDG via Pancake Swap. Even so, because USDG is a stable-coin pegged to 1 USD your best bet is to mint it via the Gambit platform. To mint USDG you must deposit a white-listed asset. You can redeem USDG at any time for its dollar-equivalent value.

Where and when do I mint USDG?

There will be a minting button on the platform when then mainnet is live.

When is the mainnet live?

The mainnet will launch on 28 April 2021.

How do I farm xGMT using my GMT?

You must mint an amount of USDG equivalent to the value the GMT you wish to use. Then on Pancake Swap you simply add USDG and GMT liquidity, then stake your pool tokens on the Gambit site.

Are there risks involved?

There is always a risk of 'impermanent loss' when pooling your tokens. This is inherent to how AMMs like Pancake Swap work. Impermanent loss is a reduction in both gains and losses. So if your tokens increase in value by 200%, due to impermanent loss your LP will be worth only 150% more. A general rule of thumb is IL is a 20% tax on gains and a 20% refund on losses compared to straight holding. Nonetheless, we have been working very hard to ensure that xGMT emissions offset IL. An advantage of pooling with USDG is that half of your LP tokens are generating rewards while you stake.

What form will these rewards be in?

The distribution of the fees is in the form of BNB rewards.

Why have three tokens instead of just one token?

Let's start with USDG. Large scale trading and swapping necessitates deep liquidity. To generate this liquidity there needs to be a low-risk, income-generating asset to incentivise depositing. Because this asset is pegged to 1 USD, it is a direct competitor to USDC/USDT/BUSD/DAI, all while generating a yield.

Now to address the GMT/xGMT split. During numerous discussions with our peers in the DeFi world we realised that if we want to achieve the scale & scope we have the potential to, with hundreds of millions of dollars in cross-chain asset-swaps alongside tens of millions of dollars of leveraged trades, it was important to ensure we were as regulatory compliant as possible. This meant ensuring that tokens that we sold in a presale (GMT) were not expected to receive a dividend of any sort.

We can achieve this by separating fees from governance on launch. Doing so paves the way to aggressively expand and pursue strategic partnerships. We also saw an opportunity to reward our community for their ceaseless commitment to our vision. This is why we burnt the entirety of our treasury and team GMT tokens, reducing net supply from 1 million to 401,469. Additionally, when formulating the tokenomics of xGMT we reduced the treasury stake. Now the community owns 100% of GMT, and 72% of xGMT. In a situation where the two market caps are equal, this would mean the community owns 86% of the protocol.

I have no experience with farming, what should I be doing on launch day?

Farming, especially in the very beginning, can be unpredictable. Typically, staking GMT/USDG for xGMT, then compounding into the xGMT/USDG pool, will be the optimum risk/reward strategy. It is important to note that in the first few hours there could be a lot of volatility during xGMT price discovery. We will have a temporary seed of circa 50k USD value in the xGMT/USDG pool to help accelerate this price discovery. The tokens for seeding this pool will come from team USDG and treasury xGMT. Once the bootstrapping phase has ended and community liquidity is deep we will withdraw the bootstrap liquidity. We will donate any incidental profits from IL back to the community. For those inexperienced with farming who do not want to take any risk whatsoever, the best strategy will likely be to swap a share of their GMT to xGMT. Doing so when the liquidity is deep enough to minimise price impact.

NOTE: During the very first few hours of the distribution it is common for there to be sharp spikes in the price of assets. This is normal and will stabilise as liquidity grows. Always make sure you have price targets you deem are fair and do not FOMO in if you see the price suddenly skyrocket in the very beginning!

Won't distributing xGMT to farmers cause them to dump their tokens right away?

This is often the case for very short lived farms where there is no token utility. Because xGMT generates fees from real utility Gambit provides to traders, a fair market value will form. This should mitigate dumping. Even so, because liquidity in the beginning will be low, some volatility is to be expected.

What is the duration of the distribution event?

Tokens are distributed linearly over a 9 month period. Details of emissions and their reductions can be found in the medium article here: https://gambitprotocol.medium.com/gmt-staking-827440d024d2

How many tokens does the team have?

The team fund has zero GMT tokens, and will have 5% (5,000) of xGMT tokens. These are vested for 2 years, with monthly unlocks beginning one month after mainnet launch.

What are the plans for marketing?

The Gambit team's development ethos is that a good product is the lynchpin of a successful marketing campaign. This has been the guiding principle from the beginning and has informed every decision we have made with respect to tokenomics, waiting for an audit before launching, ensuring regulatory compliance whenever possible, and looking to the community for feedback. In keeping with this culture we have been working tirelessly to have a smooth, robust, viable product working before initiating a marketing campaign.

A working product that actively generates returns gives us the leverage needed to negotiate with other major players in DeFi, many of whom have already been communicating with us. We intend to pursue these partnerships aggressively and engage the wider DeFi community through a series of outreach programs. Finally, our team's combined experience in DeFi/crypto has shown us that the demand for on-chain leverage is extremely high. So once the platform is live and facilitating trades, we will be poised to absorb a great deal of this demand.

Why did you launch on Binance Smart Chain?

We wanted to deploy on a chain where people could use our product and use it a lot. We did not want to be gatekept by high fees where only whales can afford the barrier to entry. We have also been actively following Ethereum's development and we know that Optimism seems to be right around the corner. Therefore we wanted a chain that would make deploying on Ethereum post-Optimism easy. BSC met those criteria and we couldn't be happier with the results.