Staking SPHERE for gSPHERE
PreviousWhy is There Benefit to Earning oSPHERE From the Ecosystem?NextLeveraging gSPHERE to Borrow $S - The Game Changer
Last updated
Last updated
Serving as the governing and voting asset within the ecosystem, gSPHERE benefits holders with the authority to shape the construction of the SonicSphere hedge fund & the yield bearing assets that compose it, via the right to allocate oSHPERE emissions to Auction Gauges of assets that the protocol is looking to acquire. The more oSPHERE an Auction Gauge receives, the higher the likelihood is that an Auction Participant will execute the auction transaction at a reasonable price, resulting in a higher frequency of that auction repeating within a governance epoch, allowing the protocol to acquire more of the Yield Bearing Asset to which that particular auction gauge looks to acquire on behalf of the protocol. This initiative delivers 4 key value propositions. Key Value Propositions
Governance participants have complete decision making over which yield bearing assets they want the hedge fund to acquire and put to work for them in earning yield.
Obtain bribes that might be offered.
Participate in crucial deliberations and decisions regarding the protocol, outside of on chain Auction Gauge governance
Receive a weekly distribution of all yield collected by the hedge fund, from the assets that the fund acquires.
A major advantage of gSPHERE and key differentiation from the original ve33 model, is its un-lockable nature within just one week. In contrast to other ve33 models, this characteristic introduces essential liquidity to the gSPHERE token.
A further distinction & arguably gSPHERES greatest MOAT, is its capacity to enable borrowing with no ongoing interest rates or liquidation risk. Given the bonding curve's assurance that each circulating SPHERE is always backed by at least 1 $S, users exposed to gSPHERE can securely borrow up to 0.975 $S against each SPHERE staked. This borrowing mechanism eliminates the risk of liquidation since the borrowed value of $S is consistently supported by SPHERE tokens in the bonding curve.
To obtain gSPHERE, users can engage in the process of staking their SPHERE tokens. This staking process, as previously noted, involves a one-week waiting period for un-staking.
