Vaultka
Search
⌃K

gDAI Leverage - WHISKEY

gDAI Leverage has features of:

  1. 1.
    1.Multiplied rewards from gDAI in terms of DAI real yield
  2. 2.
    2.Dynamic reward split mechanism that WHISKEY holders pay the leverage cost only when they gain
​

Approach

gDAI itself can only be minted and redeemed by DAI and it does not consist of other crypto assets. Therefore, gDAI is considered as delta-neutral under the assumption that DAI is always pegged at $1. In view of the delta-neutral nature, the risk uptake of adding leverage to this type of single-asset Perp DEX LP is limited as the liquidation scenario can be relatively controlled with the single asset nature.In WHISKEY, leveraging is achieved through borrowing extra funding from w-WATER at a cost of reward splitting.​
​

Workflows

Step 1: “Manager” simulates and determines the amount of to-be-borrowed DAI from w-WATER
Step 2: “Manager” checks the availability of w-WATER and determine whether borrowing is proceeded or no
Step 3: The borrowed DAI is combined with injected DAI in WHISKEY Vault to mint gDAI on Gains Network
Step 4: ”Debt-to-Value (DTV) Monitor” and “Liquidation Monitor” continue to update and monitor the latest health of WHISKEY
Step 5: Reward is split to w-WATER upon each DTV update according to the latest Utilization Rate of w-WATER (details)

Health Monitoring Mechanism & Others

DTV Dynamic Update

The Debt-to-Value Ratio will be updated in below scenarios:
  • New entry to / withdrawal from WHISKEY
  • gDAI price change is over +/- 2%
  • Constant time interval - 8 hours
(The DTV dynamic update will be implemented in WHISKEY v2; while v1 currently supports one-off reward split to w-WATER when users unstake their WHISKEY position)
​

Withdraw Locks

There is a timelock (or delay) between the withdrawal request and the actual withdrawal on gDAI vault, and so does WHISKEY. This timelock varies based on the collateralization ratio of the gDAI vault.
Collateralization ratio of gDAI vault
Timelock
>=120%
1 epoch (3 days)
110%-120%
2 epoch (6 days)
<110%
3 epoch (9 days)
Withdrawal requests can only be executed in the first 2 days (48 hours) of each epoch.