$gDEX Token
Last Update: January 2024
Last updated
Last Update: January 2024
Last updated
DexFi Governance (gDEX) is a fixed-supply, deflationary governance token that embodies ownership across all of DexFi's products and services. It plays a central role in the DexFi ecosystem, enabling holders to stake their tokens to share in the profits generated by the dexDAO. Designed to drive community engagement, the gDEX token serves as a cornerstone for fostering long-term value and aligning the interests of all stakeholders.
Of the revenue generated by dexDAO, 80% is channeled directly to gDEX stakers. This is carried out during weekly epochs, where the previous week's revenue is distributed among all gDEX stakers.
At the end of each week, the protocol calculates the revenue generated and prepares to distribute 80% of it to the gDEX stakers. This weekly distribution mechanism ensures continuous rewards for the community members who stake their tokens.
gDEX can be staked to earn real yield generated by the protocol. Users have the flexibility to deposit directly into the main staking contract to earn USDEX+ or allocate their position to vaults, enabling options for compounding and/or receiving rewards in an alternate profit token.
The total supply of gDEX is capped at 120,000. However, the protocol aims to burn tokens over time, reducing the supply back to ≤ 100,000. This deflationary mechanism is expected to add value to each token by reducing the available supply.
10% of the dexDAO revenue goes to protocol owned liquidity (POL) in the USDEX+/gDEX LP in dexSWAP.
This mechanism adds buy pressure to the gDEX token. Each time liquidity is added, gDEX will need to be purchased from the LP before being added as liquidity.
Being protocol owned, means that the protocol itself maintains 100% ownership of the liquidity, ensuring robustness and long-term sustainability and negating the need to reward liquidity providers freeing up revenue for distribution to gDEX stakers.
In addition to revenue-sharing and liquidity mechanisms, the dexDAO has an active treasury investment strategy. After covering essential operational costs, such as infrastructure maintenance and development costs, any overflow in the treasury is allocated for distribution to gDEX token holders.
This further aligns the financial interests of gDEX holders with the long-term success of the dexDAO ecosystem. By participating in this overflow distribution, token holders not only benefit from the protocol's direct revenue but also share in the gains from savvy treasury management.
The inclusion of treasury overflow as a distributable asset to gDEX holders amplifies the value proposition of holding and staking gDEX tokens. It serves as an additional financial incentive that distinguishes gDEX from other tokens in the DeFi space, making it a compelling option for both short-term gains and long-term investment.
gDEX holders enjoy enhanced rewards through our newly introduced Booster Fund. Certain vaults are now eligible for additional incentives via ETH injections into boosted vaults, creating an attractive opportunity for increased yield. These boosted vaults are powered by a dedicated Boost Treasury, which strategically invests in select vaults to generate ongoing returns. Profits from these investments are claimed monthly and funneled into the boost contract, ensuring the sustainability of these bonus rewards over the long term. As our treasury expands, we remain committed to strengthening the Boost Program by allocating additional funds to this account, further enhancing the value for our users.
Access gDEX staking:
For more information on liquidity, please view the Dune analytics for DexFi's native liquidity pools:
View active gDEX Boosted vault:
View gDEX Boost Treasury:
