🔥Lets Get $LIT

To be able to explain this as simply as possible, think of the $GDS(Golden Drip Share) token as the Golden Goose. Given the right conditions, it will lay golden eggs.

In the same way, the $GDS tokens staked (which means deposited for a period of time) will print a certain amount of $LIT for you as a reward every epoch —which is six hours as long as the TWAP or the peg, which we’ve referred to previously, is 1.01 $UDSC and above.

So we know that Golden Drip Share(GDS) prints money. But how does it work? Even if you had a golden goose, you would need to ”feed it” and tend to it for it to lay the precious golden eggs. How do you keep your golden goose happy? Here are the conditions to keep your golden eggs coming

NUMBER 1: The goose can’t go hungry! | TWAP at 1.01 $USDC and above, You need to make sure your golden goose isn’t hungry. (GDS TWAP or Time-Weighted Average Price shouldn’t be below 1.01!) The goose is well-fed when the TWAP of $LIT needs to be at 1.01 USDC or above.It seems like something out of your control. How do we help keep the TWAP up? TWAP is about GDS’s time-weighted average price, it depends on the price of $LIT. Like anything in the real world, scarcity means the price goes up, and surplus means the price goes down. If you convert the $LIT (golden eggs) that you earn straight away, you’re ”dumping” your $LIT — making your golden eggs less precious. So don’t swap your $LIT. We’ll explain more later on.

NUMBER 2: House your goose | Stake your shares in the Water Bucket. The goose needs to be put somewhere secure. In the same way, you need to stake (or deposit and lock) your GDS in the Water Bucket .Owning GDS won’t earn you any $LIT unless they’re staked in the Water Bucket. That means depositing them for a locked period of a couple epocs. 1 epoch is 6 hours.

NUMBER 3: point is related to the first point. Feeding your goose is one part, but ensuring that you can sustain feeding it (having enough supply in the long run) is another thing.

In some algorithmic stablecoin projects like ours, what happens is that people enjoy the golden goose rewards so much, they buy more golden geese. Meaning they just keep amassing GDS tokens. Some people dump their LIT rewards and swap them for GDS tokens. Nothing is wrong with that, but if you keep doing that, you’re dumping the golden eggs and their value, including the TWAP that allows it to print, will go down a well.

So don’t keep buying more geese. Do what it takes to ensure that the goose will lay eggs at all.

The way to do this is to just hold your LIT or create a liquidity pool.