Equations
Last updated
Last updated
Swaps between GIZA and sGIZA during staking and unstaking are always honored 1:1. The amount of GIZA deposited into the staking contract will always result in the same amount of sGIZA. And the amount of sGIZA withdrawn from the staking contract will always result in the same amount of GIZA.
The treasury deposits GIZA into the distributor. The distributor then deposits GIZA into the staking contract, creating an imbalance between GIZA and sGIZA. sGIZA is rebased to correct this imbalance between GIZA deposited and sGIZA outstanding. The rebase brings sGIZA outstanding back up to parity so that 1 sGIZA equals 1 staked GIZA.
GIZA has an intrinsic value of 1 DAI, which is roughly equivalent to $1. In order to make a profit from bonding, Giza charges a premium for each bond.
The premium is derived from the debt ratio of the system and a scaling variable called BCV. BCV allows us to control the rate at which bond prices increase.
The premium determines profit due to the protocol and in turn, stakers. This is because the new GIZA is minted from the profit and subsequently distributed among all stakers.
The debt ratio is the total of all GIZA promised to bonders divided by the total supply of GIZA. This allows us to measure the debt of the system.
Bond payout determines the number of GIZA sold to a bonder. For reserve bonds, the market value of the assets supplied by the bonder is used to determine the bond payout. For example, if a user supplies 1000 DAI and the bond price is 250 DAI, the user will be entitled 4 GIZA.
For liquidity bonds, the market value of the LP tokens supplied by the bonder is used to determine the bond payout. For example, if a user supplies 0.001 GIZA-DAI LP token which is valued at 1000 DAI at the time of bonding, and the bond price is 250 DAI, the user will be entitled 4 GIZA.
GIZA supply does not have a hard cap. Its supply increases when:
GIZA is minted and distributed to the stakers.
GIZA is minted for the bonder. This happens whenever someone purchases a bond.
GIZA is minted for the DAO. This happens whenever someone purchases a bond. The DAO gets the same number of GIZA as the bonder.
GIZA is minted for the team or the DAO.
At the end of each epoch, the treasury mints GIZA at a set reward rate. These GIZA will be distributed to all the stakers in the protocol.
Whenever someone purchases a bond, a set number of GIZA is minted. These GIZA will not be released to the bonder all at once - they are vested to the bonder linearly over time. The bond payout uses a different formula for different types of bonds. Check the bonding section above to see how it is calculated.
The DAO receives the same amount of GIZA as the bonder. This represents the DAO profit.
Every GIZA in circulation is backed by the Giza treasury. The assets in the treasury can be divided into two categories: stablecoin and non-stablecoin.
The stablecoin balance in the treasury grows when bonds are sold. RFV is calculated differently for different bond types.
For reserve bonds such as DAI bond, the RFV simply equals to the amount of the underlying asset supplied by the bonder.
For LP bonds such as GIZA-DAI bond, the RFV is calculated differently because the protocol needs to mark down its value. Why? The LP token pair consists of GIZA, and each GIZA in circulation will be backed by these LP tokens - there is a cyclical dependency. To safely guarantee all circulating GIZA are backed, the protocol marks down the value of these LP tokens, hence the name risk-free value (RFV).