What is Genie Protocol?
Genie Protocol is a decentralized finance (defi) protocol that allows users to purchase sets or "funds" of tokens governed by Genie Dao. It is the first protocol for buying sets or "funds" of native multichain tokens, such as Binance Smart Chain (BSC) and Ethereum.
The Genie Dao is responsible for governing the protocol and will make decisions through voting. The GNP token is the governance token of the Genie Dao and will be used to determine the evolution of the Genie Protocol.
Users can buy sets of ERC20 and BEP20 tokens with a single transaction through the Genie Protocol. The sets, composed of different tokens, will replicate the trend of the most capitalized tokens by category, making them "funds" or index sets. For example, top defi, top lending, top NFT, etc. The sets will be managed directly by Genie Dao or by skilled users, known as "managed funds or sets." In the future, they may also be managed by a specially trained AI.
To minimize the risk of adverse selection and moral hazard on the part of managers, user-managed funds will have several limitations. For instance, there will be limits on the exposure to certain tokens, which will become more stringent the smaller and less capitalized the token chosen by the manager. The Genie Dao can decide to remove or make more stringent these limits by voting.
Genie Protocol will interface with different Automated Market Makers (AMMs), such as Uniswap, Pancakeswap, Sushiswap, etc., to find the best market prices and weight purchases according to the best conditions.
When a user invests using Genie Protocol, they will be allocated a token representing their share of the fund upon completion of the transaction. This token can be used to redeem their investment in a way similar to tokens representing a share of a Liquidity Pool. The token representing a share of a fund will be an ERC20 or BEP20, allowing it to be freely transferred to a secondary market created by individuals.
Users will be charged an entry fee when purchasing a "fund" or set of tokens through Genie Protocol. Similarly, when disinvesting, the user will be charged a performance fee. The entry and performance fees will cover the cost of gas and buy back tokens from the GNP/BUSD Liquidity Pool on Pancakeswap. The bought tokens will be redistributed to hodlers through staking.
During the early stages of Genie Protocol launch, there will be four different staking pools available to distribute GNP Governance tokens to the community gradually. The four staking pools will have lock-in periods of 30, 90, 180, and 360 days, distributing more tokens for the same amount of time in the longer pools.
For example, in a 30-day period, for every 100 GNP allocated in the first 30-day pool, 200 GNP will be allocated in the 90-day pool, 400 GNP in the 180-day pool, and 800 GNP in the 360-day pool. Over the same period, the pools will have these multipliers: x1 for the 30-day pool, x2 for the 90-day pool, x4 for the 180-day pool, and x8 for the 360-day pool.
If Genie Dao wishes, it can burn all or part of the tokens bought through the commissions generated by Genie Protocol through the buyback, making GNP potentially deflationary. In conclusion, Genie Protocol is a promising defi protocol for buying sets of tokens governed by Genie Dao.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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