SSGT In-Depth Analysis: Token Utilities, NFT Rewards, and Governance
Yesterday, we released the second installment of our SafeSwap token (SSGT) deep dive series which examined the SSGT airdrops and bonuses.
To the benefit of our active and growing community, it is important to outline the many ways that SSGT can be used, earned, and purchased. And as liquidity providers are essential to every decentralized exchange, we have developed an abundance of income streams that will generously reward all SafeSwap liquidity providers to ensure substantial growth of our DEX.
Today, we’re excited to bring you the third installment of our four-part deep dive series that examines SSGT token utilities, NFT rewards, and governance.
SSGT has many inherent utilities that further several YFDAI goals, including enabling fully decentralized governance, serving as an additional token mechanism for LaunchPad, facilitating rewards to liquidity providers, and more.
Here is a full list of of SSGT utilities:
- DAO Governance: 2500 SSGT are required to participate in governance voting.
- SafeSwap Liquidity Rewards: Liquidity providers can use LP tokens to earn SSGT
- Staking Rewards: Staking SSGT rewards 72% a year SSGT (APY)
- Fee to stake is 1.5% (will be burnt)
- Fee to un-stake is 0.5% (will be burnt)
- Pre-sales Allocation Bonus: Staking or farming YF-DAI is the only way to qualify for LaunchPad pre-sales. Staking or farming an equivalent amount of SSGT (per the ratio below) for at least 60 days will increase your pre-sale allocation.
The pre-sale allocation bonus will be based on the following ratio:
1 YF-DAI = 1250 SSGT
For every YF-DAI and SSGT that you stake/farm, you will get a pre-sale allocation bonus using the following ratios:
Allocation Bonus Example: If you stake or farm 2 YF-DAI at least 60 days and stake or farm at least 1875 SSGT, then you will get an additional 15% allocation towards your LaunchPad pre-sale allocation.
Determination for LaunchPad Pre-sale Allocations:
1. YFDAI takes a snapshot that shows the amount of YF-DAI staked or farmed in every individual wallet
2. All staked/farmed YF-DAI is added up to get to a total number
3. Your amount of YF-DAI staked/farmed divided by the total amount staked/farmed determines your pre-sale allocation % based on total amount of pre-sale tokens sold
4. Then the time-weighted multiplier is figured into your pre-sale allocation (see graphic below)
5. Then any individual wallet caps (maximum allocation of pre-sale tokens per wallet) requested by the LaunchPad project are taken into account
NFT Rewards for Liquidity Providers
Liquidity providers to the SafeSwap exchange will receive multiple income streams and rewards to incentivize ample liquidity on SafeSwap, especially as we plan on significantly ramping up our project listing schedule.
To start, those that provide liquidity to SafeSwap will receive the share of the trading fees generated, as detailed in the YFDAI whitepaper. In addition, liquidity providers will also be able to farm the LP token in multiple pools to gain SSGT and further increase their rewards.
Liquidity Providers will also receive a NFT. The NFT will provide income streams from other YFDAI services for a period of 6 months as detailed below. After this 6-month period, the income streams structure as outlined will be subject to a governance vote.
Please note: All rewards are not taken from dedicated funds previously awarded to YF-DAI holders but will be taken from the section awarded to YFDAI development.
We envision YFDAI governance to become entirely decentralized and open, meaning that all stakeholders will be able to participate in the governance of the project through voting. This will be achieved through SSGT, voted in by our community last month, which grants voting power and is the heart of our governance system.
YFDAI thrives because of our community and technological innovations. As such, it is imperative that all members holding SSGT and YFDAI have the possibility to share their ideas with the greater community and that the community has the possibility to discuss and push these ideas to a governance vote.
Voting Eligibility: Every 1 YF-DAI that a token holder owns entitles them to claim 1250 SSGT. 2500 SSGT is required to vote, or the equivalent to 2 YF-DAI. All SSGT token holders will receive NFTs to vote so they can stake their tokens and still have access to our governance rooms and voting platforms. The 2500 of SSGT that is required to vote equals 25 voting NFTs, which will be used to cast actual votes.
25 NFTs will be held in a wallet in Collab.land. To be able to vote, NFTs must be held in the same wallet and are non-transferable.
After purchasing your SSGT in the presale, or claiming your SSGT from an airdrop, you can claim your voting NFTs to the active SSGT wallet. In order to claim your monthly SSGT, you will trade in the equivalent amount of NFTs (per the SSGT to voting NFTs described above), thus voting power will be maintained unless SSGT are sold.
- You have 2 YF-DAI that entitles you to claim 2500 SSGT (subject to a set distribution structure), and subsequently claim 25 NFTs.
- You will use your 25 NFTs or 2500 SSGT to access the voting platform and participate in the governance.
- A few days later, your initial 20% distribution of SSGT is made claimable (500 SSGT).
- Using the same active wallet, you claim the SSGT and automatically burn the equivalent amount of NFTs (500 SSGT/100 = 5 NFTs).
- This will maintain your voting power, 20 NFTs (the still unclaimed 2000 SSGT) and 500 SSGT in your wallet (which totals to be the equivalent of 2500 SSGT). You can still access the voting platform and vote.
SSGT will be deposited into a staking contract (paying 72% per annum) or the LP tokens deposited into the farming contract. Once deposited, users will receive the NFTs returned to the same wallet to be used for voting.
When a user wants to exit the staking pool or the liquidity the user will be required to burn the NFT to receive the LP tokens or staked tokens back.
This NFT is simply a receipt and has no income attached.
In our constant pursuit to deliver quality services and products with high integrity and transparency, we strive to continue leading by setting an example for the DeFi industry. Answering your questions and getting our community involved is paramount to our success, so please reach out with questions in our main Telegram community channel to make sure you understand the SSGT and how to make the most of the token, and our platform overall!
In the fourth and final installment of our SSGT deep dive, we will provide key takeaways and an extensive summary of our analysis over the course of the last week.
Governance — https://governance.yfdai.finance
Telegram Governance — https://t.me/joinchat/TjNNP9ipD9ObYLUU
Farming — https://farm.yfdai.finance
Staking — https://stake.yfdai.finance
Website — https://yfdai.finance
Telegram Community — https://t.me/yfdaifinance
Telegram Announcements — https://t.me/yfdai
Discord — https://discord.gg/S3GRXRC
Bitcointalk — https://bitcointalk.org/index.php?topic=5295276.new#new
Reddit — https://www.reddit.com/r/YFDAI