Liquidity
How can you become a GoodDollar liquidity provider?
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As of December 21, 2023, the information in GoodDocs may not reflect the most current updates. The team is diligently working to review and revise the documentation to ensure accuracy. Please check back at a later date for the most up-to-date information.
Providing liquidity to the GoodDollar ecosystem and participating as a G$ liquidity provider is a great way to support the GoodDollar ecosystem and the mission to let money flow to where it is needed most. G$ token is a reserve-backed ERC20 token deployed on three different networks: Ethereum, Celo and Fuse. It is designed to maintain a level of price stability that is "stable enough” to encourage circulation and usage of G$ tokens for payments. It is fully liquid, providing seamless exchangeability through the GoodDollar Reserve, which effectively serves as the primary market maker on the Ethereum Network. Most importantly, new G$ are only issued as new funds are added to the GoodDollar Reserve according to a price curve modified by the Bancor formula, ensuring a transparent and predictable view into the protocol’s token supply. GoodDollar liquidity on side-chains (Celo and Fuse) is facilitated through decentralized exchanges (DEXes), which also facilitate G$ liquidity to other tokens. This enables users to cash out into various forms, including other currencies, fiat, mobile money, or airtime as needed. Liquidity providers play a critical role in the GoodDollar ecosystem through supporting G$ liquidity on side-chains, which is where the members seek to cash-in, cash-out, or conduct all other “real money” functions. Contributing to G$ liquidity not only results in earning fees for each pool trade but also plays a vital role in fortifying the GoodDollar economy and network for hundreds of thousands of individuals worldwide. This support reaches UBI claimers, community members, and ambassadors who utilize their G$ to convert into various crypto assets and currencies, promoting the development of a more robust ecosystem.
Liquidity on Ethereum
The GoodDollar Reserve serves as both the liquidity pool and Automatic Market Maker (AMM) for G$, facilitating buying and selling. The GoodDollar Reserve is a smart contract overlaid on the Ethereum network that is governed by a modified version of the Bancor Formula. The formula stipulates that the price of the G$ token moves in proportion to the aggregated value in the reserve (i.e. the pool of liquidity that supports G$) and in inverse proportion to the circulating total supply. Its rate of leverage is managed according to the reserve ratio, the current Reserve Ratio is 55.39% and declining 15% per year. The GoodDollar Reserve functions as the principal market maker. For tracking the G$ price from the GoodDollar Reserve, navigate to the GoodDollar Dashboard.
To interact with the GoodDollar Reserve contracts for buying and selling G$, check out this guide.
To interact with the GoodDollar Reserve UI, visit https://gooddapp.org/#/swap (ensure you are on the Ethereum network). When using GoodDapp on the Ethereum blockchain, you are interfacing with the core protocol contracts and accessing the primary G$ market.
Note: New liquidity pools on DExes on Ethereum can be opened permissionlessly!
Provide liquidity on Celo
DEXes and Pools
Note: New liquidity pools on DExes on Celo can be opened permissionlessly!
Other ways to get G$ on Celo
Purchase G$ from the GoodDollar Reserve on Ethereum and bridge to Celo via smart contracts. Check the information and guides here.
Purchase G$ on Celo from any chain and supported token via Squid.
Purchase G$ on Celo with your credit card (coming soon!).
Provide Liquidity on Fuse
Note: New liquidity pools on DExes on Fuse can be opened permissionlessly!
Other ways to get G$ on Fuse
Purchase G$ from the GoodDollar Reserve on Ethereum and bridge via smart contracts. Check the information and guides here.
Purchase G$ from the GoodDollar Reserve on Ethereum and bridge via Fuse Bridge.
Disclaimer: This is not financial advice. Please Do Your Own Research (DYOR) before making a decision.
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