🔵Utility
Governance
The primary utility of the GASBET token lies in its governance capabilities. Token holders have direct influence over the protocol’s direction, including:
Protocol Upgrades: Propose and vote on changes or improvements.
Parameter Changes: Adjust key operational parameters, such as fees or new derivatives, and decide on their distribution.
Conflict Resolution: Resolve disputes or contentious issues within the community, ensuring a democratic outcome.
Protocol Fees
A core element of GASBET Protocol's tokenomics is the diverse range of fees designed to foster a sustainable and growth-oriented ecosystem. These fees are essential for value capture and redistribution, ensuring the protocol remains strong and rewarding for its stakeholders.
Redemption Fees: A fee is charged when users redeem Basefee for wstETH at a discount. This redemption fee is distributed between the $GASBET DAO and the Stability pool, creating an incentive mechanism that aligns user interests with the protocol's governance.
Liquidation Fees: During liquidations, liquidators are rewarded with a portion of the liquidation fees. This ensures protocol stability by encouraging active monitoring and timely actions to maintain system health.
Mint Fee: The minting fee goes directly to the GASBET DAO treasury, providing a sustainable revenue stream that funds future developments, partnerships, and ecosystem growth.
Trading Fees: Trades within AMMs generate trading fees, with liquidity providers receiving a share. This incentivizes more liquidity to the protocol, ensuring smoother trading experiences.
These fee structures serve two main purposes: sustaining the operational aspects of the protocol and enhancing the core value of the GASBET token. By linking token utility with protocol fees, GASBET Protocol creates a cyclical growth model where increased usage and adoption directly benefit token holders.
BaseFee Token Explained
In the GASBET Protocol, the BaseFee token is a derivative minted using the Collateralized Debt Position (CDP) model. Its value is based on the on-chain logarithmic moving average of gas prices, updated every 50 blocks via our trusted oracle. This design ensures both price stability for the BaseFee token and protection against sudden gas price spikes or potential external manipulation.
Once minted, BaseFee holders can utilize it in several ways:
Speculate on gas price movements
Hedge against gas price fluctuations during volatile periods
Stake it as a Stability Pool depositor to earn rewards
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