<aside> ☝🏼 This post is for early-stage crypto users who already know how to handle Metamask and to switch between EVM (blockchain) networks. Advanced DeFi users might enjoy gaining an insight into our novel approach to tokenomics.
To learn how to import your GoodDollar wallet to Metamask, please follow this tutorial.
G$ is a reserve-backed ERC20 token housed on two different networks (aka Blockchains): Ethereum and Fuse. Because it is not currently listed on any centralized exchange (CEX) (e.g. Binance, Kraken, etc.), G$ can only be purchased via the GoodDollar protocol or from a decentralized exchange (DEX) operating on G$’s home blockchains.
DEXs (e.g. Uniswap, SushiSwap and FuseSwap) rely on protocols called automated market makers (AMMs) to keep trade flowing. These are smart contracts that allow blockchain users to provide liquidity in exchange for rewards. The assets these users provide are aggregated to smart contracts called liquidity pools, which are available for users who want to buy or sell tokens on the DEX. The deeper a given liquidity pool, the greater the chance an investor can safely and quickly complete a trade at or close to a token’s market price.
At present, the two major DEXs with aggregated G$ liquidity from LPs are:
Larger DEXs with liquidity pools support trading in many cryptocurrency pairs, which are always distributed (in value) in a 50%/50% basis. As a result, when demand rises for a given token relative to its total liquidity, a trade may become more difficult or costly to execute. If you want to take a deeper dive into the mechanics of these AMM-equipped DEXs, this is a good article.
G$ has its own AMM: The GoodReserve Market, which is embedded in the GoodDollarV2 protocol. The GoodReserve Market 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$) and in inverse proportion to the circulating total supply.
The GoodReserve Market enables a liquidity-on-demand service, where the circulating G$ supply varies depending on market demand, which is in turn driven by a variety of factors, particularly market opportunities and the growing utility and usage of the token.
GoodDollar/Fuse Liquidity Rewards Program is Now Live
Since Ethereum is at present the largest and most secure blockchain ecosystem, we have chosen to house the policies that govern issuance (i.e. minting and burning) within that network. This is a choice designed to promote the security and value creation in the GoodDollar economy.
GoodSwap.xyz is the community-developed web app that GoodDollar community members can use to swap any token for G$s (and vice versa). Just connect your Metamask extension to Ethereum Mainnet network and you will be able to swap directly over this site.
After clicking on Swap, you’ll be asked to confirm the transaction via your Metamask. See below: