GTON Capital in Detail
Please note that this documentation is a work in progress and will be updated frequently.

A New Generation of Programmable Money

Intro

Based on the cutting edge achievements of Web 3.0 technology, GTON Capital is building an infrastructure to advance digital capital markets.
The decentralized digital finance ecosystem has undergone several revolutions in recent years:
  • 2009 - Bitcoin The origin of p2p monetary policy and the first digital reserve currency
  • 2014 - Ethereum The invention of programmable finance
  • 2016 - Maker DAO - DAI The establishment of an algorithmic stablecoin protocol and decentralized governance
  • 2019 - Rollups A solution to Ethereum's scalability problem
GTON Capital stands on the shoulders of these giants and introduces a new digital currency protocol architecture which is based on the following principles:
  • Scaling Ethereum with an L2 rollup, where user's assets are stored in revenue-generating vaults and can be redeemed at any time.
  • A Multi-Collateralized Stablecoin with a real use case as a native currency for L2.
  • Unlimited monetization of the treasury based on Bonding.
  • Reinvestment of the bonding revenue in ecosystem projects and protocol liquidity.
  • Royalty distribution of the protocol and infrastructure among the community.
  • Control of Protocol Capitalization by governance.

Protocol

GTON Capital protocol architecture consists of:
  • GTON Network - Community-governed Ethereum rollup protocol with a multi-collateral stablecoin as its native currency.
  • GTON Dollar - multi-collateralized stablecoin protocol with a real use case as a native currency for GTON Network rollup.
  • Treasury Protocols - GTON Bonds which are the primary mechanism to establish the inflow of funds into the treasury, and hence to stimulate the growth of the network. Also, Pathway as a protocol for CEX/DEX liquidity management, and staking of GCD and GTON tokens with a sustainable APR.
The three key components of the architecture are represented by smart contracts on the Ethereum network and a bridge system for ERC20 tokens and for the native rollup token GCD (GTON Dollar). The minting of the native stablecoin token occurs only in the GTON Network, and through the MNTR bridge, the stablecoin is made available on the Ethereum network as an ERC20 token.
The original blockchain of the GTON utility token is Ethereum, but the standard ERC20 bridge allows it to be transferred to the GTON Network. The protocol of the multi-collateral stablecoin GTON Dollar is deployed only in GTON Network. In order to mint GCD, it is necessary to bridge ERC20 tokens available as collateral to the GTON Network and lock them as CDP (collateralized debt position).
Different dApps can be deployed on the rollup, whose users will use GCD to pay transaction fees, the funds from which go to the sequencer and then to treasury and are further redistributed in the form of staking rewards for two types of stakers: GTON stakers (on the Ethereum network) and GCD stakers (on GTON Network).
Thus, positions in GTON and GCD allow the user to participate in passive value extraction from any transactional activity on the GTON Network.
Decentralized Oracle Networks (DONs) are deployed on the rollup to provide applications with necessary data (prices, events, balances etc).

Technology stack

Rollup Infrastructure based on Optimistic
Multi-collateral CDP Stablecoin based on Unit Protocol
Custom Oracles based on Chainlink DON standards
Crosschain Messaging based on LayerZero and Optimistic

Economy

GTON Protocol has a dual token model represented by governance and utility token GTON and collateralized stablecoin GCD:
Major protocol’s utility functions rely on GTON utility token and governance functionality. GTON Dollar stablecoin protocol uses GTON, ETH and other liquid assets as collateral with different collateralization ratio. Thus, GTON is not only a governance token of the GTON Dollar protocol (that is, a functional analogue of the DUCK token in the Unit protocol), but is also used as collateral in it. Globally, GTON Protocol revenue is distributed among the stakers of both tokens, in the proportion determined by governance decisions of GTON holders.
The emission of GTON is capped at 21 million tokens and is deflationary, similar to BTC. Despite the fact that there is an allocation for staking and bonding in the protocol, it is limited and allows for the emission to only be used initially, as an extra incentive for onboarding into the protocol. In the long term, all staking rewards are taken from the funds that users of rollup and applications generate on it.
There are two types of protocol monetization:
  • Treasury Monetization, which is represented by Bonding and Pathway.
  • Rollup Monetization for app activity and GTON Network infrastructure.

Use Cases

Let's take a look at the basic usecase for GTON Network, without going into detail about the variety of applications created on it by third party development teams. Consider two basic cases, the only difference being that Alice is free to use any allowed collateral.
I. Alice believes in the potential of the protocol and wants to use applications on the GTON Network. However, she only owns Ethereum and she does not want to sell it. Therefore, Alice bridges Ethereum into GTON Network and uses it as collateral to issue some GCD stablecoin. Since the stablecoin is the native token of the protocol, Alice can transfer any tokens right away and use a variety of dApps: exchanges, loan protocols, nft marketplace or farming services. When Alice does not require GCD to pay for transactions, she can it for stablecoin staking to generate profit redistributed from the other users of the GTON Network. After some time, Alice notices that her Ethereum has grown significantly in price. However, in order to close the debt position, Alice only needs the amount of GCD that she borrowed at the very beginning. As a result, Alice ends up in a "triple win" situation: she kept her Ethereum, generated value from applications, and also received profit from commissions of protocol users.
Suppose in this example that Alice did not own Ethereum but GTON. In that case, Alice can simply stake the token and get rewards from the activity on the GTON Network or bridge it into the chain and use it as collateral, just like in case I. As we can see, cases 1 and 2 complement each other, so Alice can pledge any tokens allowed by GTON Dollar governance from her portfolio as collateral, but at the same time effectively use GCD to profit from rollup activity.

Vision

As a foundation, GTON Capital creates capital-efficient technologies and products through synergizing the best elements of Web 3.0.
GTON's ultimate aim is to empower millions of users to invent and explore new experiences in decentralized digital capital markets. Business models, community structures, and collaborative creativity are being stitched together and redefined by GTON Capital to create a more sustainable, equitable, and efficient future for the global economy.
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Intro
Protocol
Technology stack
Economy
Use Cases
Vision