$GRAIN is coming to harvest
Granary Finance is finally launching $GRAIN, a decentralized governance token designed to facilitate decentralized management of the Granary Protocol. $GRAIN will be introduced through a fair-launch LGE (Liquidity Generation Event), the process is illustrated below.
To generate an organic community response for the LGE, Granary Finance has granted special discounts to various NFT and DeFi communities across the industry. By doing this, Granary hopes to cement its vision as a lending platform for the people, taking NFTs and governing power as proof of the user’s participation in our community’s vision for blockchain ecosystems.
TL;DR: Granary Finance is offering users a % discount across all purchased shares if they connect their wallet and have an associated NFT
What is $GRAIN?
$GRAIN is an ERC-20 token that will exist on multiple blockchain networks for the purpose of governing the Granary Protocol.
What is an LGE?
Liquidity Generation Events are a tool to capitalize new blockchain-based projects. They primarily serve to create liquidity for the new token by creating a liquidity pool of assets that can be used for trading. LGEs usually involve a fixed duration during which investors can contribute assets to the liquidity pool, and the new token is distributed proportionally based on the amount of assets contributed.
Quick Facts about the LGE
- The $GRAIN LGE will last for approximately two weeks, giving users ample time to participate.
- Users will be able to deposit/choose from a wide range of assets, however users who use assets other than USDC will experience slippage as their asset is swapped to USDC which will be displayed to them before they participate.
- Users can choose a vesting period ranging from 1 quarter to 20 quarters when participating. Longer vesting periods will receive a larger discount. Users who choose to vest will receive their $GRAIN on a linear basis, evenly distributed every quarter across their total vesting length. We will also offer a no-vesting option.
- An optional NFT discount is available to users. Users can enable an NFT discount and select an NFT from a gallery to receive a discount on their purchase. NFT discounts currently range from 2 to 7%.
- If a user makes multiple purchases on the same chain, their latest vesting period will be applied to their vest, and they will be quoted a new estimated $GRAIN. Users will not have to re-select their NFT unless they want to replace the current NFT discount.
- After the LGE concludes, there will be a grace period of a few hours, during which $GRAIN will be proportionally minted to each chain. Users can see their vests and claim them if they selected a no-vest option.
- The start date, duration of the LGE, vesting discount, and NFT discounts are subject to change.
FAQs about $GRAIN & Granary Finance
Q: What is Granary Finance?
A: A way for users to lend and borrow assets in a decentralized and trustless system. You can learn everything about Granary here: https://docs.granary.finance/
Q: What networks will the LGE be available?
A: The LGE will take place on Ethereum, Fantom, Optimism, Metis, Polygon, Binance, and Arbitrum.
Q: How are the NFT discounts determined?
A: Through a combination of
- Project Valuation
- Holder Distribution
- Release Date
- Social or Community Activity & Reach
- Willingness to participate in the $GRAIN LGE
Q: What is a vesting schedule or period?
A: This is the distribution and length of your vest, so if you had a 20-quarter vest after 10 quarters you would have 50% of the total allocation purchased from the $GRAIN LGE shares. This is used to determine the distribution relative to the discount and offers participants the comfort to choose their own level of risk & reward.
Q: How will tokens be distributed across chains?
A: Tokens will be minted on each chain based on that network’s share of the total LGE contributions.
Chain Allocation = LGE Allocation * (Weighted Network Contributions / Weighted Total Contributions)
Q: What is the team allocation and vesting schedule?
A: 11% of tokens are vested among the Granary core contributors for 4 years, with a 4% reserve for hiring new talent, which will also be subject to 4-year vesting.
Q: How are tokens distributed?
A: Tokens will be distributed through incentives and airdrops to facilitate protocol growth.
Q: How will token buybacks work?
A: Revenues earned by the protocol will buy $GRAIN from the $wGRAIN pool to be distributed to ecosystem participants - lenders, borrowers, stakers, and grant recipients.
Q: How will token staking work?
A: Staking in Granary is done with an 80/20 Balancer Pool Token (BPT), featuring 80% $GRAIN and 20% local gas token.
Q: How are token stakers rewarded?
A: Stakers receive a 2% fee on every buyback.
Q: How will tokens be emitted after launch?
- While Granary V2 is under development, Granary Finance will continue to focus on key markets and co-incentivization with our partners, with tokens being sustainably distributed proportional to fees earned by the pool.
- When Granary V2 is launched, Granary Finance will scale up incentivization strategies an order of magnitude over the following months, continuing to focus on the most profitable pools, with a portion being diverted to stakers.
Q: How will $GRAIN governance work?
A: $GRAIN aims to release governance 9 months following launch. Governance will be composed of two main entities.
- Protocol governance will be managed by a Super Admin contract, which allows proposals to be enforced at the smart contract level, including parameter updates and other system-level upgrades. $GRAIN stakers can propose, approve, or deny changes alongside the executive multisig.
- Foundation governance will be managed by Snapshot, and allows $GRAIN users to dictate the direction of development, prioritization of features, and high level work items of the Granary Finance. This will be rolled out in 3 parts as Granary Finance pursues adequate decentralization.
Q: How do users access the token?
A: At the time of the fair launch, users can secure access to $GRAIN by contributing assets to the LGE at grain.sale. Afterward, $GRAIN will be made available on decentralized exchanges.
Q: How will the LGE work?
- An LGE is a fair launch mechanism designed to facilitate safe discovery of $GRAIN’s fair value. 12.5% of the $GRAIN supply will be distributed based on user contributions in a % proportional to the size of their contribution and vesting terms.
- A separate LGE contract will be deployed on each network and support different popular tokens for contributions. 70% of the $GRAIN incentive supply will be allocated to these networks proportional to the amount contributed by that network’s users. Greater contributions = more incentives for your network.
Q: When can users expect the token to become available?
A: Expect the $GRAIN LGE to begin in mid-march at grain.sale. All announcements related to the $GRAIN LGE will come directly from Granary’s Discord or Twitter.
Q: How can I receive extra $GRAIN tokens during the LGE?
A: Projects who choose to collaborate with the $GRAIN foundation for the LGE may receive between 2-7% bonus $GRAIN for their contributions. These bonuses will be granted to project NFT holders, or via an NFT minted at grain.sale.
Q: Can I trade my NFT after I enter the LGE?
A: You are welcome to trade your NFT after the LGE - there are no limits to the amount you can contribute with the NFT Bonus.
Q: What assets can I use to participate in the $GRAIN LGE?
A: We aim to support the 3-5 most popular assets and native gas token on each network.
Q: How will the airdrop work?
A: Following the $GRAIN LGE, airdrop allocations will be distributed based on snapshots taken over the past year (03/20/2022 - 10/30/2022), weighted based on age, length, and size of contribution.
Q: How will token liquidity be managed after the launch?
A: $GRAIN will be placed into liquidity pools on Balancer, Beethoven-X, Uniswap V3, and other decentralized exchanges proportional to the amount of $GRAIN allocated to the network. Pairings will be chosen from the most popular assets on the chain, as well as treasury assets collected from the LGE.
Q: Who are Granary Finance’s collaborators?
A: The Grain Foundation collaborates with protocols and contributors all over the world, most notably: Lido DAO, Metis Foundation and Stader Labs.
Q: How is the $GRAIN token contract secured?
A: $GRAIN is forked from the battle-tested upgradeable $OATH smart contract which is modified from OpenZeppelin’s heavily audited code.
Q: How is Granary Finance secured?
A: Granary Finance has been audited by Certik as well as private auditors and white-hat hackers across the industry.
Q: If I already bought into the LGE, will I be able to buy again?
A: Yes. If you already have bought in once, you can buy again. The latest vesting option will be applied.
Q: If I already bought into the LGE, can I add an NFT bonus after the fact?
A: Yes. You can add an NFT bonus without buying a second time. We encourage you to check out our collaborating NFT collections!
Q: What if my DeFi community doesn’t have an NFT?
A: We are collaborating with communities on every network to allow active ecosystem participants to mint their own discount NFT at grain.sale. Participants will be whitelisted to claim the NFT on the network of their choice.