The Genius Yield platform is a decentralized application (DApp) ecosystem where users can interact with multiple applications. The Genius Yield platform will contain an AI-powered yield optimizer (Smart Liquidity Vault) and an order-book decentralized exchange (DEX), that allows liquidity providers to place concentrated liquidity positions to maximize capital efficiency. The Genius Yield’s DEX will be the first DEX to be paired with a yield optimizer protocol, which maximizes return and minimizes loss based on the preferences of liquidity providers.
DApps continue to proliferate in the Cardano ecosystem. Over time, users will have to be more strategic about where they allocate their limited funds among a growing list of dApps. Let’s talk about the value you receive from staking $GENS, the native token of the Genius Yield platform:
- 20% of the trading fees from the Genius Yield’s DEX will be redistributed to participants of the $GENS Staking Program
- 20% of the Genius Yield’s yield optimizer (Smart Liquidity Vault) fees will be redistributed to $GENS Staking Program participants.
- Governance rights - participants gain voting power in the future development of the Genius Yield platform.
- Genius Pay crypto wallet - additional perks
Genius Yield is building the first concentrated liquidity, order-book DEX combined with a yield optimizer. $GENS is the fungible native token of the Genius Yield platform. $GENS holders are able to stake their $GENS tokens in the Genius Yield Staking dApp. Let’s detail the benefits you’ll receive by participating in the $GENS Staking Program below:
Participants in the $GENS Staking Program will have three sources of staking rewards: the Genius Yield’s DEX fees, the management fees of the Smart Liquidity Vaults, and the performance fees of the Smart Liquidity Vaults.
1. 20% of Genius Yield’s DEX trading fees — Outside of the standard transaction fee the Cardano network charges to submit an order, there are two fees charged when a transaction is executed on our DEX:
Execution Fee = % of Total Order Value = DEX Fee + LP Fee
- DEX Fee — Trade fees that go to the Genius Yield company. 20% of these fees are returned to participants in the $GENS Staking Program.
- LP Fee — Fees to compensate the liquidity provider (LP) for providing their capital.
2. 20% of Smart Liquidity Vault Fees — There will be multiple AI-power algorithmic trading strategies that will actively manage LPs’ funds to achieve the highest yield possible. They charge two fees:
Vault Fee = Management Fee + Performance Fee
- Management Fee — Is a standard fee charged as a percentage of the TVL (Total Value Locked), which is the total market value of cryptocurrencies deposited into a smart contract. The management fee covers expenses involved with managing the portfolio such as operations and administrative costs. $GENS stakers would receive 20% of these management fees.
- Performance Fee — A fee charged as a percentage of profits made by a Smart Liquidity Vault strategy. In other industries, the performance fee percentage is much higher than the management fee. In addition, the performance fee is only charged on capital gains, not losses. The performance fee incentivizes the creators of Smart Liquidity Vaults to work hard so that their strategies can get high returns since the majority of their compensation should come from this fee, instead of the management fee. $GENS stakers would receive 20% of the performance fees generated.
Note: The exact fee breakdown is being researched. This information will be made public once finalized.
3. Governance — $GENS holders can see proposals and vote. Voting requires holding of $GENS, stored in a wallet or staked in the Genius Yield Staking dApp. Voting sway and power are derived from the $GENS holdings of the participant. Voting power is based directly on the amount of $GENS each voter holds. The reasoning behind this is that those holding more $GENS are more invested in the project. Therefore, they have a more significant incentive to succeed and prosper. There is no need to remove the stake to vote.
These governance rights will culminate into the creation of a DAO, or decentralized autonomous organization, for the Genius Yield platform. A DAO is an entity with no central leadership. DAOs are usually made up of thousands of holders of the token community who will collectively make decisions for the protocol. Funds in the DAO Treasury will eventually be controlled by $GENS holders in the $GENS Staking Program.
4. Genius Pay — Genius Pay is a cryptocurrency wallet that will allow crypto deposits and fiat deposits. Genius Pay will connect decentralized finance and centralized finance, providing a quick crypto on-ramp by letting users directly deposit multiple fiat currencies. Participants in the $GENS Staking Program will also get exclusive perks.
CONCLUSION
The $GENS Staking Program has multiple benefits for a $GENS holder. A passive 20% reward redistribution, voting rights over the protocol, and liquidity mining incentives. Interest for the $GENS token has been high, as almost 15,000 different unique wallets participated in the Genius Yield ISPO and 40% of the circulating supply was staked in the Genius Yield’s Staking dApp after the TGE.