Place/Date: - July 31st, 2020 at 7:59 pm UTC · 4 min read
Contact: Waykichain, Source: Waykichain
WaykiChain has a leading layout in the decentralized finance field as a professional DeFi public chain. Since the launch of the stablecoin WUSD project in September 2019, WaykiChain’s DeFi ecosystem has appeared globally. The first three-token economic model based on the bottom of the public chain is the foundation of the WaykiChain DeFi ecosystem development. WaykiChain public chain has mainnet coinWICC, stablecoin WUSD and governance coin WGRT, three different types of tokens promote and balance each other, providing strong protection for WaykiChain decentralized finance, and also bring unlimited development possibilities to WaykiChain DeFi ecosystem .
This time we will lead you to understand the governance coin that plays an important role in the three-token economic model-WGRT.
WGRT is the governance and equity token of WaykiChain decentralized collateral lending platform. WGRT is the abbreviation of governance coin and the four letters are both the abbreviation of WaykiChain Great and respectively represent WaykiChain, Governance, Right, Treasure. Governance coin WGRT plays an important role in WaykiChain stablecoin system. When the stablecoin system is running well, the interest generated by collaterizing WUSD and the penalty generated by the liquidation of the CDP will be used to repurchase WGRT and destroy it. When an extreme black swan event occurs, such as a collateralized asset falls sharply and quickly, causing some CDPs to become insolvent in the future before liquidation, the system will use the risk reserve pool to fill the insolvency part and then close the CDP, and issue additional WGRT to buy WUSD on the market to repay the risk reserve pool (the additional amount depends on the insolvency gap). Therefore, governance coin WGRT as a modulator is crucial in the stablecoin system.
From the point of view of system operation, interest will be generated for each asset collaterized, and the penalty generated by each liquidation of CDP will result in the destruction of WGRT, and the additional issuance of WGRT only occurs when extreme cases occur. low. Therefore, from the perspective of long-term operation of the system, WGRT will continue to deflate.
In WaykiChain’s stablecoin system, any user holding WGRT in the future will become the governor, and can exercise the authority to manage and maintain the stablecoin system. Governor has both equity and obligation. Equity is due to the destruction mechanism of WGRT in the system, resulting in a decrease in the number of WGRT and an increase in the value, thereby bringing benefits to the governor. The obligation is that when the system is insolvent in extreme cases, the system will issue additional WGRT and exchange it for WUSD to close the position, assisting the system to quickly dispose of the bad debt position.
The governance of WaykiChain’s entire stablecoin system is jointly participated by the WGRT holders (ie the governors). Besides the rights and interests listed above, the governors also enjoys full authority in the operation of the system.
Recently, WGRT is listed on another leading exchange MXC on July 29, 2020, which can be regarded as a sign of the prosperous ecosystem. The new listing of WGRT further proved that the advance of WaykiChian’s cutting-edge technology, innovative products, and the world’s leading team. Getting listed on another premier exchange, not only can enhance WaykiChain’s visibility and credibility to its global community, but also allowing token holders to realize the value of their investment. WGRT helps maintain the stability of the system as well as promote the ecosystem and has an independent market value. The development of WGRT is closely related to WaykiChain’s entire DeFi system. As more WUSD is issued, the more interest and liquidation penalties will be, and the more WGRT will be destroyed, thus WGRT value will be increased.
All the recent moves WaykiChain made, such as Public Chain V3.0 upgrade and Wayki-X public testing, all strived to provide continuous enhancement of DeFi infrastructure and bring more liquidity to WICC. By driving the issuance of WUSD and increase the price of WGRT, which in turn facilitates the further promotion of WaykiChain DeFi ecosystem. WGRT be listed continuously on Exchanges can help increase liquidity, which means that WaykiChain team has a longer-term and more ambitious plan for WaykiChain DeFi, and is gradually implementing it steadily. More details about WGRT, and how to purchase it can be found in OKEx official website.