What Is Gondola Finance (GDL)?
A Floor Index has 0 tokens to start and mints 1,000 tokens for every deposited asset. Deposited assets are fractionalized prior to deposit, therefore only a full kilo-asset will mint 1,000 index tokens. Users can also deposit a portion of their dragon, receiving a proportional share of index tokens.Index tokens may also be acquired by purchasing shares for SOL on the open market. Index tokens may be swapped for any individual asset fractions backing the index.
This is the only way to acquire the underlying shares of the specific asset. All assets are Gondola Finance via the Bridge split protocol, meaning the assets support buyout, fusing, and more (see fractionalization docs for more info). Someone who owns a kilo-asset can burn the 1,000 shares to claim the full NFT to their wallet. Additionally, fractionalized assets may be put up for auction at the vote of at least 50% of shares.
In the event of a buyout, shares may be redeemed for their pro-rata share of winning bid in SOL. Therefore, index tokens may be swapped for shares of a bought-out asset that still remains in the index and then redeemed for SOL on the asset’s page.
Gondola Finance Storage Key Points
|Coin Name||Gondola Finance|
|Circulating Supply||149,000,000.00 GDL|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
Consider the following scenario using Boryoku Dragonz as an example collection for a Floor Index. Alice deposits Boryoku Dragon #18 to the Boryoku Dragon Floor Index, receiving 1,000 DRAG. Bob deposits 49% of Boryoku Dragon #42 to the index, receiving 490 DRAG and 510 shares of Boryoku Dragon #42. Four more users deposit their kilo-dragons to the index (#1, #2, #3, #4). The Floor Index now has 5,490 outstanding DRAG.
Alice decides she wants to earn rewards on her DRAG and provides liquidity to the DRAG-SOL trading pool. She puts all of her DRAG in the pool along with some SOL. Other depositors hold onto their DRAG. Mary wants to own DRAG and buys 500 DRAG from the pool with SOL. As a 51% holder of Boryoku Dragon #42, Bob decides he wants to sell the asset so he enables a 24 hour auction on the dragon. The winning bid is for 1000 SOL. Bob is now able to claim 510 SOL from the vault.
To add to the vault, a user must Gondola Finance their NFT. This can be done at the point of deposit or separately. After depositing some amount of the NFT, the user will be minted shares of the index. The amount of fractions minted will depend on the amount of fractions deposited and and the total supply of the fractionalized NFT.
Gondola Finance Index tokens represent the basket of fractions of assets from a collection and have different mechanics to facilitate 1000 index tokens trading at approximately the floor value for the collections. Index tokens can offer traders liquid and smaller-dollar exposure to the floor value of a collection. If 1,000 index tokens are trading below the floor value of the collection and a whole asset is sold from a Bridge split vault, a trader can swap index tokens for the stale shares and redeem a pro-rata share of the winning bid in SOL, netting a profit.
The price of the index token is determined entirely by the market and supply and demand and the token may trade well above and well above 1/1000th of the floor value of a collection. However, the mechanics described earlier are designed to support the index token tracking a value relative to the floor value of the collection. This is because of the following arbitrage mechanisms.
Gondola Finance If 1,000 index tokens are trading below the floor value of the collection, a trader can swap 1,000 index tokens for a kilo-asset, fuse to a full asset, and sell the asset on a marketplace, netting a profit. Therefore, if an index token is trading below 1/1,000th of the floor value of the collection asset, there are profitable reasons to buy more index tokens, driving up the price of the index tokens.