About Genie Protocol
Genie protocol is a defi protocol for buying sets or "funds" of tokens governed by Genie Dao and is the first protocol for buying sets or "funds" of native multichain tokens (BSC and Ethereum at launch).
The GNP token is the governance token of the Genie Dao and will be used to decide Genie Protocol evolutions.
The Genie Dao, through voting, will be able to launch through Genie Protocol "funds" or sets of ERC20 and BEP20 tokens that the user can buy with a single transaction.
The "funds" or sets composed of different tokens (10, 20 or more tokens) will be able to replicate the trend of the most capitalized tokens by category and therefore will be "funds" or index sets, (ex: top defi, top lending, top nft) or will be managed directly by Genie Dao or by particularly skilled users ("managed funds or sets") and in the future also by a specially trained AI.
User-managed funds will have a number of limitations to minimise the risk of adverse selection and moral hazard on the part of managers, such as limits on the exposure to certain tokens, which will become more stringent the smaller and less capitalised the token chosen by the manager.
Genie Dao will be able to decide, by vote, to remove or make more stringent the aforementioned limits in the choice of tokens by managers.
These "funds" or sets of ERC20 or BEP20 tokens will be composed by interfacing with different AMMs such as Uniswap, Pancakeswap, Sushiswap, etc., trying to find the best price in the market and weighting purchases according to the best conditions.
When a user invests using Genie Protocol using BNBs or ETHs, upon completion of the transaction he will be allocated a token representing his share of the fund which he can use to redeem his investment in a manner similar to tokens representing a share of a Liquidity Pool.
The token representing a share of a fund will be an ERC20 or BEP20 and as such can be freely transferred to a secondary market freely created by individuals.
When a user uses Genie Protocol to buy a "fund" or a set of tokens he will be charged an entry fee. Similarly, when disinvesting, the user will be charged a performance fee.
The entry and performance fees will be used, in addition to paying the cost of gas, to buy back tokens from the GNP/BUSD Liquidity Pool on Pancakeswap and to redistribute the bought tokens to hodlers through staking.
From the early stages of the Genie Protocol launch, there will be 4 different staking pools available to gradually distribute GNP Governance tokens to the community.
The four staking pools will have lock-in periods of 30, 90, 180 and 360 days, distributing more tokens for the same amount of time in the longer pools.
Specifically, considering a 30-day period for the four pools, for every 100 GNP allocated in the first 30-day pool, 200 GNP will be allocated in the 90-day pool, 400 GNP in the 180-day pool and 800 GNP in the 360-day pool.
In essence, over the same period of time, the pools will have these multipliers: x1 the 30-day pool, x2 the 90-day pool, x4 the 180-day pool and x8 the 360-day pool.
If Genie Dao wishes, it can proceed to burn all or part of the tokens bought through the commissions generated by Genie Protocol through the buy back, making GNP potentially deflationary.