Goose Finance Project Review: 2nd Generation Yield Farming

Goose Finance introduces a unique spin on traditional AMM’s using its layered farming system alongside two unique deflationary mechanisms.

Introduction

Goose Finance is a decentralized exchange that leverages automated market-making technology and yield farming mechanics to bootstrap users and liquidity. The team’s mission is to capitalize on traditional AMM protocols by incorporating a 2nd generation yield farming mechanism that capitalizes on sustainable yield farming alongside their novel deflationary tokenomics model.

What is a DEX AMM? 

These types of DEX’s first appeared on the Ethereum network, such as Uniswap and Sushiswap. In Goose Finance’s case, it is specifically a PancakeSwap fork on the Binance Smart Chain (BSC), which attributes most of its features to SushiSwap on the ETH network.

This exchange model creates seamless token swaps, which are both decentralized and permissionless. This is achieved through using AMM technology coupled with the fundamental aspects of blockchains. As for Goose, we will get into their novel solution and vision to create sustainable yield farming

For those who wish for in-depth articles on Automated Market Making and Decentralized exchanges, refer to the following articles:

Cryptonomics: Automated Market Makers

Cryptonomics: Decentralized Exchanges Explained

Key Features of Goose Finance

–Permissionless and Decentralized Token Swaps

–Low Fee’s and Quick Transactions

–Novel Deflationary Mechanisms

–Sustainable Yield Farming

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Goose Finance

Goose Finance has witnessed the plethora of AMM’s surfacing on the Binance Smart Chain (BSC), and they plan to introduce a novel protocol that capitalizes on their weaknesses. To do so, they have incorporated a plethora of unique solutions on top of traditional AMM models. First, the team has incorporated a burn mechanism on all liquidity deposits; this is used to fund the Omega Large Lottery Pool, a lottery system similar to that of PCS. The team is also developing their layer two farming system, which is set to launch in a couple of weeks. The team boasts that this will be an un-ruggable and sustainable yield farming system. 

Since launch the protocol has received massive adoption with over 90,000,000 in total value locked on the protocol (TVL). This is immense as the project only launched nine days ago and this project is quickly becoming one of the larger AMM’s. TVL is a nice statistic as it helps give a view of how many participants are willing to deposit liquidity in a platform, the idea is the more liquidity the more established a project becomes.

Tokenomics

Currently, the block reward is set at 1 EGG/block or 28,800 EGG that is distributed daily; of these, 9.09% are allocated for future partnerships. To combat the inflationary tokenomics models, the Goose Finance team aims to innovate unique burn mechanisms outside the scope of what PCS has done. To do so, the team has incorporated a few unique deflationary instruments, the first being a 4% burn on all LP token deposits. From this fee, 3% of it is used to purchase Golden Egg Token (EGG) which is distributed to the Omega Large Lottery Pool; the remaining 1% will be sent to a fund for further marketing and protocol collaboration. Every lottery will consist of a token burn, which removes 20% of the lottery pot (burning fee + lottery ticket cost) from circulation permanently. This is only Goose Finance’s preliminary burn mechanism as they are innovating more features to further reduce the circulating supply.

For those who wish to learn more about deflationary mechanics check out the following article:

Cryptonomics: Deflationary Tokens

Layered Farming

This layered farming system, coined the “Incubator,” aims to offer a yield farming solution that is both perpetual and theoretically rug-proof. The team achieves this through incorporating layered farming, which doubles as a sustainable yield farming system and a deflationary mechanic.

The team achieves this by releasing a new “Layer x Goose” LP token every fourteen days. To receive these LP tokens, users will stake EGG on a first-come, first-serve basis, and the staked EGG is then burned. In return for burning, egg users will earn these “layered” LP tokens, allowing users to earn high yields using “Layer x Goose” LP tokens. 

In attempts to maintain multiple layers of sustainable yield farming, the team has allowed layers to remain on as long as profits can be extracted. On top of this, the first-come, first-serve basis allows for more stable yields as the LP tokens are capped after initial staking. 

RoadMap

Going beyond the incubator, the Goose Finance team has numerous other developments in the pipeline. These innovations don’t have a set date, but the team is currently developing these aspects of the protocol. The team has listed the following developments on their official roadmap:

Burning Mechanism: Layered farming – THE INCUBATOR

Audits (Rumored CertiK)

More Token Pools

Goose Vaults

Goose IDO

Concluding Thoughts

Goose Finance introduces a unique spin on traditional AMM’s using its layered farming system alongside two unique deflationary mechanisms. The ecosystem’s goal is to provide sustainable and safe farming for those who wish to earn high-risk tokens while also catering to users who want less volatility by holding the platform’s native token EGGs. It is important to note that while this token aims to provide sustainable yield, the incubator mechanics are yet to be market-tested, and the risks remain very high.

Overall, the Goose Finance team has identified an issue in AMM yield farming protocols and aims to innovate on this. As the team develops and releases features such as the incubator and other deflationary mechanisms, I will be keeping a close eye on this DEX protocol.

Source : bsc.news