✅Real Yield

The protocol will only need to compound half of the ETH rewards of GLP from single stake pools to satisfy the APR. The other half will be collected as performance fees/protocol revenue and distributed to $GEM stakers in WETH. $GEM also earns their WETH rewards from their reserve and fees collected through protocol owned liquidity. All will be converted to WETH and distributed.

At an initial mint price of $0,5 ; 200,000 circulating supply, and a total single-stake TVL of 1m$, let’s calculate how much $GEM earns in real yield.

At 20% APR from GLP, we compound 10% for the vault, the other half is collected. As a result, 100k$ a year will be collected for $GEM stakers. 75k worth of reserve in GLP earns another 15k a year. Let's assume protocol owned liquidity collects 20-30k a year (a conservative 35% apr on the lp). The team plans to take 10% of performance fees

The total revenue is 100 + 30 + 15 = 145k a year => $GEM earns about 130k after performance fees. With 100k tokens all staked at 1$, $GEM earns 130% apr. As some people will not stake their $GEM to provide liquidity or just hold, the theoretical number is higher.

As the market reacts to such a high real yield, we expect the APR to be lower as $GEM price increases and demand increases. Hence, we advise investors to participate in minting to get the best prices for the yields.

*Note: Staked $GEM can be only withdrawn at the beginning of each month for 48 hours.