Genshiro

Genshiro is a cross-chain protocol that helps users seamlessly earn yield, borrow, and trade on margin. Using asset portfolios instead of single collateral vaults.

Just like its older brother, EQ token of Equilibrium, Kusama-based GENS token will function as a multipurpose token within the Genshiro system. In particular, GENS plays a role of internal currency of Genshiro in several system components:

- GENS token is a governance token that allows its holders to express their opinions about the system state and enforce governance decisions via referendums.

- Validators/Collators receive rewards in GENS token for running blockchain nodes and performing parallel (e.g off-chain) work.

- Users pay transaction fees in GENS tokens.

- Borrowers pay interest fees in GENS tokens

- System distributes rewards in GENS tokens for liquidity that users bring.

- GENS can be used as bailout and collateral liquidity in Kusama-based liquidity pools once tokens obtain value

Total supply of GENS is 1.2 billion tokens. We intend to distribute GENS to existing EQ token holders pro rata their EQ stakes via lockdrop. With currently 45% of all EQ token supply distributed (including vestings, PLO phase 1 and strategic investors), the corresponding GENS allocation in KUSAMA will look approximately the following way:

Every user (account_id) who has a current allocation and vesting schedule in EQ tokens on polkadot will receive ten times more GENS tokens on Kusama.

Genshiro’s goal is to allocate GENS tokens to active users of the protocol, who bring value to the community and participate in the protocol for the long term. Thus we want to distinguish long-term protocol supporters from speculators. Here’s our solution: users who locked their EQ tokens inside a special-purpose Vault, which holds funds locked for 3 month, will be able to claim GENS tokens in Kusama.

For users who have ongoing vesting on their EQ allocations, respective allocations of GENS tokens will depend on an actual portion of freely circulating EQ tokens users will lock. If users lock a fraction of their free EQ balance into the Vault, they will get GENS tokens on diminishing fraction of their locked (unvested) EQ tokens. This is best illustrated on the following chart

So, for example, if user has 1000 EQ tokens in total, 500 of which are free and 500 of which are still being vested, if he decides to lock 250 EQ tokens out of 500 available to him, he will receive [250 + 0.25 * 500] * 10 = 3750 GENS tokens.

Given token allocations described above and the mechanics related to rewarding users via lockdrop and additional staking bonuses, as well as, our expectations that we will distribute Liquidity farming allocation approximately evenly throughout a course of 2 years, we may gauge the expected number of GENS tokens in circulation over a period of 2 years (8 quarters):

20% of 1.2B GENS tokens goes towards parachain auctions. This is 240M tokens. Maximum parachain slot duration in Kusama is 48 weeks long (8 periods, 6 weeks each). Genshiro won a slot for the entire 8 periods and will reward users accordingly.

Distribution mechanics:

10% of tokens will be distributed immediately upon a successful crowdloan campaign, the rest of the GENS will be vested linearly over the course of slot lease duration (48 weeks).