Getting Started with Empty Set Gold (Efficiently)
During the bootstrap phase, Empty Set Gold (ESG) will inflate supply by roughly 10% per epoch (6 hour period). This initial guaranteed sequence of expansions helps to achieve gradual supply extension up to a target market cap, while also allowing time for motivated participants to gain access and share in the protocol.
It can be somewhat difficult to judge the best way to become involved, but here are the two main methods likely to benefit early joiners to the project.
- Bond to the DAO and receive expansion rewards of 7.75% (compounding), per epoch, and in future take part in protocol governance at the expense of capital agility. An exit lockup of 20 epochs applies in this method when extracting rewards.
- Provide liquidity in the sXAU/ESG pair, and receive a share of the liquidity pool rewards (22.5% of each expansion, or 2.25% per epoch) in proportion to your share of the pool. An exit lockup of 8 epochs applies in this method.
A Note on sXAU Acquisition
As ESG is targeting the price of gold, we have decided to use Synthetix’s sXAU product, as it provides deep liquidity, and is also backed by a robust network of Chainlink Oracles.
We highly suggest that users looking to earn ESG by providing Liquidity, acquire their sXAU using kweta.io’s slick and easy to use interface, so as not to suffer the high slippage found on other markets such as Uniswap (at the time of writing).
Buying sXAU on Kwenta is as simple as:
- Purchase sUSD on Uniswap
- Purchase sXAU on kwenta.io using sUSD
- Wait 6 minutes for the free reclamation period to pass: https://sips.synthetix.io/SCCP/sccp-68
… Now that you have your ESG, or ESG/sXAU pair, you may choose one, or both of the following ways to participate in the growth of ESG.
1. Bonding to the DAO
Steps:
- Purchase ESG from Uniswap, or compete for calls to advance every 6 hours to receive a 0.1ESG reward (highly contested). It should be noted that if buying from Uniswap, the price may be significantly above peg, and users should consider their point of entry carefully.
2. Proceed to the DAO dashboard and Approve your ESG for Staging
3. Stage and Bond your ESG to begin receiving rewards at the boundary between each epoch.
2. Providing Liquidity, and Bonding LP Tokens
The next method of participation is more complex from a management point of view to achieve maximum ESG, but provides much greater capital agility thanks to its much lower lockup time. While liquidity providers may not have a say in voting matters, their participation is still very much critical to the success of ESG as a product.
- Purchase an amount of ESG as outlined in Step 1 of ‘Bonding to the DAO’, and also acquire a suitable amount of sXAU on kwenta.io.
- Proceed to the Liquidity Provisioning interface for the ESG/sXAU pool, and provide liquidity by supplying a pair of sXAU and ESG at the current market rate. In exchange, you will receive UNIv2 tokens, which can now be used to Bond and receive a share of ESG inflation.
3. Approve your UNIv2 tokens on the LP Rewards dashboard.
4. Stage and Bond your UNIv2 tokens to begin receiving rewards
Extracting rewards
In the case of the DAO, rewards may be exited from the protocol by Unbonding, and serving the 20 epoch lockup.
In the case of LP rewards, they may be extracted gradually by moving rewarded tokens to claimableby Unbonding and Bonding within the same epoch, and waiting out the 8 epoch exit lockup.
It should be noted that selling above peg is highly encouraged in order to track the peg more accurately.
However you decide to participate, it’s important to remember that time and effort are as valuable as economic input. Why not checkout our repo and suggest improvements to the protocol for a dev reward! We are always open to any and all suggestions. For ESG to be viable long term, it will require a community effort, and an open mindset for the type and scope of work which is rewardable by the DAO.
