GAMA Overview

"GAMA" (gama.finance) is a DeFi protocol that supports lending and borrowing for all ERC20 Tokens.

Ⅰ. Two major features of GAMA protocol:

Supports all tokens:

GAMA, with no barriers to entry,is available for all ERC-20 tokens to involve in the DeFi money market.

No Pre-Mine:

GAMA liquidity providers can earn rewards in the form of GAMA tokens. The protocol regulates the distribution of GAMA tokens under no pre-mine, no pre-sale, no founder shares, no public or private placements.

Ⅱ.What user requirements can GAMA meet?

GAMA will produce returns to users’ cryptocurrencies in the platform and meet their need in margin lending and short selling.

Deposit And Finance Management:

Crypto asset holders could lend their assets to gain investment earnings while there is no yielding interest other than the currency appreciation if they just keep the assets in pocket.

Financing/Borrow:

If users need to obtain specific crypto assets, but are not willing to sale their holdings in consideration of the growth potential, they can pledge the assets they owns for a loan to buy target assets. For example, a user who holds a large amount of BNB, is in urgent need of USDT, while he is reluctant to sell BNB he holds at the moment for its potential appreciation. In this case, he can obtain USDT via borrowing.

Securities Loan: Users can pledge assets to borrow their target tokens and then resell them in the market if they speculate a deflation. They will profit from the price differences by buying the assets they sold out when the prices fall. For example, users can pledge stablecoins or other assets to borrow OKB to resell when there is a predicted decline,and then buy the same amount of OKB at a lower price to pocket the spread and pay off the loan.

Ⅲ. Competitive analysis on Compound and Aave

At present, Compound and Aave are most prevailing among the decentralized money market protocols. The major differences between GAMA and them are:

GAMA avoids cryptocurrencies risk contagion effect

With all assets putting in the same lending pool, Compound and Aave can not realize risk ranking and risk isolating effectively. This problem cannot be thoroughly solved though they can regulate risks within a certain extent by controlling the pledge rate. In the floating cryptocurrency market, many tokens depreciate sharply to a price less than 1% of the peak. However, it can hardly meet the needs of users if limit the pledge rate of the token to1%. GAMA, by keeping liquidity pools independent of each other to ensure the complete isolation of risks between them, is free from these troubles.

GAMA supports all ERC20 tokens

Every newly entered token in Compound and Aave needs review of Protocol Governance (namely, the entry barrier), which is inefficient and inconsistent with DeFi's principles of open and decentralization. However,GAMA will support all tokens under the ERC-20 protocol for lending and borrowing.

GAMA allows users manage their customized pools separately

Unlike Compound and Aave, which mixes all assets in a same liquidity pool, GAMA allows users to create new independent liquidity pools completely independent from each other. It can be understood that GAMA allows users to create multiple independent compounds, in where tokens are available for borrowing and lending,meanwhile, the pledge rate can be set by users themselves as well.

GAMA tokens are distributed with no pre-mine

Not all governance tokens of compound and Aave are allocated to users. Insread, they reserve a high proportion of tokens for team members, shareholders and the Compound and Aave ecosystems, which results in the impairment of fairness of token distribution and the high risk for individual users to buy high. GAMA tokens are distributed to liquidity providers without pre-mine, pre-sale, public or private placements, crowdfunding, team rewards and dividends for shareholders. All tokens will be mined by the community.