Demands for borrowing and lending also exist in cryptocurrency market. Tokens can earn interest when they are lent out as accepted collateral to borrow other crypto assets, which is similar with the securities margin trading in traditional financial market.
Lend：Lending tokens can gain interest. After all, simply keeping cryptocurrency in the wallet is a great loss of potential profits.
Borrow: Borrowing happens when a borrower demands for certain digital assets. For example, people, who are reluctant to sell out their possessed cryptocurrencies due to the growth prospects, can borrow target tokens by pledging holdings instead of selling them. Alternatively, short-selling is feasible by pledging holding tokens and borrowing target assets to sell. When the price of the target assets drops and they are bought back at a lower price, profit is gained from price spread.
What we can foresee is that the rise of DeFi in the future must not be solely based on underlying assets such as ETH. A lot of off-chain transactions will happen in blockchain networks. As a result, off-chain assets will have a higher proportion. The current borrowing and lending protocol only supports some mainstream underlying tokens, and it cannot meet the loan demand of a large number of tokenized real assets. In order to solve this issue, GAMA arises.
Whether in Compound or Aave, all assets are put in a same pool. But GAMA allows users to build a new pool that is under self-management and independently operation, just like a private Compound that can customized lending tokens, pledging assets and pledging rate.
"GAMA" pool is managed by GAMA team for now, and only supports tokens that are limited in stable coins and other tokens with stable price, widely acceptance and highly liquidity.
At present, the funds in "GAMA" pool and those other pools are completely independent. However, for higher profits, GAMA V2 will allow assets in "GAMA" pool to flow into other pools at protocol layer under the specific rules and valuation of risk and return. Of course, the GAMA community will decide whether these actions will be implemented.
As it was said before, pool#0 is managed by GAMA owner, and only supports tokens that are limited in stable coins and other tokens with good safety, stable price, widely acceptance and highly liquidity, including DAI, USDC, USDT, wETH, wBTC. The interest rate calculating mechanism is same as Compound. allowing creators to customize any token issued by the ERC-20 protocol in other pools. The interest rate can also be customized by the governor. As for the profit distribution, platform charges 5% of the total interest and the rest belongs to suppliers.
Now at version V1, GAMA's oracle mainly relies on the mainstream protocols - Uniswap for price feed. That means if you want to create a new market on GAMA, you must make sure that the token has been traded on Uniswap at first.
GAMA is a fork follows Compound, which has been in operation for 2 years and its locked position reaches nearly 1 billion USD. Therefore, we can guarantee the security of these basic codes.
GAMA tokens mainly distribute by liquidity mining. And it will start without pre-mining. The total supply and issuing mechanism will be announced before starting liquidity mining.
All members in the development team remain anonymous for GAMA is a completely open financial experiment conducted by the GAMA native community.