gBCH
Goblins BCH (gBCH) is an elastic supply token based on Ampleforth that targets the price of Bitcoin Cash (BCH).
Current Use Case: Bonding; supports GOB via internal bonds
Future Use Case: Staking
What is an Elastic Supply Token? An elastic supply token is a token that rebases (expands or contracts it's supply) in order to maintain a target price.
Expansion (positive rebase): When the price of gBCH > BCH, the market is indicating there is more demand than supply. In response, the protocol automatically and proportionally increases the quantity of tokens in user wallets, gradually bringing price down to its target.
Contraction (negative rebase): When the price of gBCH is < BCH, the market is indicating there is more supply than demand. In response the protocol automatically and proportionally decreases the quantity of tokens in user wallets, gradually bringing price up to its target.
When do Rebases occur? Rebases are on a timed schedule (currently once per 24hr period) but will only trigger if the price of gBCH is > the deviation threshold. The deviation threshold creates a buffer around the target price where no rebase will occur and is currently set to 5% i.e if the BCH price is $300 and gBCH price is $305, no rebase will occur as the deviance is <5%. If the gBCH price was $330, the token would rebase as the deviance is >5%. The amount the supply changes during any single rebase is determined by Rebase Lag.
What is Rebase Lag? Rebase lag dampens the rebase by setting a denominator for the rebase amount (1/rebase lag) and is currently set to 5. This means that any single rebase will only account for 20% (1/5) of the deviation. Rebase lag is instrumental in the reduction of drastic and timed supply changes that lead to cycles of high volatility.
gBCH Contract: 0x009dC89aC501a62C4FaaF7196aeE90CF79B6fC7c
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