Grand Base Protocol FAQ

1. What is the Grand Base Protocol?

  • Grand Base Protocol is a decentralized finance (DeFi) platform that allows users to create, trade, and stake synthetic assets, known as "gAssets".

2. What are gAssets?

  • gAssets are synthetic tokens on the Grand Base Protocol that track the price of real-world assets, such as stocks, commodities, or other financial instruments such as ETF.

3. How are gAssets' prices determined?

  • The valuation of gAssets aligns with traditional market trading hours, but they can be traded anytime on supported decentralized exchanges (DEXs).

4. What are LP tokens?

  • LP tokens represent a user's share in a liquidity pool. They are given to users when they provide liquidity to gAsset-USDC or GB-USDC pools.

5. What is the Auction Discount Rate?

  • The Auction Discount Rate is a discount offered during the liquidation of collateral. For instance, if the rate is 20%, a buyer can purchase $100 worth of collateral for just $80.

6. How can I avoid liquidation?

  • Users should maintain a collateral ratio that factors in the price dynamics of the synthetic asset. It's recommended to have a safety buffer above the gAsset's minimum collateral ratio and actively monitor price activity.

7. Can I earn rewards with Grand Base Protocol?

  • Yes! Users can stake LP tokens and trade on the platform to receive xGrand Base Token (xGB) rewards. The protocol distributes xGB tokens to stakers in proportion to their total weighted stake.

8. What is the role of the xGB token?

The xGB token is a reward token associated with the Grand Base platform. Users earn xGB tokens as incentives for various interactions and tasks performed on the platform. xGB tokens can be exchanged at any time for liquid $GB.

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