Snap out of it!

I know the markets are boring, and you’re losing hope trading the chop, giving back all your hard-earned shekels to the market.

Time to stop anon before you lose it all. DeFi and fundamentals are back on the menu.

The GammaSwap TGE.

Market the date fellas and fellitas, 30th of August.

So why should you care about the GS TGE?

Well, if you’ve been doing yourself the great disservice of not paying attention to blocmates, then you may have missed our previous article on GammaSwap. It’s a banger, and I highly recommend checking it out.

But for you lazy apes, let me give you a quick rundown.

The article essentially covers the new GammaSwap product called perpetual options. It is essentially an option product that gives you similar exposure to a traditional option contract but does not have an expiry date and introduces borrow rates as well as a time to liquidation.

Seriously, check out the article for a more detailed breakdown. It’ll be worth your while.

This new product can essentially be crypto’s answer to traditional options, in the same way that perps were crypto's answer to traditional futures.

If this product does turn out to be a hit, let me just give you some context for how big things could get.

In tradfi, the derivatives market is more than 10x the value of the equity market. The majority of this is options volume. In crypto, when perps came to market as the go-to derivatives product, it completely took over and now dominates volume.

Now, think about how small the options industry is in crypto. If the gigabrains at GammaSwap have actually hit on something big, we could be in for a wild ride.

Therefore, we are doing our civic ape duty at blocmates, and showing you how to effectively play the GS TGE.

This goes without saying, but none of this is financial advice. I am simply presenting publicly available information.

The GS Tokenomics

There are three elements to the GammaSwap tokenomics:

• GS
• esGS
• MP

GS is the governance token of GammaSwap. It will be completely liquid and tradeable and can also be staked to earn 30% of revenue share in ETH, esGS, and MP from the platform.

esGS is the escrowed version of GS and is primarily used as an incentive mechanism. It is not transferable. Other than staking, esGS can be earned through liquidity mining and then staked for even more esGS. Eventually, this esGS is convertible to GS.

MP stands for multiplier points. It is a way to give additional rewards without ridiculous inflation. Stakers can earn these multiplier points, which gives them boosted rewards, but once they remove their GS or esGS from the staking vault, a proportional amount of MP is burned.

If you are familiar with the highly successful tokenomics of GMX and esGMX, then you will be happy to know this is very similar.

Here’s what the GS supply and distribution looks like:

Total supply:1,600,000,000 GS

Note that the core team will have a 12-month cliff with a 24-month linear vesting after, and the private investors will have a 12-month cliff with an 18-month linear vesting after.

Okay, so now you get the gist of the GS token. So, how do you go about playing the TGE?

The GS LBP

GS will be launching through an LBP.

No, it’s not a Fjord Foundry LBP, which inevitably ends with down-only charts. This LBP will be hosted on GammaSwap itself.

So that means no additional fees for you guys.

This is what the basic parameters are:

• Chain - Arbitrum
• Accepted assets - ETH, USDC
• Pooled assets - 105M GS & $95K in ETH
• Start price - $0.0433 ($70M FDV)
• End price -  $0.0156 ($25M FDV)
• Duration - 3 days

As with all LBPs, the price will start high and decay over time as liquidity is added to the bonding curve.

Now, pardon me for stating the obvious, but the way you play this LBP really comes down to the time horizon you operate on, and how bullish you are on GammaSwap as a whole.

If you are long-term bullish GammaSwap like we are, then your best bet is to just take it easy and DCA the LBP over the 3-day period.

If you’re looking long-term, then anywhere between $25M-$70M is a great price if you think perpetual options are going to take over. So, all you have to do is keep buying at regular intervals because the price will keep going down along the bonding curve.

You have three whole days to sporadically buy and touch grass.

This way, you can get your desired exposure within a great price range, sit on your hands, and then look back a year or two from now.

On the flip side, an ADHD-riddled ape could make a small purchase at launch, then wait it out a little bit and gauge how strong demand is. If there are no signs of demand slowing down, then they may want to take their profit within the LBP time frame and move on.

If demand does slow and prices start to come lower, then you get an opportunity to buy more at lower prices and maybe sell the impulse after launch.

However, we personally do not believe that the short-term strategy is the way to go.

LBPs are designed to make token distribution at launches as fair as possible. Playing them short term is very hard because it comes down to predicting how strong short-term demand will be.

Instead, we believe the best way is to DCA at different price levels and gradually build your GS position. Then you can stake that GS and earn a percentage of revenue share of the platform.

Once you believe your investment thesis has come to fruition, then you can withdraw and sell or do whatever you please.

Just before we end, we would like to emphasize that this is not financial advice of any kind. We do not promise any profit from this; all we are doing is sharing what we think is the optimal strategy. So, before aping, please DYOR.

Important Links:

Website - https://gammaswap.com/

Twitter (X) - https://x.com/gammaswaplabs

Discord - https://discord.gg/gammaswaplabs

GS LBP X Article - https://x.com/GammaSwapLabs/status/1826251712643965189