PAW Token
A special token that never dumps.
When it comes to the traditional DEX model, you earn part of the swap fees as an incentive for providing liquidity. Sometimes, the rewards you earned can not cover the impermanent loss. That's why we decided to add another layer of reward for traders, LPs, and community members. This revolutionary approach has a name: PAW.
PAW is a special ERC-20 token that acts as Gmeow's method to distribute part of its earnings to users, fully backed by USDe on Zircuit. PAW has no fixed supply as anyone can mint and redeem it anytime, anywhere.
PAW's unique features
PAW is not pegged but is fully backed by the most trusted stable assets on Zircuit
With a unique mechanism, PAW's price can not go down, and can not be lower than its collateral's value
PAW holds value down to the last holder even when everyone sells out
The value of PAW can increase faster after a massive dump
Anyone can redeem PAW for stables at any time
There’s no maximum supply
Collateral sources
Users deposit stables at the market rate to mint new PAW.
Part of the fees from transactions on Gmeow will be converted to stables and deposited into the collateral to back PAW. This deposit does not put new PAW in circulation.
There is a 1% PAW redemption fee. 100% of the collected fees will go back to the collateral to back PAW. This will drive the price momentum of PAW steadily over time.
Mint & Redeem
PAW can be minted with zero commissions at any time by depositing stables at the current rate via the PAW UI. Users can redeem the value of their PAW at any time by depositing their PAW into our website/contract and receiving stables at the current rate in return.
The PAW redeemed from users will be removed from the circulating. Redemptions will have a 1% fee attached and will be used for:
0.5% to the Collateral
0.5% to buyback and burn GM
Auto-rebasing
When collateral increases, many stablecoins increase the supply to maintain the peg or let it be overcollateralized. And when collateral decreases, many stablecoins have to lower the supply again to maintain the peg. PAW itself is not a stablecoin. Therefore, there will not be a peg. Every 8 hours, the value of the PAW is recalculated with the following formula:
All transactions on Gmeow that generate fees combined with the redemption fees will have a portion of their amount converted to stables and deposited into the PAW collateral. This means that PAW will now be overcollateralized. So, instead of letting it sit there like that, we will rebase the value of PAW at the new rate.
In this sense, PAW is much better compared to other stablecoins.
Similar to countries appreciating their currencies when their economy is doing better, the better the ecosystem does, the more PAW can appreciate in value.
The value growth is collateralized by various stablecoins and part of our protocol earnings.
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