Pre-Deposit

The GRID Games is DayFi’s incentive campaign to scale TVL in mainnet beta. The GRID Games will commence with the Pre-Deposit campaign.

Pre-Deposit Details

The pre-deposit vault will utilize Upshift’s vault infrastructure, and is curated by K3 Capital. The pre-deposit vault will be capped at $50 million, with some flexibility upward based on demand. Deposited funds will be locked for 2 months, and may generate yield through K3’s curation strategies.

The pre-deposit vault will accept USDS and USDT on Ethereum Mainnet as deposits.

K3 Capital retains discretionary management over the curation strategy, including bridging to Plasma, where they will earn a base yield from Sky, Aave, and K3’s Euler Vault, as well as XPL incentives and boosted GRID Games points. Changes to the curation strategy are at K3's discretion.

The predeposit vault will be converted to GRID/sGRID at the formal launch of the protocol beta. The vault will convert into the ecosystem vault, where it will provide liquidity throughout the DayFi ecosystem.

The Vault will open simultaneously for all participants. Deposits are accepted on a First In basis.

DayFi will use Merkl to operate the incentive campaign.

Points are issued to incentivize the growth and depth of the DayFi ecosystem. Point values are subject to change at any time. A full summary of anticipated points are available here.

• GRID will not be subject to TVL caps in efforts to keep this cash-equivalents backed token pegged to $1.

• sGRID will be subject to TVL caps, which may be progressively raised based on ecosystem growth.

Base Points

As sGRID drives the majority of the protocol’s fundamental value, and GRID supply is uncapped, it will be rewarded higher than GRID at a base level. Strategies (eg DEX liquidity, Pendle liquidity, YTs) increase point earnings through multipliers.

• GRID Base Points: 1x

• sGRID Base Points: 3x

Since GRID is uncapped, the daily points earned per GRID begin to degrade as the protocol stake rate decreases below a threshold of 25%. These points degrade at a rate of 3% per day the stake rate falls below 25%. If the stake rate readjusts to 25%+, the GRID points per day increase by 3% up to the default rate.

Time-in-Protocol Boost

The protocol also prioritizes earlier deposits. A “time-in-protocol” boost ensures that early participants that remain in the protocol are rewarded the most. The boost starts at 3x at the inception of the GRID Games, and then declines by 3% per day. The boost has a minimum bound of 1.0x.