TL;DR

• Introducing Gable’s custom token; GAB.
• At genesis 1 Billion GAB will be minted.
• 55% of GAB will be distributed to the community over a ~4.5 year period. 10% of total supply to early adopters; 45% of total supply for long-term adoption.
• 20% of GAB allocated for team members — with 4 year vesting.
• 15% of GAB is allocated for operational expenses — with no vesting.
• 10% of GAB is allocated for an investors round — with 2 year vesting.
• 1% perpetual inflation rate.

GAB

GAB will be the custom token for the Gable protocol. This token will be issued deliberately after the first release of the protocol (Gable Version 1). From Gable Version 2 and onwards, GAB will play a pivotal role in interacting with the protocol and contributing to its governance (see details below).

GAB Use Cases

GAB will provide additional benefits and incentives to both suppliers and borrowers within Gable’s ecosystem.

Utility

Suppliers may gain access to enhanced rewards, reduced fees, or exclusive features, while borrowers can enjoy discounted interest rates or access to a wider range of lending options. This utility token will play a crucial role in further incentivizing engagement and usage on our platform.

Governance

The Gable token will also serve as a governance token. Token holders will have the opportunity to participate in the decision-making processes of Gable enabling them to vote on key proposals and protocol upgrades. This ensures that our community plays an active role in shaping the future direction of Gable.

GAB Allocation

At genesis, 1,000,000,000 GAB tokens will be minted, which will become available over an approx. 4.5 year period. The tokens will be allocated as following:

• 55% of tokens will be distributed to the community: 550,000,000 GAB
• 20% of tokens will be distributed to the team: 200,000,000 GAB
• 15% of tokens will be dedicated to cover operational expenses: 150,000,000 GAB
• 10% of tokens will be distributed to investors: 100,000,000 GAB

55% Allocated for Community:

55% of our token supply, has been reserved to empower and reward our valued community members. This allocation is designed to promote active engagement, participation, and long-term commitment.

• 10% of total supply will be dedicated to early adopters, distributed over a 6 month period.

To recognize the importance of early adopters, we have allocated 10% of the total supply for borrowers and suppliers on Gable V1. 5% of total supply will be awarded to borrowers on the platform, based on relative value borrowed on the platform. Similarly, 5% of the total supply will be awarded to liquidity suppliers on the platform, based on the relative value staked with Gable validators.

Airdrop Campaign:

Our airdrop campaign will commence on the first day of V1’s release (scheduled for October 31st). Snapshots of the protocol’s state will be taken on am hourly basis, and airdrops will be distributed monthly. This exciting initiative will run for a duration of six months, providing an excellent opportunity for our community members to benefit from their engagement.

• 45% of total supply will be dedicated to long-term adopters, distributed over a 4 year period.

To ensure longevity and continuity of the protocol and its community, a 4 year adoption program will be launched. This program will consist of campaigns, such as liquidity mining, staking, and more.

This program will kickstart at launch of V2 of the protocol. Before this period, these tokens will remain vested. Note: Launch date of V2 of the protocol, plus details on the campaign program to distribute these tokens remains to be announced.

10% Reserved for Investors:

In preparation for the launch of V2 of our protocol, we have reserved 10% of the total token supply for an investor round. However, it’s important to note that the development of V2 is anticipated to span at least six months. During this period, these tokens will be vested.

After completion of the investor round, the tokens will be vested for 2 years — releasing tokens consistently every 6 months.

20% Allocated for Team:

Team tokens can, and will, be dedicated to current and future team members. These tokens have been structured with a 4-year vesting period, featuring consistent release intervals every six months.

Note: In the case of future team members, we are committed to developing a retention plan. This plan will introduce an additional vesting period for their tokens

15% Allocated for Operational Expenses

We have allocated 15% of the total token supply to ensure the smooth and robust operation of Gable. These tokens will not be vested, as they need to be free to cover expenses and ensure the continuity of Gable.

These tokens will be utilized to cover a range of essential costs, including but not limited to:

1. Marketing: A portion of these tokens will be directed towards marketing efforts, enabling us to reach a wider audience, expand our user base, and promote Gable.
2. Auditing: Ensuring the security and trustworthiness of our protocol is a top priority. A portion of the allocation will be utilized for third-party audits, ensuring that our smart contracts and code are thoroughly reviewed and free from vulnerabilities.
3. Listing on Exchanges: To enhance liquidity and accessibility, we will allocate funds to list our custom token, GAB, on reputable cryptocurrency exchanges.
4. Advisory Services: We will engage experts and advisors to provide guidance on various aspects of our project, such as regulatory compliance, strategic development, and technical excellence.
5. Operational Expenses: The tokens will also cover general operational expenses, which include infrastructure maintenance, legal compliance, administrative overhead, and any other costs necessary to ensure the efficient functioning of the lending protocol.

This results in the following release schedule:

Sustainable Growth with 1% Annual Inflation

We are committed to encourage active participation and contribution within the Gable. To ensure the long-term health and sustainability of our ecosystem, we are introducing a perpetual inflation rate of 1% per year. This inflation mechanism will come into effect after the last tokens from the initial release schedule have been distributed, approximately 4.5 years from now.

This 1% annual inflation will completely be dedicated for participation on the protocol, by the community. Therefore, this inflation is designed to serve several important purposes:

1. Incentivizing Participation: It encourages users to actively engage with the protocol by providing them with ongoing token rewards.
2. Sustainable Tokenomics: This controlled inflation rate helps strike a balance between maintaining the value of our custom token, GAB, and stimulating economic activity within our ecosystem.

The name “Gable” holds a special connection to Amsterdam’s rich history and our company’s location. It’s inspired by the unique architectural feature found on many buildings in Amsterdam — stepped gables. Stepped gables were symbols of prosperity and social status. In a city renowned for its canals, tulips, and commerce, these gables stood as a testament to the wealth and ambition of its inhabitants.

Gable is more than just a name — it’s a reflection of our connection to the city’s past and our vision for the future. We’re committed to carrying forward the spirit of innovation and prosperity that has defined Amsterdam throughout its history.

So, when you see our logo, think of those beautiful stepped gables that have stood the test of time, and know that we’re here to build a successful and enduring future in this vibrant city.

Staking forms the fundamental value proposition for any proof-of-stake network, providing a range of benefits like enhanced network security and passive asset earnings. At Gable, we strongly believe that staking offers even greater potential for value creation. Our protocols first version embodies this belief — breaking away from conventions and redefining the staking concept.

Gable operates as a liquidity market protocol, built on Radix DLT, offering lending products for borrowers and liquidity solutions for suppliers. Upon its initial release, the product offering will include two key features: (1) Liquidity collection through staking rewards as a liquidity solution, and (2) flash loans as a lending solution.

Liquidity collection via Staking Rewards

In traditional staking, users’ earned rewards are compounded on top of their initially staked assets. These accumulated rewards remain idle at their validator node until an unstaking event occurs. However, unlike the initial staked assets, the rewards are not subject to a lock-up period of approximately two weeks. As a result, users can access and utilize the staking rewards instantly, allowing them to generate additional value right away.

The mechanism operates as follows: A 100% fee is charged on staking, which results in the rewards to be released to the ‘owner’ of the validator node, rather than the validator node itself. The ‘owner’ can be anyone assigned the ‘owner’ role, such as an account address or a component address (like a smart contract). By granting the ‘owner’ role to a component, it opens the possibility of building an entire dApp around it. This concept serves a fundamental role behind Gable version 1.0.

Gable’s validator node applies a 100% fee on staking, releasing the staking rewards from the staked assets and depositing them into a liquidity pool. From this pool, lending products are issued, generating interest income. Suppliers, or stakers, receive 100% of these staking rewards (proportional to their stake) and also earn a share of the interest, compounding their return on staking rewards. This combination empowers stakers to increase their earnings on staking.

Collecting liquidity via staking rewards; a novel and innovative concept, unprecedented in the crypto space thus far.

Version 1.0 of the Gable Liquidity Protocol has been fundamentally built around the concept of collecting liquidity via staking rewards. The liquidity and lending solutions offered by the protocol are tailored to be compatible with each other and the network it operates on.

Liquidity vs. Lending Solution: A Marriage story

When it comes to collecting liquidity, various characteristics like durability, seasonality, magnitude, and timing of liquidity streams come into play. It’s essential to design the lending product(s) that utilize this liquidity in a way that aligns with these characteristics.

Collecting liquidity via staking rewards presents a highly durable approach due to the inherent ‘freeze’ feature of the network. Stakers must undergo a two-week lock-up period to unstake, introducing a barrier that enhances the durability of the liquidity pool.

Staking rewards are earned gradually over time, causing the liquidity pool to grow at a similar pace. Additional liquidity comes from interest earnings, enabling the pool to grow exponentially. This combination empowers the liquidity pool to strengthen and expand.

Liquidity Protocol and Network: Another Marriage Story

With Radix DLT’s upcoming Babylon launch, the ecosystem eagerly awaits the inclusion of programmability through smart contracts. As the Radix network is in its youthful state, it is likely to exhibit certain characteristics:

1. Low Adoption and Network Activity

During the launch of smart contract functionality, the network’s user base will be limited, leading to limited adoption. This early stage might be accompanied by a lack of liquidity and price discrepancies across exchanges.

1. Limited ecosystem

Radix’s ecosystem is still in development, and there might be a scarcity of well-audited and secure third-party applications and services. Key products like stablecoins, decentralized exchanges, and oracles could be immature or still under development.

Gable’s first release has been tailored to accommodate these characteristics by both avoiding associated risks and capitalizing on the opportunities they bring. In light of the infantile network, Gable deliberately avoids external dependencies until dApps mature and stabilize. Therefore, lending products that rely on stablecoin issuance or real-time price information from oracles have been excluded in the initial iteration. The team recognizes that relying on such services carries the risk of impacting Gable’s continuity, a risk we are not willing to take.

To address the lack of liquidity and price discrepancies across exchanges, Gable’s lending product offers instant liquidity, providing opportunities for arbitrage and liquidity enhancements. This feature aims to benefit the network and overcome these imperfections.

Flash loans as Lending Solution

Flash loans are a unique concept to the crypto space, allowing loans to be executed within a single transaction. Their exceptional characteristics offer endless opportunities for borrowers, traders, and investors throughout the industry.

One of the key features of flash loans is the smart contract’s ability to revert the loan if the agreed-upon terms are not met before the transaction is finalized. This unique property eliminates the need for collateral, making flash loans a safe and reliable concept for both borrowers and lenders. With no requirement for collateral, flash loans become an unsecured yet trustworthy option.

Moreover, the absence of collateral saves Gable from the necessity of implementing an oracle service for real-time price information on the collateral/borrowed token pair — a step we are hesitant to take at this stage.

In the short term, the majority of tokens will be trading against XRD — Radix’s native coin. As a result, issuing flash loans with XRD proves highly advantageous, effectively mitigating price discrepancies across exchanges and eliminating the necessity for stablecoin loans.

One drawback of collecting liquidity via staking rewards is the inability to adjust the available liquidity in response to changing market conditions. However, the instantaneous nature of flash loans minimizes the impact of such changes, effectively overcoming this limitation. Since liquidity never leaves the pool for more than one transaction, the pool remains consistently balanced over time, providing a flexible and dynamic solution.

At Gable, we firmly believe that success lies in creating synergy across products.

Our first release brings a combination of liquidity and lending solutions to Radix, tailored to complement each other and accommodate the network that supports the protocol.

Thank you for reading! If this post sparked your interest in Gable, please visit these channels for more information:

Visit Gable’s website: gable.finance

Follow Gable on X: x.com/Gable_Finance