Introducing the Glitter Arbitrage Bot
Apr 9, 2023
Launching late April, Glitter Finance's XGLI DAO gives stakeholders in the community control over the powerful cross-chain XGLI token. As a core part of Glitter's web3 mission, the DAO both empowers and incentivises token holders to take an active role in shaping the protocol.
The XGLI DAO is an important milestone for the Glitter Finance project and the Glitter community. But before we get there, let's start from the top: what even is a DAO?
What is a DAO?
Decentralised Autonomous Organisations (DAOs) give communities the power to influence the direction of the projects they're involved in. They're a realisation of the web3 ideals of decentralisation, distributing power from the top of an organisation and placing it in the hands of stakeholders.
DAOs have different forms depending on the needs and vision of the organisation's creators, but most share these key characteristics:
- Decentralisation: Rather than being governed by a centralised body, decision-making power is shared among members or stakeholders. Membership is typically based on holding tokens that grant voting rights.
- Autonomy: DAOs are designed to function independently without requiring human intervention. Smart contracts can automatically execute some decisions based on the outcome of a vote, and the team behind the protocol is typically committed to implementing decisions in keeping with the spirit of the resolution.
- Transparency: All aspects of a DAO's operations, including proposals, votes, and implementation, are open and transparent to members. This promotes accountability and ensures all stakeholders have oversight over the decision-making process.
- Community-driven: DAOs derive their strength from their community. They are built to empower users and stakeholders and often reward them for participating in the organisation.
Transparent, secure blockchain infrastructure makes DAOs possible. DAOs themselves are what enable decentralised applications such as Glitter to operate as closely in line with web3 ideals as possible.
Let's dive into the specific features of the XGLI DAO.
The XGLI DAO
The XGLI DAO's primary purpose is to govern Glitter Finance's powerful XGLI token. It empowers token holders to have a say in the direction and utility of XGLI and gives them some control over the future of Glitter Finance.
There are four key aspects of Glitter that are either enabled or governed by the XGLI DAO.
XGLI is the lifeblood that powers Glitter's cross-chain ecosystem. It runs through swaps, plays a role in Rainbow Network node deployments, and, of course, allows participation in the DAO. While XGLI already has a broad range of utilities, this list will continue to grow as the protocol develops and grows.
DAO members have direct input on this utility. Participants can propose new utilities and vote on resolutions regarding development, ensuring all stakeholders have a say in how the protocol grows.
As Glitter expands to support more blockchain networks, new XGLI listings will be needed to add the token to additional Decentralised Exchanges (DEXs) and Centralised Exchanges (CEXs). This is an important decision as it will dictate how some new users gain access to the broader Glitter ecosystem via the XGLI token.
The DAO will have control over these listings, dictating where and when to list a token, as well as where to create staking pools to encourage liquidity provision.
Burns, staking, and rewards
XGLI is designed to create utility for holders while also rewarding long-term supporters. To this end, several programs are in the works to not only give back liquidity contributors on exchanges but also create deflationary pressure on the token supply.
To this end, DAO members will have a say in creating new staking pools and their associated reward rates, including pools that encourage liquidity contribution to XGLI pairs on exchanges. These rewards will also support those contributing liquidity to Glitter's own liquidity pools, particularly those supporting the XGLI Cross-chain Swap protocol.
As per the XGLI tokenomics, Glitter holds a supply of XGLI tokens in reserve to help support new listings and other important ecosystem functions. In some cases, these allocations have remained unspent and are now locked in the Glitter treasury. The DAO can vote to burn some of these tokens, as well as vote on other burn mechanisms within the Glittler ecosystem.
The XGLI DAO provides a platform for all stakeholders to come together and collaborate on important decisions that will shape the future of the Glitter Finance ecosystem. By placing power in the hands of the users who are invested in the future of the platform, the DAO helps to foster a strong and engaged community that is committed to the long-term success of Glitter.
In keeping with the decentralized mission of the DAO, Glitter is committed to distributing a majority stake of XGLI tokens to the community. Only 10% of tokens are kept by the team, while the remainder will be used for rewards and incentives. While token balances will of course vary over time, at least 51% of all XGLI will be in the hands of the users with the final numbers likely much higher.
Thanks to the DAO, XGLI will become a truly decentralised token to the benefit of all stakeholders.
XGLI Token utility
While the XGLI DAO is certainly something to look forward to, the XGLI token itself is more than just a key to the community. It's a powerful cross-chain token with native support on four blockchains and unlocks massive utility within the Glitter Finance ecosystem.
Bridge value across chains
With the XGLI Cross-Chain Swaps protocol, bringing value from one chain to another is as simple as a few clicks. Quickly swap tokens across ecosystems using XGLI, making cross-chain transfers quick, affordable, and incredibly secure.
Because XGLI is native to the blockchains it serves, there are no token-wrapping contracts and no mint functions to exploit. This has been the Achilles Heel of other token bridges in the past---Glitter solves this problem by removing it altogether.
Users will also be able to pay bridge transfer fees using XGLI. If you're a staker or liquidity provider in the Glitter Finance ecosystem, this means that your rewards could potentially offset fees incurred while bridging. This both incentivises staking and rewards users for their commitment to the protocol.
Activate Rainbow Network listener nodes
Rainbow Network is an interoperable blockchain stack built by the people that created Glitter. It takes Glitter's mission to the next level by developing an interoperable blockchain environment that allows developers and users to access liquidity from any supported blockchain just by building on Rainbow infrastructure.
Rainbow will use secure listening nodes from the Glitter Bridge on supported chains to enable cross-chain communications. These nodes require XGLI to active and will earn rewards in XGLI tokens.
Participate in the future of blockchain interoperability
Whether you're looking to move value from one ecosystem to another, earn great staking rewards, or want to dive deeper into interoperability, the XGLI token unlocks an ecosystem of benefits for holders. By participating in the XGLI DAO, you'll be shaping the future of cross-chain web3 while guiding the token that's the key to it all.
XGLI DAO: For a Decentralised Web3
XGLI is already available on Algorand and Solana, with native support for Ethereum and Arbitrum launching very soon. Once deployed across four of the most important blockchains, stakeholders can expect the XGLI DAO in mid-2023.
With the XGLI DAO, Glittler Finance takes a big step towards full decentralisation. For token holders, it unlocks additional utilities and a say in future development. And for users just looking to bridge, it provides extra transparency to the Glitter protocol and additional peace of mind.