Genesis ArenaPrice

(GENESIS)

Genesis Arena (GENESIS) is a decentralized, over-collateralized stablecoin native to the blockchain, designed to maintain a stable peg to the US Dollar. It functions by allowing users to mint GENESIS against collateral assets deposited into a smart contract vault, creating a decentralized line of credit. The protocol also serves as the platform for minting and managing GENESIS within its ecosystem.

Staking GENESIS involves depositing these stablecoins into the Genesis Arena Stability Pool. This action makes your capital available to absorb debt from liquidated collateralized debt positions (CDPs), thereby supporting the protocol's stability. In return, stakers earn rewards from two main sources: discounted collateral acquired from liquidations and governance token emissions. This mechanism offers an attractive way to contribute to the protocol's health while earning returns.

A significant risk associated with staking GENESIS is a potential misunderstanding of liquidation mechanics. When staking, users accept the inherent risk that their GENESIS capital may be used to purchase liquidated collateral. This means their GENESIS balance within the pool could decrease, while their balance of the underlying collateral asset would increase. Users must be comfortable with this asset transformation and the potential for acquiring different collateral types.

Users have two primary ways to obtain GENESIS tokens. They can mint GENESIS directly by depositing their collateral assets on the official Genesis Arena platform, leveraging the protocol's decentralized credit facility. Alternatively, users can acquire GENESIS by swapping for it on a decentralized exchange. This provides flexibility, allowing users to either create the stablecoin themselves or purchase it from existing liquidity pools.

GENESIS is the protocol's liquid governance token, meaning it can be freely transferred and traded. In contrast, veGENESIS, which stands for vote-escrowed GENESIS, is a non-transferable token. Users obtain veGENESIS by locking their GENESIS tokens for a specific period. The primary purpose of veGENESIS is to represent voting power within the Genesis Arena governance framework, granting holders influence over protocol decisions.

No, rewards earned from staking GENESIS do not auto-compound. To effectively compound their position and maximize their returns, users are required to manually claim their accumulated rewards. After claiming, these rewards must then be re-deposited back into the Stability Pool. This manual process allows users active control over their compounding strategy.