Genshiro
Last updated: May 24th, 2021 11:45 PM CDT
The Technology
Genshiro is the canary network for Equilibrium and they are defi apps (decentralized finance applications) with a wealth of tokens available to trade on day one. Genshiro’s branding is refreshing with cool artwork and they specifically aim to cater to “brave traders” with special system parameters. They intend to test new and experimental derivatives and products within their ecosystem of smart contracts. This ecosystem is fully collateralized leaving no room for over-liquidation.
Equilibrium focuses on BTC, ETH, XRP, BNB, EOS, XTZ, and DOT, so it’s safe to assume Genshiro will focus on the same assets but with the inclusion of KSM. It’s hard to say what the Genshiro platform will be capable of since they do not have a working prototype of their app but I imagine it will be similar to Equilibrium’s app offering typical exchange options, staking pools, block-producer voting, stable coin collateralization, and liquidity rewards.
The GENS Token
Genshiro will be minting a whopping 1,200,000,000 GENS to power their ecosystem. These tokens can be used to buy Genshiro products, vote in governance, back block producers, and pay transaction fees for using their exchange. There will be no public or private sale of GENS to ensure a community driven technology; most of the tokens will be lockdropped to Equilibrium token holders who lockup their EQ for 3 months.
Since there will be such a large volume of GENS its price will likely be quite low. Genshiro’s tokenomics paper speculates a price of ~$0.0245 per GENS. Although this is a very low number, the minute granularity will allow for extreme mathematical precision in regulating the exchange.
The Crowdloan Reward
- 20% of total supply (240,000,000 GENS)
- Receive premium KSM stake rewards while your KSM is bonded toward the project
- 24 week long lease (4 lease slots, half of the maximum)
One nice thing about Genshiro is that they are rewarding crowdloaners with GENS and extra KSM. As insurance, they are offering a minimum of 5% over stake returns on Kusama to ensure that people who bond KSM toward their project do not miss out on KSM staking potential. Here is a premium chart:
What this means is that there is a 5% minimum premium on top of Kusama’s per era staking APR. Genshiro calculates the average APR per era and adds your premium on top of that which is locked until the lease is up. Let’s assume the average APR in one era is 15% and your bond is 1 KSM toward Genshiro. Here’s what your bonded amount would earn during that era:
Genshiro KSM Premium = 5% + (1 / 10001) * 0.2 = 5.002%
Genshiro KSM Era Reward = 1 KSM * [(1.15 + 0.05002)^(1 / 1460) -1] = 0.0001249 KSM
Normal KSM Stake Era Reward = 1 KSM * (1.15^(1 / 1460) -1) = 0.00009573 KSM
Difference = 0.0001249 KSM-0.00009573 KSM = 0.00002917 KSM
Since Genshiro is offering this unique return on KSM to their crowdloaners, I am omitting the comparison chart against staking; essentially if you want GENS and are willing to lock your KSM for 24 weeks, you don’t have to worry about missing out on staking. In fact, with this offer Genshiro will be the best place to stake your KSM during their lease.
Overall Evaluation
Risk: Medium
Reward: High
Novelty: Low
Utility: High
The only reason I think this is a riskier project is because they do not have any kind of app for Genshiro yet. I’m sure they will mirror their Equilibrium app but since they do not have a frontend for Genshiro and because their publications are lacking, I give this project a medium risk rating.
However, the reward alone balances the risk out. Not only will crowdloaners receive a generous portion of the total supply of GENS, but they will be given premium returns in the form of KSM during the lease period. The returns from KSM alone are more competitive than anything out there and since the lease period is a short 24 weeks, I give this reward a high evaluation.
I have said this before with defi projects but I will say it again, they are inevitable for Kusama. Although Genshiro’s branding sets them apart their services are not terribly unique. Nonetheless, defi is in huge demand for Kusama which means this project is of high utility.
