Gluon W±

A new stablecoin protocol that functions as the dual of a liquidity pool, addressing limitations in existing protocols like Djed and SigmaUSD. Gluon W± operates on the Ergo blockchain with strong performance since early 2021.

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What is Gluon W±?

Gluon W± is a stablecoin protocol presented by Bruno Woltzenlogel Paleo during the Ergoversary Summit 2023. It aims to address limitations in existing protocols like Djed and SigmaUSD by functioning as the dual of a liquidity pool, focusing on the pair of Stablecoin ReserveCoin (SigRSV and SigUSD) rather than ERG and SigmaUSD.

Strong Performance

Gluon W± has demonstrated strong performance on Ergo, surviving market crashes since early 2021 while many other stablecoins have failed.

  • Survived market crashes since 2021
  • Robust against volatility
  • Proven track record

Duality Concept

Gluon W± functions as the dual of a liquidity pool, with one asset remaining in the reserve while newly generated assets exist outside the reserve.

  • Dual of liquidity pools
  • Focuses on SigRSV and SigUSD pair
  • Innovative protocol design

Nuclear Reactions

The protocol introduces nuclear reaction concepts: fission, fusion, beta decay plus, and beta decay minus for managing stablecoins and reservecoins.

  • Fission: Split ERGs into stablecoins/reservecoins
  • Fusion: Combine stablecoins/reservecoins to regenerate ERGs
  • Beta decay: Convert between stablecoins and reservecoins

Advanced Pricing

Uses reaction equations and price equations to determine amounts from fission and fusion, with Q function considering oracle price.

  • Reaction equations for amounts
  • Price equations for neutron/proton prices
  • Q ratio and beta decay fee formulas

Performance and Issues

Gluon W± has demonstrated strong performance on Ergo, surviving market crashes since early 2021 while many other stablecoins have failed. However, Bruno acknowledges that there is always room for improvement.

Strengths

  • Survived market crashes since 2021
  • Strong performance on Ergo
  • Innovative duality concept

Current Issues

  • Sensitivity to oracle
  • Reserve drainage by whales
  • Zero equity problem

Concept and Functionality

Bruno had a breakthrough moment while contemplating liquidity pools and their relationship with Djed. This led to the idea of creating a new stablecoin protocol that functions as the dual of a liquidity pool.

Gluon W± does not operate as a liquidity pool for the ERG and SigmaUSD pair but rather focuses on the pair of Stablecoin ReserveCoin (SigRSV and SigUSD).

Liquidity Pools

Two assets remain in the pool, traditional AMM approach

Gluon W±

One asset in reserve, generated assets outside, dual approach

Actions and Reactions

Fission

Allows for the splitting of Ergs into stablecoins and reservecoins, similar to nuclear fission where atoms split into smaller components.

Fusion

Combines the neutrons and protons (stablecoins and reservecoins) to regenerate Ergs, similar to nuclear fusion where smaller components combine.

Beta Decay Plus

Resembles swaps in liquidity pools, enabling the conversion of protons to neutrons (stablecoins to reservecoins).

Beta Decay Minus

Enables the conversion of neutrons to protons (reservecoins to stablecoins), the reverse of beta decay plus.

User Interface and Operations

The protocol allows for buying and selling stablecoins and reservecoins through compositions of primitive reactions. Bruno explains how these derived operations can be achieved by combining fission and beta decay.

The user interfaces can simplify these processes for users, enabling them to focus on their desired transactions without needing to understand the underlying nuclear reaction concepts.

Buying Stablecoins

Combination of fission and beta decay operations

Selling Stablecoins

Reverse operations through fusion and beta decay

Implementation and Future Plans

Implementation on Ergo is underway. The contract is being developed by Kii for the backend, while Sangeet works on the frontend. The protocol will utilize the new Gold Oracle, similar to DexyGold.

Current Development

  • Backend contract by Kii
  • Frontend by Sangeet
  • New Gold Oracle integration

Future Plans

  • Replace minimal Djed in SigmaUSD
  • Deploy new USD stablecoin
  • Extended Djed protocol improvements

Common Questions

What makes Gluon W± different?

Gluon W± functions as the dual of a liquidity pool, focusing on the pair of Stablecoin ReserveCoin rather than ERG and SigmaUSD. It introduces nuclear reaction concepts (fission, fusion, beta decay) for managing stablecoins and reservecoins.

How has it performed?

Gluon W± has demonstrated strong performance on Ergo, surviving market crashes since early 2021 while many other stablecoins have failed. It has proven to be robust against market volatility.

What are the current issues?

Current issues include sensitivity to the oracle, reserve drainage by whales, inconvenience for reserve coin holders unable to sell back reserve coins below the threshold, and the zero equity problem. These are being addressed in proposals for an extended Djed protocol.

When will it be available?

Implementation on Ergo is currently underway. The contract is being developed by Kii for the backend, while Sangeet works on the frontend. The protocol will utilize the new Gold Oracle, similar to DexyGold.

Resources & Community

Development Team

  • Bruno Woltzenlogel Paleo (Lead)
  • Alexander Chapournoy
  • Kii (Backend Development)
  • Sangeet (Frontend Development)
"Bruno had a breakthrough moment while contemplating liquidity pools and their relationship with Djed. This led to the idea of creating a new stablecoin protocol that functions as the dual of a liquidity pool."