Vault System
The Vault is a decentralized liquidity pool that facilitates the Advance phase, allowing users to deposit stable assets and receive internal $GGA tokens. It determines token pricing and supply logic without centralized control. The Vault ensures that each Advance operation is calculated fairly based on real-time market conditions.
What the Vault Does
The Vault serves two primary functions:
Minting $GGA
Users deposit stable assets and receive a calculated amount of $GGA tokens. The more stablecoins already in the system, the fewer tokens each new deposit will generate — due to the rising price curve.
Redeeming $GGA
Users can return $GGA tokens to withdraw stable assets at any time.
How Pricing Works
The vault operates using a virtual Automated Market Maker (vAMM) model, governed by the constant product formula:
Where:
x = the reserve of stable assets in the Vault
y = the reserve of internal $GGA tokens.
k = constant value
This pricing logic means:
As more users Advance stable assets (x increases), the available $GGA output (y) must decrease to preserve k
This results in a price increase for $GGA as the system grows
Conversely, if users Repay and withdraw stable assets, token price adjusts downward
How the Price Changes After Each Advance
Token pricing in GPT Gold follows a bonding curve, meaning each new Advance affects the next user’s price:
Early users receive more $GGA per advance
Later users pay more per $GGA token as liquidity in the Vault increases
Each transaction slightly increases token price, ensuring price growth is organic and supply-sensitive
Example
Assume the Vault has:
x = 1,000 USDT
y = 1,000 $GGA
Then k = 1,000,000
A new user Advances 100 USDT:
x becomes 1,100
To keep k constant: y = k / x = 1,000,000 / 1,100 ≈ 909.09
So the user receives:
(1,000 - 909.09)*0.8 = 72.73 $GGA
Average price = 100 / 90.91 ≈ $1.375 per token
The next user would receive fewer tokens for the same Advance amount — demonstrating how the price naturally increases over time.
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