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Tokenomics & Ecosystem

by Grizzly Oct 9 2021

GRIZZLY HONEY ($GHNY) is the Utility and Governance token of Grizzly.fi and operates as the fuel to the whole Grizzly.fi
ecosystem. $GHNY tokens only get minted when performance happens on the platform and users claim rewards. By this unique
mechanism the supply of $GHNY will increase proportionally to the performance of the whole Grizzly.fi ecosystem thanks
to the dynamic honey creation.

 

Keywords:

Name:
GRIZZLY HONEY ($GHNY)
Token Style:
Utility & Governance
Max Supply:
None
Minting rate:
Dynamic (the higher the TVL, the more profits generated, the more $GHNY distributed)
Launch Price:
$1
Initial Liquidity Depth:
$1’000’000

 

Glossary:

Grizzlies
Users / Investors
Hives
Liquidity Pools
Honeypot
Staking Pool
DEX
Decentralized Exchange
Farming
Providing liquidity to a Hive (liquidity mining)
Staking
Freezing tokens to earn more tokens

 

Use Cases:

  • $GHNY can be collected for liquidity mining in our Hives.
  • $GHNY can be multiplied by staking it in the Honeypot.
  • $GHNY gives you the right to vote on important changes of the platform (for example assure healthy token
    dynamics, vote on new features etc.)
  • $GHNY can be earned by using our affiliate system.
  • $GHNY can be used as collateral to take out a loan (coming soon)
  • $GHNY can be used to participate in the NFT Case Openings. (coming soon)
  • $GHNY can be used to enter the upcoming raffles. (coming soon)

 

Profit Breakdown

Grizzly.fi currently offers three ways to earn money:

  • Hives (the Liquidity Pools involving stablecoins and single assets)
  • GHNY-BNB Hive (the Liquidity Pool of GHNY)
  • Honeypot (the GHNY staking pool)

 

Hives:

The Hives are the Liquidity Pools of the platforms Grizzly.fi aggregates (e.g. Pancakeswap, Belt Finance, etc.). Farming
Grizzlies can provide their capital/liquidity to DEXes which is then used to process trades. The farming Grizzly earns
the trading fees. Grizzly.fi currently only provides the opportunity to invest in stable coin and single asset Hives,
(e.g. BUSD-USDC or beltBTC) since they are not affected by impermanent loss.

When investing in one of our Hives, our smart contract (the Bees) auto-compounds your profits, thus giving you a higher
APY than on other DEXs and platforms.

In our Hives, we offer our Grizzlies three different Investment Strategies: The strategy determines what happens with
the generated rewards:

  • Stablecoin Strategy
  • Standard Strategy
  • Grizzly Strategy

With the Stablecoin Strategy, all rewards are used to increase the investment in the Hive. The Standard Strategy
distributes part of the rewards in $GHNY while the Grizzly Strategy focuses solely on accumulating as many $GHNY as
possible. Let’s explore them in detail:

 

Stable Strategy

This strategy is for Grizzlies who want to play it safe. It’s a great way to earn steady yields in any market situation.
But don’t expect crazy profits from this strategy. You don’t get $GHNY either.

  • 97% of the profits are automatically traded back into the two
    currencies of the Hive and re-invested, thus giving the Grizzly the benefit of the compound effect.
  • 3% of the generated profits go to the Grizzly.fi Team so they can
    further develop the platform and create new innovative features.

stable strategy GRIZZLY HONEY

 

Standard Strategy

This strategy is for Grizzlies who want to continuously increase their stable coin initial investment while also
profiting from the growth of the Grizzly.fi platform.

  • 70% of the profits are automatically traded back into the two
    currencies of the Hive and re-invested, thus giving the Grizzly the benefit of the compound effect.
  • 30% of the profits flow into the Dynamic Honey Creation (DHC) and are
    compensated with freshly minted $GHNY tokens.

standard strategy GRIZZLY HONEY

 

Dynamic Honey Creation

In order to understand the Dynamic Honey Creation, we would like to explain to you the Bee Efficiency Level first:

The Bee Efficiency Level determines how many new $GHNY get created per $BNB collected in the 30% Dynamic Honey Creation.
Let’s imagine the Bee Efficiency Level is 500, that means that per BNB ($500) which is collected, 500 GHNY tokens
($1) are given back to Grizzlies
. So at a starting price of $1 and a BNB price of $500 the farming Grizzlies
would exactly receive their 30% back in $GHNY which flow in the Dynamic Honey Creation.

If the token price increases (for example to $1.50) the Dynamic Honey Creation still mints the same number of tokens
which are now worth 50% more. This means the DHC actually gives back more value than collected in the DHC. 30% are
collected and 45% are given to the farming Grizzlies in $GHNY at a price of $1.50.

The Bee Efficiency Level is not set in stone but can be changed through the Governance voting system. The Grizzly.fi
community therefore votes on the emission level.

 

Stakers and Team Share:

Now we know how new $GHNY is created and given to Grizzlies. But what happens with the 30% which are not reinvested into
the Hive? Simple – the 30% collected are used to buy GHNY-BNB LP tokens. 6% of the GHNY-BNB LP tokens are sent to
the dev team to ensure steady growth of the project. Over time Grizzly.fi will become more and more decentralized and
the 6% fee will be reduced and also given back to GHNY stakers. 24% of the LP Tokens are then given to Grizzlies that
stake Grizzly Honey as rewards. When the staking Grizzly claims his rewards, the LP tokens are converted into $GHNY and
$BNB. This means Grizzlies staking $GHNY will receive BNB’s as well as more $GHNY as rewards.

Honey Flow:

standard strategy GRIZZLY HONEY

  1. A Grizzly invests in a Stablecoin Hive (e.g. USDC-BUSD on Pancakeswap)
  2. After some liquidity mining, rewards are generated (e.g. $1000 in CAKE)
  3. 70% of the CAKE’s are traded back into the currencies of the Hive and re-invested so even more profits are made
    (e.g. the invest is increased by $700)
  4. The investing Grizzly gets around 30% of his rewards compensated by the Dynamic Honey Creation.
    1. At a $GHNY price of $1.00 the investing Grizzly gets 300$.
    2. At a $GHNY price of $1.50 the investing Grizzly gets 450$.
    3. At a $GHNY price of $1.00 the DHC Safety Net intervenes. (Explained below)
  5. The remaining 30% in $CAKEs are given to the staking Grizzlies and the Team.
    1. 24% are given to the staking Grizzlies.
      (The $CAKE’s are traded to GHNY-BNB LP tokens to increase the $GHNY market depth. When the staking
      grizzlies claim their rewards, the LPs are traded back.)
      (The $GHNY for the LP tokens is bought on the open market therefore buy-side pressure is created and the
      price of $GHNY increases)
    2. 6% are given to the Grizzly.fi Team so they can further develop the platform.
      (This number can be decreased in the future when the development of the platform can be financed through
      traditional finance solution)

 

Dynamic Honey Creation Safety Net:

What happens when the BNB/GHNY ratio drops under the Bee Efficiency Level?

This is a very unlikely scenario but if this happens the Safety Net applies; The 24% don’t go to the staking Grizzlies
but are used to buy $GHNY on the open market to give back to the farming Grizzly. Additionally 6% extra tokens are
minted. This makes sure the $GHNY price always stays above a certain ratio (above the elected Bee Efficiency Level)
between BNB/GNHY.

 

Grizzly Strategy

This strategy is for the smart Grizzlies who understand that it is very beneficial, to farm as much $GHNY as possible,
especially in the early stage of the project.

  • 70% of the profits are being used to buy $GHNY on the open market, thus
    creating constant buy-side pressure and increasing the price of the token.
  • 30% of the profits are compensated with the Dynamic Honey Creation and
    also minted as $GHNY.

The key characteristic here is that all of the rewards are paid out in $GHNY. This $GHNY is then immediately staked in
the Honeypot where additional $GHNY and $BNB are paid out as rewards. These rewards are collected in the 30% Dynamic
Honey Creation by the farming Grizzlies who chose the Standard Strategy.

Grizzly strategy GRIZZLY HONEY

  1. A Grizzly invests in a Stablecoin Hive (e.g. USDC-BUSD on Pancakeswap)
  2. After some liquidity mining, rewards are generated (e.g. $1000 in
    $CAKE)
  3. 70% of the $CAKE are used to buy $GHNY on the open market and put into
    the Honeypot of the investing Grizzly.
  4. 30% of the rewards are compensated by the Dynamic Honey Creation and
    also put in the Honeypot of the investing Grizzly.
  5. The remaining 30% in $CAKEs are given to the staking Grizzlies and the
    Team.

 

 

Honeypot:

The Honeypot is the place where smart Grizzlies stake their $GHNY tokens to get more $GHNY and $BNB back in return. THE
APY of the Honeypot is depending on the performance of the Hives because 24% of the generated Hive rewards flow directly
to the staking Grizzlies in the Honeypot.

 

GHNY-BNB Hive:

This is the liquidity pool (Hive) of our platform token $GHNY. Grizzlies can fill this Hive and earn more $GHNY tokens.
Because the whole platform benefits from a great depth of this Hive, it gives the highest APY’s. Currently the only way
to reward Grizzlies that provide liquidity into this Hive is by freshly minting new $GHNY.

This will change as soon as there is a GHNY-BNB farm on Pancakeswap where users can earn $CAKE by providing liquidity.
Then, the $GHNY emission rate will drastically decrease and the Dynamic Honey Creation will fall into place.

Unlike the other Hives, this Hive has a higher APY but at the same time the possibility of impermanent loss. Make sure
you understand this mechanism before you invest.

 

Minting Contract:

Every 100 GHNY’s minted in the Dynamic Honey Creation, 22 tokens are minted additionally and sent to shareholders:

  • 5 tokens are given to the generous people that funded the development
    of the platform over the past 8 months.
  • 3 tokens go to the Advisors that helped with strategies, marketing
    efforts and overcoming other challenges.
  • 14 tokens go to the team that put everything on the line and worked
    24/7 to make crypto human friendly. Those tokens will be frozen for 1 year but can still be used in the
    governance votings of the community. The Team is here for the long run and will not sell off their tokens when
    it would damage the ecosystem.

 

Traditional Finance

Introduction

One of the most exciting things about the Grizzly.fi ecosystem is the Traditional Finance Solution and how it will
benefit the DeFi users.

The mission of Grizzly.fi is “Make DeFi accessible for everyone”. This will be achieved by making investing as easy as
possible, offering secure investment opportunities and optimizing the returns. This approach will get lots of people
involved in Grizzly.fi who were scared off to invest into DeFi due to its complexity. But how many people actually own
crypto? Crypto.com estimates that in 2021 a little over 100 Million people own cryptocurrencies. That’s about 1.25% of
the total population. Of those 100 Million people about 2 Million people are now invested in DeFi. With Grizzly.fi we
aim to increase this number. But that’s not making DeFi accessible for everyone right?

For us crypto enthusiasts, making 2x / 5x / 10x gains during a good year is nothing special anymore. But for a
traditional investor who simply buys stocks, bonds or real estate making 10% a year is literally a Jackpot! Investments
that pay out yields or dividends very rarely achieve a higher yield than 4-5%. Of course, 10% gains are possible when
investing in the stock market but the stock market can also bring you -10% in a year.

Stablecoin Liquidity Mining, in contrast, offers high returns, high liquidity and an easily minimizable risk so it’s
something people really want to invest in. But there is one problem… How should for example a 50 year old ordinary guy
who has no idea about crypto and can barely use a computer invest into Pancakeswap? Even some experienced crypto
enthusiasts are struggling with it. This is how the idea of launching a regulated Liquidity Mining “Hedge Fund” was
born.

The Grizzly Team is currently working day and night to bring exactly this to reality. This task has its own and very
unique challenges which can’t be solved by developers but experienced lawyers instead. Here in Crypto Valley of
Switzerland the Banking World and the Crypto World merge more and more together and we’re very proud to announce that
Grizzly.fi is already in close discussions with banks and financial institutions to bring the vision of a Liquidity
Mining Fund to life. This means that everyone with a bank account is able to invest into Grizzly.fi without knowing
anything about Crypto or DeFi.

The Special thing about the Fund is that The Crypto Community however will benefit most from this feature. All Honey
Tokens earned by Traditional Investors will automatically be burnt, reducing the supply even more. The Crypto Space is
about 1000x smaller than the Traditional Finance Market and this is why we believe that Grizzly.fi and the Honey Token
have an enormous potential in the near future.

 

Profit Breakdown:

  • 80% of the profits are being traded to fiat money and paid out on a monthly basis.
  • 10% of the profits used to buy $GHNY on the open market and then burned. Thus, reducing the circulating supply
    of $GHNY and increasing its price. Amazing news for all staking Grizzlies.
  • 10% of the profits go to the Grizzly.fi Team. As soon as the platform can be financed through this profit share,
    the 6% taken from the Standard and Grizzly Strategy are eliminated and also go to the staking Grizzlies.

Disclaimer: Because the Traditional Finance Solution is still a work in progress, things might change in the future.

 

Frequently Asked Questions:

When and Where can I buy Grizzly Honey?

$GHNY can be bought at the point of launch of the platform. Whether we launch on a DEX (Pancakeswap) or a CEX (for example kukoin) will be announced soon. 

 

Why is there no max supply?

Nowadays, everyone asks for more burning mechanisms and a max supply. And we get why – it is tempting to acquire something early when you know it has increased scarcity over time.  Bitcoin for example, whose primary use case is the storage of wealth, has a maximum supply of 21 Million Bitcoins with a decreasing supply because of the halving.

However, with tokens that fuel an ecosystem this is different. Lets look at Autofarm and their $AUTO token for example. They had a linear minting structure that minted tokens until October 2021. What happened then? Within just a few of not minting and distributing tokens, their platform TVL halved, because the return (which was influenced by minting), was no longer attractive. Their fuel has run out.

Because we are very long term orientated, we don’t want to introduce a platform with a pre-programmed death sentence. We will rather introduce more burning mechanisms in the future that create a balance to the token, than add a maximum supply.

 

Will there be a Pre-Sale where I can buy tokens at a better price?

No. There will be no discounted pre-sale because this attracts many short term oriented people  that want to make a quick profit. Furthermore, we want to avoid the ICO Reversal pattern (quick pump with a dump below launch price). 

We believe that a fair launch profits everybody more in the long run.

Nevertheless, if we decide to launch on a DEX, we will do an ILO with the well known company DuckDao and raise around 500’000$ in BUSD/BNB which will go directly in the initial liquidity pool.The according counterpart of 500’000 GHNYs will be minted.

 

How big will the GHNY – BNB Pool be?

Like mentioned in the previous question,we will start with an initial liquidity pool with a depth of 1Million. This consists of 500k in BNB or BUSD and 500k in GRIZZLY HONEY.

 

At what market cap will GHNY start?

It will start at 510’000 market cap. 

  • 500’000 in the initial liquidity pool BNB-GHNY
  • 10’000 for the winners of the giveaway on www.grizzly.fi/win

The dev team or any other third party will not hold any tokens at the beginning of the project.

 

 

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