How Generis Protocol Works

Generis tokens are assets that move across the blockchain just as easily as other digital currencies but that are fully backed by Tether's coin reserves.

Core Mechanism

Generis tokens operate on a direct buy and refund model, ensuring every token is backed by reserves while enabling sustainable growth through dynamic pricing and interest distribution.

Direct Purchase

Users purchase Generis tokens directly from the protocol using the backing asset (e.g., XAUT for gXAUT, USDT for gUSDT). Each purchase adds to the reserve pool, maintaining the 100% backing guarantee.

  • Minimum purchase amounts ensure economic viability
  • Dynamic pricing adjusts based on backing ratio
  • No-slippage purchase even for large amounts

Direct Refund

gToken holders can refund their gTokens directly to the protocol and receive the backing asset at backing value. This mechanism ensures liquidity and maintains the peg to underlying reserves.

  • Minimum refund amounts ensure economic viability
  • Guaranteed backing value no-slippage refunds
  • No refund limits

Forced Growth Mechanism

Generis tokens include forced price growth mechanisimn, which systematically forces backing value per gToken to rise.

Usage Effect

Buy premiums (0.1%) and reserve fees (0.075%-0.15%) net positive gToken inflows. Burns on refunds enforce deflation (supply down → value up), with reserves stabilizing the curve. No external dependencies, purely internal. Every interaction where fees are taken (buys, transfers, and refunds) includes a reserve fee that allocates gTokens back to the contract's balance. This reserve fee removes gTokens from market circulation and returns them to the contract's balance, where they remain as part of the contract's token holdings. The forced growth occurs through the reduction of circulating supply (via burns and reserve accumulation) combined with stable or increasing backing reserves, not through active selling of reserve tokens.

Refund Effect

On refund, the burn fee permanently removes gTokens from circulation (up to 20% of total supply), while the reserve fee keeps tokens in the contract's balance, removing them from circulation. This combination of refunds (which pay out the backing assets), burning (which reduces total supply), and reserve fees (which remove tokens from circulation) ensures that the backing value per remaining gToken increases, creating a solid price floor that prevents downward manipulation and maintains backing value integrity. The reserve gTokens remain in the contract as part of its holdings and are sold back to the market based on demand. Refunded gTokens are always sold back to the market at higher price than they where refunded.