Gorilla Hodl — Hedge Fund Safely

4 min readDec 20, 2020

Tools to curb volatility

Volatility is a feature of cryptocurrency markets. Sharp price hikes and changes in trading volumes are normal for it. Different teams have tried to catch volatility by coming up with different market mechanisms.

Token burning and elastic token supply are among them. At first glance, these tools can help regulate prices by managing the law of supply and demand. But there are no proper criteria to avoid market emotion.

For an elastic supply, the rate of supply change should be slower than the movement of demand. The price will rise more than the decline in supply. And this can lead to losses for investors.

Gorilla Hodl Solution

The goal of Gorilla Hodl is to present so-called emotional oracles that reflect the emotional state of the market and create a token, which can’t go down. The Gorilla Hodl anti-panic token (GH) does some of the work of a professional trader for the token owner and reflects the market movement in its price.

Oracles determine the price of the token, building supply and demand on it. The oracle also calculates the number of commissions that are used for trading.

Other decentralized risk hedging tools need the trader to be able to predict price movements. The GH reflects both of these strategies. Anti-FUD tokens are blocked when the cryptocurrency exchange rate falls and activated for growth when the market rises. Thus, the Gorilla Hodl anti-panic token is an insurance mechanism against a market correction. This self-locking mechanism protects token liquidity from removal during a bear market.

GH token algorithm

The hourly price of Ethereum affects changes in the price of GH. If there is a drop of price more than 1% per hour, anti-panic token transfers are blocked. If the price increases by 0.3% per hour, sending tokens is unblocked. The hourly lock period helps prevent the price drops, while the percentage needed for unlocking is lower and allows the token to be in the unlocked state more often.

Estimated growth of the token price due to hedging using self-locking mechanisms. The red line shows the expected price movement of the token without a self-locking mechanism. The green line shows the expected price movement of the selflocking token. A slight downward price movement in front of the block reflects the lag of the locking mechanism.

Ethereum price from Chainlink oracles and time oracles are used to manage the blocking of GH tokens. Oracle is also connected on the Google server, takes the price from Binance and sends it to the token smart contract.

Oracles used:

BTC-Oracle
Basket of oracles BTC / ETH
YFI Ecosystem Based Oracles (YFI, COVER, KEEP3r)
TOP 100 ERC 20 tokens based on oracle index
Oracle Based on DeFi Pulse Index
Oracle Using Volume / Liquidity Ratio for ETH
Oracle DeFi TVL
Oracle Based on Fear / Greed Index
Oracles, based on complex data analysis with machine learning
A combination of the above oracles

Distribution of funds

15% — Team, investors, genesis LPs, marketing

13% — Ecosystem Development Fund, managed by community

2% — Advisors

70% — Goes to the market through the liquidity extraction program

All GH tokens will be released to the market without whitelists and presales. There will be an announcement in 3 hours after listing on Uniswap. The total token offer will be 100,000 with a starting price of 13.7 USD.

Staking

Genesis LP staking pool on Uniswap: GH/ETH

The pools will be activated 48 hours after genesis.

Tokenomics

Total supply of tokens: 100,000

5% of tokens will be immediately distributed to pool creators / early liquidity providers.

During the first day, 5% of the tokens will be distributed, and during the first week, 15% of the tokens, while 25% of the tokens will be distributed during the first month.

Liquidity mining and liquidity generation event

Total number of epochs: 8

Epochs duration:

Epoch 1 — Day 1
Epoch 2 — One week
Epoch 3, 4 — One week
Epoch 5, 6, 7, 8 — Two weeks

Epochs liquidity mining, GH tokens:

Epoch 1–5000
Epoch 2–15 000
Epoch 3, 4, 5 and 6–10 000 GH each
Epoch 7–8–5000 GH each

Starting from Epoch 6, ETH/GH pool is rewarded by GH2 token, which is bound to BTC price.

Final words

Gorilla Hodl will allow market participants to curb the volatility of the cryptocurrency market and provide an effective tool for hedging risks. More information you can get from Gorilla Hodl Whitepaper.

Stay tuned for upcoming events and join Gorilla Hodl Community on Telegram.

Webpage: https://gorillahodl.finance/
Twitter: https://twitter.com/gorilla_hodl
Telegram Announcement Channel: https://t.me/gorillahodl
Telegram Chat: https://t.me/gorillahodlchat
Discord Channel: https://discord.gg/j9P35bzSew