DEGENERATIVE FINANCE uGAS USER GUIDE
Hola Zombies! 🧟
We’re happy to share a visual guide on how to use Degenerative Finance!
This is an ELI5 handbook to simply show how to use all the functions of our Degenerative Finance site. Dive in below to learn how to:
- MINT + LP uGAS (and EARN UMA!)
- LONG uGAS
- SHORT uGAS
- MANAGE YOUR uGAS
- SETTLE uGAS (after purchasing)
- REDEEM uGAS (after minting)
Please note that our Degenerative Finance site is a work progress. We’ll update this guide as we develop our UI + incorporate new Degenerative features! For more in-depth insight into uGAS, please see our documentation page.
Our Degenerative Finance front-end allows you to mint uGAS and provide liquidity to the uGAS/ETH pool on Uniswap. Doing both will allow you to earn monthly UMA Rewards.
To begin, go to our uGAS site: https://degenerative.finance/assets/ugas
1. Connect Wallet
2. Select the uGAS Month
3. Enter amount of uGAS you want to Mint
4. You’ll need WETH to Mint. If needed, wrap your ETH with the table at the bottom.
5. Click on “Approve Token” to give Degenerative Finance permission to mint uGAS, and then click the button again to mint your uGAS!
Congratulations! You’ve minted uGAS!
To recap: “Approve Token” only approves the contract and gives permission to Degenerative Finance to deposit WETH and Mint uGAS. After approving, you need to click the button a second time to confirm the order to Mint uGAS.
You’ve done the hard part, now it’s time to Provide Liquidity in order to earn UMA Rewards.
6. Click on the LP/Trade Button and select LP
7. You’ll be re-directed to the Uniswap page. In Uniswap, input an equal amount of uGAS and ETH and confirm.
8. That’s it! You’ll now receive uGAS/ETH Uniswap Pool Tokens. Holding onto these tokens will make you eligible for UMA Rewards each month.
UMA Rewards will be airdropped each month to Mint + LP users proportionally to their share of the pool. Please note that you need to both Mint and LP in order to be eligible for rewards.
If you feel Ethererum gas prices will keep rising, you can trade uGAS and essentially long Ethererum gas prices.
To begin, go to our uGAS site: https://degenerative.finance/assets/ugas
1. Connect Wallet
2. Select the uGAS Month
3. Click on the LP/Trade Button and select Trade.
4. You’ll be re-directed to the Uniswap Swap page. Just swap your ETH to uGAS!
You now hold uGAS!
You can trade it again or simply hold it until the end of the month and let it settle at the median 30 day gas price.
If you feel Ethererum gas prices are too high and unsustainable, you have the option to short uGAS.
To begin, go to our uGAS site: https://degenerative.finance/assets/ugas
1. Connect Wallet
2. Select the uGAS Month
3. Enter amount of uGAS you want to Mint
4. You’ll need WETH to Mint. If needed, wrap your ETH with the table at the bottom.
5. Click on “Approve Token” to give Degenerative Finance permission to mint uGAS, and then click the button again to mint your uGAS!
Congratulations! You’ve minted uGAS!
You’ve done the hard part, now it’s time to trade your uGAS for ETH in order to short uGAS.
6. Click on the LP/Trade Button and select Trade.
7. You’ll be re-directed to the Uniswap Swap page. Sell your uGAS for ETH.
8. When uGAS prices drop, purchase your original amount of uGAS with ETH, or wait until the contract expires to withdraw your remaining ETH.
If you purchase uGAS at a lower price, you can now redeem your uGAS for your original collateral back and pocket the difference in gas prices as profit.
You also have the option to let the contract expire and withdraw your remaining ETH less the settled value of the uGas you sold
Managing your collateral is an imperative step in the process of minting uGAS.
1. If the price of ETH drops too low, or the price of uGAS rises too high, you’re at risk of getting liquidated. To prevent this, you can increase your “Collaterization Ratio” by selecting “Deposit,” adding WETH to your position, approving and confirming the transaction.
2. If you want to be more capital efficient, you can withdraw WETH up to the “Global Collaterization Ratio.” Select “Instant Withdraw” input desired amount of WETH, approve and confirm the transaction.
3. If you want to withdraw more WETH and go below the Global Collaterization Ratio, click on “Request Withdraw.”
This will initiate a 2 hour wait period to ensure that you do not withdraw below the “Minimum Collateral Ratio.”
4. Once the two hours have passed, you can click on “Withdraw” to withdraw WETH up to the Minimum Collaterization Ratio.
Please be cautious selecting this option as withdrawing up to the Minimum Collaterization Ratio exposes you to significant liquidation risk if the prices swing too much.
1. At the end of the month, if you purchased uGAS on Uniswap, you need to go through a “Settle” process to exchange your uGAS for ETH. Click on “Approve EMP to Settle.”
This will approve the EMP to spend your uGAS and return the WETH that you are owed. EMP stands for ExpiringMultiParty contract, UMA’s process of handling expiring synths.
After approving, click on “Settle” (same button as “Approve EMP to Settle”) to burn the uGAS and receive your WETH at the 30-day Median Gas Price.
1. If you minted uGAS, you need to go through a process called “Redeem” to swap your uGAS for your collateral back. Click on “Redeem,” enter the amount of uGAS you’d like to redeem, and then click on “Approve EMP.”
Once you approve the EMP (ExpiringMultiParty) to redeem your uGAS for WETH, the “Approve EMP” button turns into a “Redeem” button. Click that button again to confirm the redeem process and receive your WETH!
Thank you for taking the time to read through our Degenerative Finance User Guide. This page will be updated regularly as we work on improving our UI.
For more in-depth insight into uGAS, please see our documentation page.
If you have questions, please feel free to reach us on Discord!
