Note pronounced gusto with an Italian accent - gù·sto
GooStew optimizes goo production for its users. Users deposit gobblers and/or goo and receive more goo than they would have received from goo inflation. The simplest example is pairing a gobbler without goo with a user who does not own a gobbler but has lots of goo; or a gobbler with a high emission multiple but a low goo tank with another gobbler with a low emission multiple but a high goo tank. Combined, the goo production will be higher than the sum of their individual goo productions.
It turns out that providing your gobblers and goo to the protocol is always superior to producing goo on your own, no matter your gobbler / goo ratio. Intuitively, this is because putting all goo into a single pot and optimally distributing this goo over all gobblers (according to their different emission multiples) leads to a higher total goo production than the sum of several smaller non-optimized gobbler & goo pots.
GooStew is therefore a no-loss goo production protocol. In the worst case, users receive as much goo as they would have produced on their own, in the average case they vastly improve their goo production. The additional goo produced by the protocol is distributed to users according to their individual contributions. See the technical paper for more info on how contributions are measured.
ibGoo
: When depositing any goo, the protocol issues inflation-bearing goo tokens which are a claim on the ever-increasing total goo pot. Market making goo is tough because the total goo supply inflates quadratically and goo LP positions don't earn any of the goo inflation. We see ibGoo
as a better choice for providing goo liquidity.