GigaStrat is an on-chain system that blends lending and borrowing with a treasury strategy focused on accumulating ETH. The core contract is the DAOLoanManager, which creates separate loan contracts called SpotIOULoans. Each SpotIOULoan mints IOU tokens for lenders, while the manager simultaneously issues a governance token called GG, backed by the protocol’s ETH treasury.

How GigaStrat Works

A SpotIOULoan accepts stablecoins (like USDC) from lenders in exchange for newly minted IOU tokens. These IOU tokens track the lender’s share of that specific loan. The DAOLoanManager draws down stablecoins from the funded loan, swaps them for ETH, and then repays the loan in installments by selling small amounts of ETH. Over time, lenders can either redeem IOUs for principal and interest or convert these IOUs into GG tokens.

GigaStrat’s treasury accumulates ETH when a loan’s repayments are complete. Any ETH remaining after loan obligations are satisfied stays in the treasury, which benefits holders of the GG token. If the price of ETH increases, the treasury’s value grows, enhancing the backing of each GG token.

Fully On-Chain and Decentralized

All core actions happen through verified smart contracts, removing any reliance on centralized actors. The manager sets up loans, draws down funds, executes trades, and repays lenders, all according to the code’s logic. Participants see precisely how much ETH the system holds and exactly when trades occur. Once a loan is funded, the manager’s established protocol ensures that selling portions of ETH for repayment takes place automatically, gradually returning principal plus interest to lenders. No single party can divert or mismanage the treasury since every transaction is enforced at the contract level and can be reviewed on-chain.

Funding a Loan and Getting IOUs

Funding happens when you send stablecoins to a SpotIOULoan contract. You receive IOU tokens in return. These IOUs represent your share of the loan’s principal and will allow you to claim repayment plus interest as the manager sells ETH. If you simply want your principal back (plus accrued interest), redeeming IOUs will give you stablecoins. If you want exposure to the treasury’s ETH, you can swap your IOUs for GG tokens instead.

On-Demand Loan Deployment

The manager contract can start fresh SpotIOULoans at any point, allowing GigaStrat to continually raise new capital to buy ETH. As soon as a loan reaches its funding goal, the manager draws down the stablecoins and acquires ETH through an on-chain swap. This cycle repeats, with each new SpotIOULoan following the same pattern of raising capital, purchasing ETH, and repaying lenders in scheduled increments. Because the manager can deploy loans whenever market conditions are favorable or there is a desire to expand the treasury, GigaStrat can keep accumulating ETH even as previous loans wind down.

Swapping IOUs for GG

IOU holders can transform their lender position into ownership of the broader system by swapping IOUs for GG. This conversion pivots you from earning interest on a single loan to a more general stake in the protocol’s growing ETH treasury. The conversion rate is set per loan. After swapping, you hold GG tokens, which do not expire or require redemption like IOUs do.

Holding GG and Burning for ETH

GG represents a fraction of the entire treasury. Its value depends on how effectively the manager invests in ETH and how many outstanding GG tokens exist. If you hold GG and want to exit, burning GG returns your proportional share of the treasury’s ETH. This creates a liquidity mechanism and ensures that every GG token is backed by real assets in the treasury.

Risks and Rewards

The system relies on ETH price movement. If ETH appreciates, the treasury gains, and GG tokens become more valuable. If ETH declines significantly, the treasury may struggle to cover loan repayments, and GG tokens may lose value. GigaStrat also depends on stablecoins and DeFi components (like Uniswap swaps), which carry their own technical risks.

💰 Draw Down & Buy draws the funded USDC and immediately swaps for ETH.

💵 Repay Loan sells ETH to repay ~50% of the total owed principal + interest.

💱 Redeem IOUs & Swap allows the manager to redeem any leftover IOUs in the contract and convert them into ETH for the treasury after the loan is fully repaid.

Summary

GigaStrat allows lenders to earn interest by funding loans while giving them the choice to convert their positions into a stake in the protocol’s ETH-centric treasury. It combines traditional lending mechanics (IOUs, repayment schedules) with a treasury-backed governance token (GG), aiming to capture the upside of ETH in a transparent, on-chain manner. Lenders who swap into GG become co-owners of the protocol. GG holders can burn their tokens to withdraw ETH if they ever want to exit.