๐ŸงฉXolotl

When you stake AxO Token in Xolotl pool, you get xLT (Xolotl, hence the name) in return as proof of your deposit. xLT is itself a regular token, just like AxO. The amount of xLT you get back is based on the amount of AxO already in the pool and the current total supply of xLT. This ratio will be displayed on the pool and starts at 1 xLT = 1 AxO and will continuously go up over time thanks to our buybacks mechanism.

Example:

Chayce is the first to deposit in the xLT pool, they deposit 10 AxO and receive 10 xLT as the initial ratio is 1:1

Next day, trade fees are used to buyback AxO and sent to the xLT pool, now there is 20 xLT. Since there are 20 AxO in the contract and 10 xLT is the total supply, the ratio is now 1 xLT: 2 AxO and Chayce can redeem his 10 xLT for the 20 AxO at any time, based on that ratio. But letโ€™s say they donโ€™t do that.

Now, Adam deposits 10 AxO to the pool and since the ratio is now 1 : 2, they get half of their deposit as xLT, which would be 5 xLT. Now the total pool is 30 AxO and total supply of xLT is 15 (maintaining the ratio).

The ratio only changes as Fees are used to buyback AxO which is then sent to the pool and split equally among all xLT holders, because each xLT becomes worth more AxO (the share of AxO went up).

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