āØxSYNTH Token
Synthswap's Escrowed Token
xSYNTH token address: 0x01CC6b33c63CeE896521D63451896C14D42D05Ea
xSYNTH is a protocol profit-sharing and governance token that is non-transferable and escrowed. It corresponds to staked SYNTH and can be obtained through on-the-spot conversion from SYNTH tokens or as a Farming Reward in our Yield farms.
Ratio for Conversion SYNTH --> xSYNTH is always 1:1
Conversion xSYNTH --> SYNTH is vested! Vesting starts after the redeeming process is triggered manually by the user. More info: Vesting.
Utility
The primary use case for xSYNTH is to enable staking for various purposes. The process involves staking xSYNTH into the token contract and assigning the deposited amount to a specific staking program on our DEX. This allows for access to a variety of benefits (Sharing Protocol Profits, Governance, Launchpad Allocation).
Sharing Protocol Profits
By staking xSYNTH into Earn Profits, you are committing to a profit-sharing model and will begin earning rewards in the form of xSynth and the Current Cycle Pair. This pair changes every month, with a new one introduced at the start of each cycle. For instance, in April, you will receive rewards in the form of ETH/USDC + xSYNTH, while the next month, the Cycle Pair will change to BTC/USDC + xSYNTH.
Launchpad Allocation
xSYNTH holders stand to benefit in another way on our Launchpad, where you will have the opportunity to increase your allocation by staking your xSYNTH tokens. This staking mechanism will allow you to increase your chances of obtaining an allocation in our initial projects. We will announce the lock period for staking your tokens to earn a larger Allocation when we release details on the first projects that will be hosted on our Launchpad.
Governance
As a community DEX, our aim is to empower our users, and as such, we plan to implement governance voting for all major changes on the platform. Holding xSYNTH will also confer benefits in terms of participating in the decision-making processes of Synthswap, as it will serve as the voting fuel. The greater the amount of xSYNTH you hold, the greater the power you will wield.
Vesting
xSYNTH can be converted back to SYNTH after a vesting duration, which is selected by the user in the redeeming process.
The full vesting duration is 180 days. This means, that only after the 180 days have expired, you will be able to convert 100% of xSYNTH back to SYNTH.
You can also convert xSYNTH back to SYNTH prematurely, starting from the minimum vesting duration of 14 days. If you decide to convert xSYNTH back to SYNTH after 14 days, you will get 50% of SYNTH back. The remaining SYNTH will be burned!
Minimum vesting duration - 14 days (50%)
Full vesting duration - 180 days (100%)
Examples for different intervals
a) 0-14 days
You cannot convert xSYNTH to SYNTH.
b) 14-180 days
Unlock percentage after N days:
The remaining difference is burned!
Example:
After 14 days, unlock percentage will be 50%
After 30 days, unlock percentage will be 54.8%
After 180 days, unlock percentage will be 100%
c) After 180 days
Full unlock, you get 100% of SYNTH tokens back.
Good to Know
You can cancel the redeem at any point and 100% of xSYNTH will be returned to you.
You need to wait the whole redeem period in order to get SYNTH tokens.
Meanwhile you are redeeming, you are still earning in Profit-Sharing program with 50% of your xSYNTH amount or 75% of your xSYNTH amount if you've selected maximum amount of days.
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