XIO Commits 25M Tokens to Liquidity Program (XLP) | Rewards Calculator + Instructions

Zachary Dash
Dec 14, 2019 · 7 min read

The XIO Foundation has committed to distribute 25,000,000 XIO Tokens throughout the next decade to Citizens who support the XIO Liquidity Program (XLP). The rest of the article will breakdown what it is and how it works.

We also made a pretty nifty calculator to estimate how much XIO you can earn by Staking into the XLP! Try it below. To be eligible for rewards, you must (i) Whitelist your ETH Address (ii) have an active Stake for at least one mont (iii) Stake a minimum of one ETH.


Overview

What are the Rates?

In the top half, you will find the Base Rates, including the minimum and maximum to expect (monthly and yearly). Additionally, note that these Base Rates will drop over time as the XLP Fund decreases.

In the bottom half, you see the Multiplier Rates. Your Multiplier can be calculated by knowing how much ETH is in the Pool and how many months your Stake into the XLP has been active.


What is New to the XLP?

  1. Thresholds for Rate Changes:

During the original pool, the more ETH in the pool, the less the Rewards Rate for all participants would be. In the XLP, the Threshold for rate reductions is based on Total XIO Remaining in the XLP Fund (Starting at 25,000,000 XIO)

Logic: The reason for this is to create an infinitely scalable distribution system. As the amount of XIO available is decreasing, so do the rates. This goes down until the rates ease to the point of zero (much like the Bitcoin distribution rate). This was not possible in the previous ETH-threshold system.

2. Multiplier for Rewards:

In the original pool, “bonuses” were earned based on how long you keep your XIO in Uniswap. This is still the case with the XLP, but we created a simplified bracket and name (Multiplier) to track everything.

Logic: This Multiplier offers additional rewards to Citizens when (i) low amounts of ETH in the pool and (ii) keeping your XIO in the pool for extended amounts of time.

If at any time you remove any amount of tokens (XIO or ETH) from Uniswap and/or through your earned Rewards, your Multiplier will be reset to zero the next time you choose to Stake.


Stake Your XIO in Three Steps!

Step One

Step Two

  • An equivalent amount of XIO will auto-populate.
  • Click “Add Liquidity” and click “Confirm”

There is a chance you must “Unlock” the ETH or XIO during this process. This is normal and expected.

Step Three

  • Click “Remove Liquidity”
  • Enter XIO Token Address
  • Click on your “Balance”
  • Click “Remove Liquidity” then “Confirm”

Example Rewards

[Base Rate * Multiplier * Months Active * Total XIO Staked]

Example One:

  • There is 90 ETH in the Uniswap Pool.
  • You add 10,000 XIO into the XLP on December 5th.
  • You become eligible for rewards on January 5th.
  • You decide to Withdraw on January 22nd

This means:

  • Your base rate is 10% (because there is 20–25M in the XLP Fund)
  • You had an active XIO Pool for 1 Month
  • You don’t have a multiplier (because you have only had an active Stake for one month)
  • You would receive 1000 XIO upon Withdraw

[Base Rate * Multiplier * Months Active * Total XIO Staked]

[ 10% * 1 * 1 * 10,000 ] = 1000

Example Two:

  • There is 1005 ETH in the Uniswap Pool.
  • You add 15,000 XIO into the XLP on April 13th, 2020.
  • You become eligible for rewards after one month (May 13th)
  • You decide to Withdraw on April 13th, 2021.

This means:

  • Your base rate is 2.5% (because there is 10–15M in the XLP Fund)
  • Your multiplier is 2.6x (because there is 1000–10,000 ETH in Uniswap + your pool has been active 12 months)
  • You would receive 11,700 XIO upon Withdraw

[Base Rate * Multiplier * Months Active * Total XIO Staked]

[ 2.5% * 2.6 * 12 * 15,000 ] = 11,700 XIO

Important Reminder


FAQ

What if the price of XIO or ETH Changes?

It is important to know that the ratio of your ETH:XIO can fluctuate while participating in Uniswap. If there is a large increase in demand for ETH, your stake ratio may see an increase in XIO.

This is also true in the opposite direction. If there is an increase in demand for XIO, your stake ratio may see an increase in ETH.

However, no matter the increase or decrease of demand for XIO/ETH, you will always be able to withdraw a proportionate amount of the pool that you represent. For a more in-depth article on how Uniswap Works, go here.

How is the Price on Uniswap Calculated?

XIO Price = Total ETH in the Pool / Total XIO in the Pool

Is Uniswap Safe?

That said, Uniswap it has over $23.7M currently locked into its smart contract and used across the industry as a liquidity leader. It is a technology built on a smart contract with no central authority.

“The Uniswap code base was high quality, thoroughly commented, and we were impressed with the audibility of the Vyper language.”

Here is a massive security audit performed by ConsenSys.

When Can I Withdraw?

If you don’t submit your Withdraw Form before the 10th, you will need to wait until the next month of distributions.

What if the Threshold or Multiplier Rate Changes During my Stake?

For example, if half of your Stake is with a Base Rate at 10% and half of your Stake is at a Base Rate of 5%, you will receive rewards based at a 7.5%

What are the Requirements to be Eligible?

What if I Stake more XIO when I have an Active Pool?


Every social channel you would ever need: https://linktr.ee/xionetwork

XIO Network

Launching Ideas into the Decentralized World

Zachary Dash

Written by

Founder of xio.network + bombtoken.com + zacharydash.com + clover.io + oceans.capital + everkind.life

XIO Network

Launching Ideas into the Decentralized World

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