XENIFY: Burn To Earn ETH 🔥

Learn how you can earn daily ETH rewards by burning XEN or YSL!

XENIFY — The Nexus of Innovation & Reward, Effortless Cross-Chain Swapping, and Community-Driven Expansion!

Welcome to this 5-minute guide, where we’ll answer all your questions about the Xenify’s Burn Auction on Arbitrum, everything from how the burn fee formula dishes out discounts to the amount of XEN you’ll need to participate. Ready to earn ETH Rewards? Let’s dive right in! 🚀

1️⃣ XNF: How’s It Minted?

Before we get into all the nitty-gritty details of the Burn Auction, let’s take a quick look at how XNF tokens are minted. Every 24 hours, our protocol mints a portion of XNF’s capped 22.6 mil supply, like a 24-hour token bakery 🥐. These newly minted tokens are exclusively distributed to those that participate in any of three daily auctions:

1. 🔥 Burn Auction (50%)— 10,000 XNF will be distributed among users who either burn vXEN or YSL during the cycle.
2. 💸 Native Auction (45%) — 9,000 XNF will be locked and distributed as veXNF (an NFT that represents the locked XNF and earns ETH rewards) among users that contribute ETH during the cycle.
3. 🔀Swap Auction (5%) — 1,000 XNF will locked and distributed as veXNF among those who perform eligible Arbitrum based token swaps on Xenify during the cycle.

At launch, the daily reward pool will kick off at 20,000 XNF tokens (this will decrease by 50% at each halving event). Unlike the veXNF distributed among participants of the Swap & Native Auction’s — 100% of the XNF that is distributed to burn auction participants will be unlocked. This means, you’re free to trade it instantly or lock it to earn ETH rewards!

2️⃣ How Can I Join The Arbitrum Burn Auction?

Participating is a breeze — grab your XEN or YSL tokens, and ensure you’ve got some ETH to cover the mandatory Burn Fee. If XEN is your token of choice, there’s an extra step involved of acquiring vXEN — a virtual version of XEN that bridges the gap by enabling you to participate in Xenify’s Multi-Chain Burn Auctions. For instance, if you hold bXEN on BNB Chain but want to participate in the Arbitrum burn auction, simply burn your bXEN for vXEN, and voila! You’re now ready to join Xenify’s Burn Auction on Arbitrum, even though native XEN tokens don’t exist on that chain 🤩

• 🔸Option 1 — Burn vXEN: To acquire vXEN you’ll first need to burn your XEN for vXEN. When you burn your XEN, 100% of the tokens will be burnt, and your address will be captured in the burn record for X1. Once you have your vXEN tokens, you can simply burn it to participate in the Burn Auction. Keep in mind you’ll need to burn a minimum of one batch, with one batch of vXEN being equivalent to 10 million vXEN.
• 🔸Option 2 — Burn YSL: If you hold YSL, you can simply burn your tokens to participate in the Burn Auction. At the end of the cycle you’ll receive XNF tokens based on the amount of batches you burned during the cycle. Similar to vXEN, you’ll need to burn a minimum of one batch to participate, equivalent to 0.01 YSL.

🔥 At the end of each cycle you’ll receive XNF tokens based on the amount of vXEN and/or YSL batches you burn during the cycle.

3️⃣ XEN for vXEN: What’s the Conversion Rate?

The amount of XEN you’ll need to burn to acquire one batch of vXEN all depends on the version that you hold. Ethereum and Optimism have a simple 1:1 conversion rate. But for XEN from other chains, you’ll need to refer to the fixed conversion rates to determine how much you’d need for 1 vXEN batch:

• Ethereum (1 XEN = 1 vXEN): 1 Batch = 10 mil XEN
• Optimism (1 opXEN = 1 vXEN): 1 Batch = 10 mil opXEN
• Avalanche (134 aXEN = 1 vXEN): 1 Batch = 1.34 bil aXEN
• Base (134 cbXEN = 1 vXEN): 1 Batch = 1.34 bil cbXEN
• BNB Chain (200 bXEN = 1 vXEN): 1 Batch = 2 bil bXEN
• Polygon (334 mXEN = 1 vXEN): 1 Batch = 3.34 bil mXEN
• Moonbeam (567 mbXEN = 1 vXEN): 1 Batch = 5.67 bil mbXEN
• Fantom (667 fmXEN = 1 vXEN): 1 Batch = 6.67 bil fmXEN
• OKX (680 okXEN = 1 vXEN): 1 Batch = 6.80 bil OKXEN

For example, if you’ve got 10 million XEN on Optimism, that’s enough for 1 vXEN batch to join the Burn Auction. However, if you hold XEN on Avalanche you would need 1.34 billion aXEN to secure 1 vXEN batch.

4️⃣ Calculating The Burn Fee: The Deets!

The Burn Fee formula has been designed to provide fair discounts to those who participate early and/or burn more batches during a cycle. It incorporates two time-weighted coefficients:

⏱️ Time Coefficient (TC) — provides a discount based on when you burn tokens within the 24-hour cycle. The earlier you participate, the higher the discount.

📦 Batch Coefficient (BC) — provides a discount based on the number of batches you burn. The more batches you burn, the higher the discount.

TC starts at 50% and increases incrementally to 100% over 24 hours, while BC starts at 0.00005 and decreases incrementally to 0 over 20 hours. As a result, you’ll not benefit from any batch discount if you burn during the last four hours of the cycle. By factoring in these time-weighted coefficients, the Burn Fee calculation aims to curb unfair practices and provide discounts in a fair way that rewards larger, earlier burns. The full Burn Fee formula is:

• Burn Fee = (TC x Total Batch Value) x (1 — (Batches Burned x BC))

⏰ If you burn 10,000 batches within the very first hour, you qualify for TC’s maximum 50% discount, plus BC’s full 0.00005 batch discount — totalling a 75% discount off the standard Burn Fee!

5️⃣ ETH Rewards: How Do I Get ‘Em?

After securing your freshly minted XNF from the Burn Auction, you can either hang on to them, swap them on Xenify for other tokens, or lock them up to enjoy daily ETH rewards 🚀

If you choose to lock your XNF, you’ll receive veXNF in exchange. This NFT will represent your locked XNF position and keep track of its earning power. The longer you lock your XNF, the greater your veXNF earning power. The earning power of your locked XNF will diminish linearly over a decay schedule, determined by your selected lock period, until it hits zero, at which point you will stop earning ETH rewards.

Now, let’s talk about the decay schedule — it’s like a countdown timer, but for your earning power. The longer you lock, the longer the countdown. Lock for a year, and you’ll earn ETH rewards over 60 days. Lock for a week? Well, that’s only one day of ETH rewards. To maintain or increase your earning power, you can always add more XNF tokens to your veXNF position or extend your lock duration as needed. Keep in mind that the amount of rewards you receive at the end of each cycle depends on your share of the total earning power of all veXNF holders. The greater the amount of XNF you lock and the higher your earning power, the more substantial your ETH rewards!

💫 And there you have it — a quick overview of Xenify’s Multi-Chain Burn Auction!

With unique tokenomics, powerful cross-chain swapping capabilities, and an equitable, community-driven approach, Xenify is the ultimate choice for anyone looking to simplify the cross-chain swap process while maximising their earning potential. Keep in mind, this is merely a 5-minute snapshot, so don’t forget to dive deeper into the Xenify Litepaper for a more comprehensive understanding!

Bonus Tips & Tricks

💡Mastering the XNF Liquidity Black Hole: Before hitting the sell button on your XNF, it’s wise to grasp the dynamics behind the XNF Liquidity Black Hole. Here’s the lowdown: While the protocol can buy XNF for the automated buy-and-burn, users won’t be able to buy XNF from the protocol-owned liquidity pool — only sell XNF. This one-way street means that every time someone sells XNF through our protocol-owned liquidity pool, those tokens are removed from circulation, creating a “black hole” effect that amps up the scarcity of XNF.

⚡ Early Birds Catch Lower Burn Fees: Want the secret sauce for the best burn auction returns? Hit it fast and hard early in the cycle! Early birds enjoy the benefits of both the Time Coefficient (TC) and Batch Coefficient (BC), unlocking substantial burn fee discounts when burning vXEN or YSL. By simply burning batches in the initial hour, you’re granted a 50% discount thanks to the TC. Aim higher with 10,000 batches within this timeframe, and you’ll hit an impressive 75% discount, courtesy of the BC. The longer you wait, the more you pay — it’s the classic case of the early bird getting the juiciest discount!

♻️ Recycle ETH Rewards for Fee-Free XNF Acquisition & More: Opting to recycle your ETH rewards is a smart move, as it not only helps you side-step the 25% claim fee but also enables you to grow your XNF position and earn exclusive ETH rewards. How? Your full rewards balance automatically joins the daily burn auction, with no vXEN or YSL required. The protocol even covers burn fees out of your recycled rewards. This means you’re effectively participating in the burn auction without providing any vXEN, YSL, or ETH for the burn fees! And that’s not all — by recycling your rewards in the first hour of the cycle you’ll also be included in an exclusive reward distribution of ETH generated from the platforms claim fees!

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