xToken
Published in

xToken

xLetter 3

In this edition of the xLetter, we announce xToken 2.0, xToken goes L2, CitaDAO brings real estate on-chain with xToken’s help, and we discuss the future of governance.

xToken 1.0 → xToken 2.0?!

Since we launched in summer 2020, we’ve been offering set-and-forget native staking strategies to our community. These were novel products providing real value to our users, and many other projects have adapted our approach within their own ecosystems.

More recently, we’ve added our line of Uniswap V3 liquidity strategies (xU3LP), which has provided strong low-risk returns to our users, with minimal impermanent loss.

Over time, we realized that our native staking strategies were both time-intensive and expensive to maintain. Building on top of nimble protocols requires constant attention and vigilance. We’ve also realized that our liquidity strategies, while highly successful, can sometimes be intimidating or overly complex.

Owing to these factors, we’ve decided to sunset our native staking strategies in Q1. Additionally, we will be repackaging our liquidity strategies into a more seamless experience.

But our biggest xToken 2.0 product initiative is xToken Terminal, our permissionless capital markets platform. In February, we’ll be going live with our first Terminal feature, a permissionless liquidity mining platform where projects will be able to deploy incentivized Uniswap V3 pools with any price range, rewards token/duration and vesting configuration. All in a few easy clicks.

Equipped with just a web3 wallet and an internet connection, Terminal gives every builder the tools necessary to be their own web3 CFO & investment banker with minimal friction and maximum impact.

You can read the full vision for xToken 2.0 here.

Arbitrum Launch

With gas prices on Ethereum at elevated levels and with L2s like Arbitrum developing quickly, we thought it was wise for xToken to launch some of our newest products on a higher throughput, lower cost network. We elected to be an early adopter of Arbitrum, because it provides investors of all sizes access to sustainable yield and other DeFi services.

A few weeks ago, we launched a suite of products that demonstrated the versatility of the xToken platform and the power of L2s to support on-chain activity that is no longer viable on mainnet.

The launch included xLend, xAssetLev, and an exclusive NFT experience that allowed participants to enter a raffle with some juicy prizes.

Keep reading for more details and stay tuned for more updates!

xLend

Our lending protocol had been talked about in our community with hopeful anticipation for quite some time and we’re proud to say the rollout has been a success.

LPs have provided a little more than $1.2 million USDC to the borrowing pool and there has been ~$100,000 in notional loan volume. With interest rates sitting around 3%, borrowers currently have access to cheap collateralized USDC loans. Couple these cheap rates with low gas fees on Arbitrum, and xLend is a very attractive option to put assets to work at very low costs.

We are currently working towards a second wave of asset listings on L2. Drop us a note in the #lend channel in our Discord if you’d like to suggest an asset to include!

There are currently about 6 weeks left on our initial incentives program for lenders on xToken Lending. Participate at xtoken.market.

xAssetLev

In conjunction with xLend, we launched our first leveraged strategies on Arbitrum: xETH3x & xBTC3x. These leveraged strategies carry no risk of liquidation, as we use our own internal lending solution. This removes a major external dependency, which we believe makes the product safer. Of course, these are still highly experimental leverage products and users should be aware of the risks.

Stay tuned for a second wave of leveraged strategies in Q1 2022! Once we’re live with the second wave, we’ll be sponsoring the Up-Only Trading Contest where xToken community members will be able to show their trading skills for a chance to earn some juicy prizes. The only caveat: you can only be levered long.

We’ll announce more details in the not too distant future.

NFT Drop

As part of our launch on Arbitrum, we commissioned BingoBongoPlinkoPlonko (give his new Twitter a follow!) to create an xToken themed GM/GA/GN/WAGMI NFT set. We whitelisted about 75,000 addresses for a free airdrop of one item in the set and the ability to mint the others by participating in the xToken Arbitrum launch.

All NFTs in the set are very “rare,” generated via 1000+ different unique properties. There are 4000 items in each of the GM, GA and GN sets and 500 total in the WAGMI set. We have already announced the winners of the first raffle (for those who collected the GM/GA/GN components of the et), but the NFTs are still mintable and we’re working towards integrating them in other parts of our ecosystem. Make sure to mint!

gm
(ga, ga)
GN
(WAGMI, WAGMI)

CitaDAO AMA

We recently hosted an AMA in our discord with CitaDAO, our launch partner for xToken Terminal. We covered real estate tokenization, DeFI composability, capital efficiency, regulation, and much more. Listen to the recording here.

Good Read: Governance Minimization

A little over a year ago, Fred Ersham of Paradigm penned a great post that outlined a simple thesis: governance minimized protocols have seen & will continue to see the most use. This has played out empirically, with Bitcoin and other layer 1 protocols leading with very minimal formal “governance” to speak of, while projects that require more human input are typically not relied on to the same extent as governance minimized protocols. This shouldn’t be surprising in crypto but it’s illuminating to understand why this is the case.

However, we’d be missing Ersham’s point if we concluded that we should avoid governance altogether, even Bitcoin is governed, albeit, in a maximally minimized way. Governance is necessary and unavoidable, but depending on what you’re trying to accomplish, the extent and frequency to which decisions need to be made via human agents within a protocol will be a function of the goals of the project. In Ersham’s frame, every project should avoid over-governing and lean towards reducing governance to its absolute necessities, leaving no governance bloat weighing down and threatening the neutrality of the protocol. Governance minimization does not imply we should leave it up to “the gods” or pure chance but rather its rational and in our self-interest to reduce the cognitive load and need for human discretion to the extent possible.

Ersham is addressing “crypto” specifically in this post but it should sound familiar to philosophy enjoooyeerss as it echoes many of the proclamations made by political theorists associated with modernity and even by some of the ancients. The observations being addressed have wide applicability outside of crypto, and touch on truths that apply to any purposeful network or organization of people trying to successfully coordinate around a common goal or set of goals.

xVIBEZ for xLetter Numero Tres

“One more time..we’re gonna celebrate, oh yeah, alright, dont stop the dancin”

check us out here

follow us on twitter here

!join our discord here

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store