Inspired by the success of Camelot Exchange and GND Protocol, Equilibria is introducing the xEQB token structure.

Introduced by Camelot and GND, the escrowed version of the protocol native token, such as xGRAIL and xGND, offers a unique mechanism that promotes alignment between the protocol, token holders, and liquidity providers, effectively circumventing the pitfalls associated with mercenary capital commonly observed in decentralized exchanges (DEXs).

By providing a redemption process where xToken can be converted to the original token through vesting, xToken holders are incentivized to engage in long-term commitment to the protocol. This mechanism creates a stronger bond between the stakeholders and the platform, discouraging short-term speculative behavior.

Moreover, the xToken offers a powerful mechanism for facilitating the development of various use cases and transforming the protocol into an open platform by enabling flexible allocations and allowing for a diverse and expanding set of features.

In summary, xToken’s design and redemption process fosters a community-driven approach that prioritizes the protocol’s longevity and success over short-term gains. Its open allocation framework not only enhances the functionality and versatility of the protocol but also encourages collaboration, innovation, and active participation from the ecosystem. Learn more about xEQB from here.

Now, let’s delve into the details of xEQB:

xEQB serves the purpose of aligning the goals of Equilibria with the token holders and liquidity providers, mitigating the challenges posed by opportunistic capital often encountered in many DeFi protocols.

The xEQB token structure is designed to unlock the full potential of the token utilities. The conversion ratio between EQB and xEQB is set at a 1:1 ratio, meaning that 1 EQB is equivalent to 1 xEQB. Users have the flexibility to convert EQB into xEQB to access additional functionalities and benefits.

Redeeming xEQB back to EQB is also supported, with the conversion ratio determined by the duration of the redemption period. This conversion follows a linear relationship between the redemption time and the conversion ratio. For instance, if a user redeems 1 xEQB after 2 weeks, they will receive 0.5 EQB, while redeeming after 24 weeks will yield the full 1 EQB. The conversion ratio gradually increases over time within this range.

When converting xEQB to EQB at a ratio lower than 1:1, the excess EQB tokens will be transferred to an admin address and burned. This reduces the overall supply of EQB, contributing to the deflation of the token over time.

EQB emission will be combined with xEQB. The main goal is to incentivize long-term commitment and create a more stable and sustainable ecosystem for the protocol, token holders, and liquidity providers..

What you can expect from xEQB:

  • More LSDFi integration based on xEQB platform.

  • Diverse fee-sharing sources, including fees generated from Limit Orders on YT/PT trading, leverage trading on YT/PT, and leverage yield farming based on Pendle Pools.

  • Introduce fee tiering for Limit Order/Leverage YT/PT trading based on Pendle. The fee structure will be based on the positions held in xEQB.

  • Dynamic yield boosting, EQB/xEQB emission from the pool will be determined by the allocation of xEQB.

  • Flexibility in finding more use cases and benefits.

We are continuously working to improve and expand the Equilibria ecosystem. Your support and participation are highly valued as we strive to deliver a comprehensive and innovative platform.

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