Lower your XEN Crypto minting costs using AAVE.

By codecustard | codecustard | 17 Mar 2023

XEN Crypto is a project developed by Jack Levin focusing on the first principles of crypto as laid out in the Bitcoin whitepaper by Satoshi Nakamoto.

In a nutshell, XEN imitates the tokenomics of Bitcoin with a difficulty factor that makes XEN deflationary over a long period of time.

One key difference between Bitcoin and XEN is that Bitcoin is rewarded to miners for securing the blockchain, whereas XEN rewards minters for their time.


XEN Crypto relies on the security of the underlying blockchain that it exists on. These are the following blockchains that it is currently deployed to:

  • Ethereum
  • Binance Smart Chain
  • Polygon
  • Avalanche
  • Ethereum Proof of Work
  • Moonbeam
  • Evmos
  • Fantom
  • Dogechain

Over the course of the crypto evolution, the space has gotten to a point of printing money out of thin air with a "story". Most of the time, projects heavily incentivize early adopters or venture capitalists. For this reason, the space is riddled with "pump and dump" scenarios.

By nature, creating a crypto token is relatively cheap. Anybody can launch their own coin and deem whatever initial value.

XEN Crypto focuses on fair distribution of its token with as minimum cost to produce as possible.

XEN Crypto is free in the same sense that Bitcoin is free. Anybody can mint their own XEN the same way that anybody can mint their own Bitcoin. The only thing that one needs to mint XEN is the gas cost of the transaction to start minting and claim the XEN when the minting process is finished. XEN abstracts the tokenomics of Bitcoin through a simple algorithm that is essentially a function of time.


Since the cost to mint XEN is correlated to the native token price of the blockchain one is trying to mint XEN on (e.g. Ethereum), typically people are incentivized to not mint during high network congestion or when Ethereum pumps in price in a short time period. This is a good strategy to keep one's minting costs low, but not minting means not making more XEN.

One strategy one can use is lending protocols like AAVE.


Without AAVE, the typical process of minting XEN is as follows:

  • Buy Ethereum (if one doesn't have enough Ethereum to mint).
  • Mint XEN.


Here is an alternative process to mint XEN using a lending protocol like AAVE:

  • Buy Ethereum (if one doesn't have enough Ethereum to mint).
  • Supply Ethereum as collateral on AAVE.
  • Borrow Ethereum with your collateral.
  • Use the borrowed Ethereum to mint XEN.
  • When Ethereum drops in price pay off your loan either partially or fully.

Since your loan and collateral are both in Ethereum, they go up and down similarly. If Ethereum doesn't dip in price, you're essentially minting XEN as if you gone through the traditional process (simply buying Ethereum and minting XEN). If Ethereum does dip in price, you pay the Ethereum loan off at a cheaper rate. This allows you to mint XEN more often opposed to waiting for Ethereum to dip in price, but still take advantage of Ethereum price dips.


Some things to consider when doing this strategy is even though your loan and collateral are in Ethereum, it is not a good idea to take the maximum loan possible based off your collateral because although they both pump and dip in synchronization, you have to also consider the APY of the loan that may fluctuate. It's best to keep some borrowing power free in case the loan APY increases which might cause your collateral to liquidate. But worse case scenario, if it does liquidate, it's kinda similar to if you simply bought Ethereum at spot price and minted XEN, so you're not necessarily at a big loss if it does liquidate.

How do you rate this article?



Designer. Developer. Entrepreneur.


Designer. Developer. Entrepreneur. Sharing the journey of building wealth from ground zero.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.