Good day to all of us here on Crypto space again guys! I hope you are all doing well and are in great shape when it comes to your portfolio especially we are on a bull-run right now. Today, I would like to talk about one of a DEFI gem that is still yet to be discovered by our different crypto fanatics worldwide. Its name is XToken. Its ecosystem is named Xtoken as well with a ticker of XTK that has a colored blue letter X.
I know that most of you here are here with the summer of DEFI last year. It takes a lot of time to monitor your holdings and all of those staking, governance, re-staking to have compounding effects and re-investing plus claiming of any other rewards of your favorite DEFI tokens in the crypto space. It does not only consumes your precious time but also the high gas fees eat up your returns and it also eats your time especially if you need to speed up your transaction!
Worry no more, because that is what Xtoken devs, team, and community is aiming to solve! Their vision is to give anyone from retail investors up to whales to "multiply yourself" by making the code of Xtokens do and replace the manual work to do all technical, time, and money-consuming tasks in DEFI. Giving you more time for other work and other important things to do in your life.
**Note: All images and credits all belong to the xToken team and community.
Different XToken assets and how you can get them
Alright, first of all, here is the website wherein you can be of getting hold of xTokens: https://xtoken.market/
This is the image that will show you once you click the 'explore' button on the homepage.
Let us tackle what each of those xTokens are shall we? Of course! I will also explain their usage in this ecosystem/protocol.
Let us start with xKNCa
---> To summarize for you the usage of this token, it is an optimized ERC-20 staking strategy and is automated to keep on voting in the governance of KNC in favor of the KNC stakers. Its protocol and mandate of this xtoken is to keep on voting for the accruing of the KNC stakers in a long-term perspective and for compounding the returns of fees for KNC stakers. If you have a lot of KNC, then this is the best thing to buy.
---> This Xtoken xKNCb is for those who are in favor of the 'liquidity is the life of DEFI community' type of thinking. Which all of us agree as well because liquidity is needed if you wanted to trade the token at no slippage nor a huge price impact. Making the price stable and grows in holders of the token and its price mid to long term. It is for incentives in the liquidity providers for the KNC community especially they are having impermanent loss while on liquidity providing in the ecosystem.
---> To summarize, the SNX staking is complicated because of different over-collateralization ratios in the Synthetix smart contracts and minting of sUSD, burning of sUSD to get back your SNX token, staking to here and there and claiming of rewards, etc. What xSNXa token does is all of those headaches and learning curves to know that is solved by the xSNXa token and does all the hard work for you. If you are a fan of derivatives and synthetic assets and loves SNX, this is for you while you are learning SNX. It's double purpose, right? For a more detailed section of it and I know you want it, here is from the xToken dev team write up: https://medium.com/xtoken/introducing-xsnx-synthetix-staking-made-simple-92de1d6c6a60
Before I talk about xAAVEa, as you could see in the screenshot above, there is what you call the word 'mandate'. For the 2 mandates, which is the Buchanan mandate and Samuelson mandate here is the explanation of the two as per our source and I quote: https://medium.com/xtoken/introducing-xaave-mandated-governance-81d0cdb8ee7e
Buchanan is known for his work in Public Choice Theory, a body of work that emphasizes the use of economic incentives to drive political behavior. He’s been associated with the Austrian School while pursuing a deeper exploration of ethics and social philosophy.
Samuelson, on the other hand, is known for defining the Samuelson Condition, a framework for efficiently allocating funding to public goods. While staunchly pro-growth, Samuelson has been identified as a Neo-Keynesian or Keynesian-adjacent and as someone who appreciated the role of public policy in market-based economies.
So for xAAVEa, same rule applies as to what the xKNCa is having. Which is incentivizing more on the staker side than the liquidity providers in terms of the governance proposals because they are securing most of the network.
---> This pool for AAVE will be for the one who will have the governance of Samuelson mandate. Wherein all those fees and other rewards will always be in favor and will vote for the liquidity providers to maximize the growth of the community. Hence what is called above by Samuelson as 'public goods.
---> This is again the token of choice if you are a HODLer and staker of 1inch token because it follows Buchanan Mandate. Wherein it follows the doctrine of center-right economist James Buchanan. It is more in favor of the stakers of 1Inch token in the protocol.
---> This token is for the ones who are in favor and will always vote on the governance that is in favor of the liquidity providers hence the Samuelson Mandate for 1Inch believers as well.
Basically guys, both tokens whether it be xINCHa, xINCHb, xAAVEa,xAAVEb that you are going to choose, it will always contribute to the growth of the ecosystem of that token so do not get complicated on what to choose when you are buying any of the xtokens. Here is another screenshot from the xToken team about the Buchanan and Samuelson mandate.
How to buy xTokens of your choice
---> This is where the fun and action begin! With this guide, it will be easier for you to buy and stake your xTokens of your chosen project to get XTK as well for providing liquidity! So first of all, go to this site in order for you to buy xtokens.
Step 1: Go to this website: https://xtoken.market/app/invest
Step 2: Connect your wallet of choice. (Metamask is recommended) You could download their wallet here: https://metamask.io/ and buy ETH then swap to the native token of your choice or you could just swap ETH directly to the xToken of your choice. But if you have already the native tokens like KNC, SNX, 1INCH, better swap it directly to Xtoken counterparts.
Step 3: Choose your desired Xtoken of choice. Either use ETH or the native token of the Xtoken that you are about to buy. Like the one below for KNC
All of the prices are in there as well so that you could see how many KNC, 1INCH, SNX, and AAVE is per equivalent xtoken of theirs.
Step 4: Once you bought, you may check the dashboards to check your Xtokens and LP tokens!
Providing Liquidity to earn XTK tokens
Let me navigate you to the official liquidity pools of different xINCH tokens. It can be seen in the Xtoken cafe as well. Always remember that there are about 3 pools which is the one on UNISWAP, 1INCH, and Balancer. Depending on how many is providing liquidity is your APR as well!
Additional notes: Depending on what where you are going to add liquidity, you will be asked to divide your total assets to either 3 or two and swapping and buying the needed assets below. For Balancer, you also need to have to setup a proxy in Balancer if you wish to provide liquidity in there so as much as possible use the address before that you are using in Balancer already. Then depending on the single or multi-asset needed for the liquidity providing, that is the one you will follow. Enjoy getting XTK!
h. XTK-ETH pool---> https://app.uniswap.org/#/add/0x7f3edcdd180dbe4819bd98fee8929b5cedb3adeb/ETH
Advantages of having xTokens and native Xtoken
A. No gas costs when re-staking, compounding, claiming etc.!
---> Because this is hard-coded by our developers from the Xtoken team, you could just "buy and forget" the xtoken of your choice and do whatever you want and those tokens will do their job and protocol it was set in! The only time you are going to have gas fees costs is when you buy Xtokens and sell Xtokens.
B. The power of compound interest
---> The 8th wonder of the world as per our late scientist Albert Einstein. Xtokens are compounding your gains automatically. Therefore, you are earning passive income from fees and other staking benefits of the protocol of the token where you bought into and what mandate it is which directs us to the next advantage.
C. No stress in overhead costs
---> This is in addition to letter B above. Because it removes the claiming, re-staking, voting, burning, minting and in short complicating things. That's why we DEFI is because we wanted to automate and earn right?
D. Collaterally valued tokens
---> If other protocols are just giving you LP tokens or IOU tokens and it is locked with no way for you to use that token, then you are in luck because these xTokens can be traded with ETH and its native tokens! So you could still be able to collateralize these crypto-backed xToken assets.
E. Lowering Taxes for your gains
---> Because the transaction begins only when you buy or sell or buy and sell xTokens, that is the only thing that your accountant could include in your taxes if it is needed. Therefore, aside from the mental stress that is removed, your tax is also lowered down!
G. Token Governance voting representation
---> Because all of those tokens have governance functionality, for sure the protocol built-in to your Xtoken will do its job to vote on behalf of you! Almost you have multiple clones doing all the brawns hard work.
I am excited for this project because I knew that there will be more tokens that they will introduce so always stay tuned about it guys! This helps a lot of DEFI participants to grow and sit back while they are passively earning. To know more about xToken, you may visit their website and their social media channels below. Thank you for reading and more power to all of us!
Governance explainers for different xTokens: https://xtoken.vote/
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