Mint/Redeem - xARX

ARX and xARX: Convertibility and Vesting Mechanism

The ARX and xARX tokens in the Arbidex ecosystem are designed to offer users flexibility. The conversion process between ARX and xARX is an essential feature that allows users to navigate between these two tokens based on their preferences and objectives.

ARX to xARX Conversion:

Users can freely convert ARX into xARX at any time. The conversion process is instantaneous and follows a simple 1:1 ratio. This means that for every ARX token converted, an equivalent amount of xARX will be generated, enabling users to actively engage in governance and access the exclusive benefits associated with holding xARX.

xARX to ARX Redemption:

The redemption process, which converts xARX back to ARX, introduces a vesting mechanism. Users have the flexibility to choose the vesting duration that aligns with their investment strategy. The conversion ratio between xARX and ARX varies depending on the selected vesting duration. Here are the details:

• Minimum Vesting Duration (15 days): This option provides a 1:0.5 ratio, meaning that for every xARX redeemed, users will receive 0.5 ARX.

• Maximum Vesting Duration (6 months): Selecting the maximum vesting duration offers a 1:1 ratio. In this case, each xARX redeemed will be converted into 1 ARX.

It is important to note that if the chosen vesting duration is less than the maximum, resulting in a ratio below 1:1, any unclaimed excess ARX will be burned. This ensures a fair distribution of rewards and incentivizes users to commit to longer vesting durations.

Cancel Redeem Option:

At any point during the redemption process, users have the freedom to cancel their redeeming operation. By canceling, users will retain their entire amount of xARX, and no ARX will be generated. This feature provides flexibility and control over the vesting process, allowing users to adjust their strategies or respond to changing market conditions.

By incorporating this mint/redeem mechanism, Arbidex ensures a seamless and dynamic user experience, offering users the ability to convert between ARX and xARX while adhering to their desired vesting timelines and maximizing their token utility within the ecosystem.