xCYCLE
xCYCLE token and feature
Last updated
xCYCLE token and feature
Last updated
The xCYCLE pool allows you to deposit your CYCLE tokens, and compounds them using AVAX rewards, generated by the protocol revenue. The AVAX are used to buy more CYCLE and redistribute them to the user staked in the pool, according to their share of the pool.
Make sure to click on "Approve" and confirm the transaction first, or you will not be able to enter an amount and deposit.
The "Rewards Accumulated" are the rewards for the WHOLE pool. When the "Reinvest" button is pressed, the caller will receive the "Reinvest Rewards" to make up for the transaction fee, and the "Rewards Accumulated" in AVAX will be used to buy CYCLE and distribute them, like explained earlier. This is very similar to how the reinvest button works for Cycle vaults.
You should then see your amount of CYCLE increase. The amount of xCYCLE token you have, on the other hand, will remain the same. This is why the ratio between xCYCLE and CYCLE grows overtime, as the value of 1 xCYCLE increases with the yields it collects.
This allows you to earn more CYCLE without any risks of impermanent loss.
The xCYCLE token is a share token you receive when you deposit in the xCYCLE pool. To add it to MetaMask, click on the "Add token" button at the bottom of your token list and add the following address 0x3b2EcFD19dC9Ca35097F80fD92e812a53c180CD1 . You should then see the same amount of xCYCLE shown on the Cycle page, in your MetaMask.
Protocol revenues are reinvested to buyback CYCLE that gets distributed to all xCYCLE holders.
So by holding the xCYCLE token, you essentially receive a share of the protocol revenues.
