Introduction About Incentive Module
We are pleased to announce that our new feature called Incentive Module is officially released on Xpool. This incentive module expects to optimize for the long term growth of Xpool, especially bring more benefits to our community — which is the core of Xpool’s development as it is today, and to express our growth strategy in providing a reputable DeFi platform for Crypto — related borrowing and lending activities in the near future.
We believe that this Incentive module can accomplish the following targets:
- Increase lending and borrowing activities in specific markets.
This function will drive lending and borrowing activity across markets because distributing XPO to borrowers and lenders acts as an added incentive that attracts more capital in the target market.
2. Further decentralize/expand the XPO token holder base
Rewarding XPO to protocol users enhances the spread of the XPO token. This increases the number of users who have access to XPO, thereby decentralizing the protocol.
3. Increase long-term capital pools through stk XPO distribution.
To align long-term incentives, disincentivize speculative farmers, and allow users to receive an underlying yield on top of the XPO they earn, stkXPO will be paid instead of XPO. This helps to align LPs by giving them greater governance weight up front, and it also helps to protect the protocol by raising the amount of XPO staked in the Safety Module. LPs are then paid a staking yield on their vested XPO.
Those stkXPO rewarded from Incentive Module require a 10 day cooldown period. Users have to activate cooldown before unstaking their XPO. After the cooldown period, there is a 2 days window for stalkers to unstake their XPO. By distributing rewards in stkXPO, borrowers and lenders are immediately aligned with the protocol, raising the security stake while earning a yield on their XPO rewards.
Regarding the beyond benefit of the incentive module, we would like to introduce the initial distribution within 60 days through 6 target market below:
When Xpool users make transactions for lending or borrowing on the Xpool platform, they will receive XPO reward. 20,000 stk XPO will be allocated to 6 markets and split to lenders and borrowers with a different rate in each market.
“The more users deposit, the more users earn”. This offers more benefits to users as when users deposit tokens, besides receiving a high percentage of APY as usual, users are also recompensed with an additional certain amount of XPO.
After claiming the reward from the incentive module, the system will help traders automatically stake these XPO rewards into the Lock pool in order to utilize the assets of users and earn more profits in a passive way.
The incentive is expected to satisfy the demand from the market and encourage more investors to invest in the Xpool protocol. Gaining XPO and reinvesting in staking — a new trendy investment form on the market at the moment would help you optimize the profit per asset.
We hope that for the XPO incentive, our community will thrive more strongly and expand the influence of Xpool on the market as the top priority DeFi lending platform in 2021!