🌊Liquidity Pools

Multi-Pronged Approach to Liquidity & Value Creation!

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Video Explainer

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⚡️ Liquidity Pools

ALX-vXNF

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• At the initial deployment, the protocol will establish the ALX-vXNF pool on Uniswap V3 with a 1% fee tier across a full range. This setup involves minting ALX tokens and pairing them with 50% of the vXNF provided at deployment, at a 1:1 ratio, supplied by the caller of the deployment . Users will be able to buy and sell ALX from the pool, and adding liquidity to the 1% fee tier will be permitted.

vXNF-ETHx

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• At the initial deployment, the protocol will establish the vXNF-ETHx pool on Uniswap V3 with a 1% fee tier spanning a full range. This setup will utilise 10% of the ETH collected during the first hour through ETH bond purchases. The process involves minting ETHx equivalent to 100% of the accumulated eETH and pairing it with 50% of the vXNF provided by the caller of the deployment. Users will be able to buy and sell vXNF from the pool, although adding liquidity to the 1% fee tier will be restricted.

Pool Deployment

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• During the first hour of the deployment, all the ETH collected will be distributed with 10% of the ETHx collected from ETH bonds allocated to the vXNF-ETHx pool, while the remaining 90% will be directed to the ALX Buyback & Burn.

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⚡️ Liquidity Migration

Selling ETHx

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• When ETHx is sold for ETH or eETH through the protocol, a specific process is followed. First, 25% of the ETHx received is used to create a 1-year bond with an ETHx maximum payout of 200%. Another 25% of the ETHx is used to purchase and burn ALX tokens. The remaining 50%, along with any surplus, is then sent directly to the holder's wallet address in either ETH or eETH, along with the created ETH bond.

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Selling vXNF

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• When vXNF is sold for ETHx, the protocol follows a three-step process. First, 50% of the received ETHx is used to purchase a 1-year bond with a maximum ETHx payout of 100%, which is then given to the seller. Second, 25% of the ETHx is used to purchase and burn ALX tokens. Finally, the remaining 25%, along with any surplus, is allocated to the ETHx Reserve. When the ETHx Reserve is triggered, these funds are distributed to ETH bondholders based on their earning power—the greater their earning power, the larger their share of the rewards.

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Selling ALX

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• When users opt to sell their ALX for vXNF, the liquidity migration process does not apply. Instead, when ALX is sold for vXNF, the entire amount of vXNF is transferred directly to the seller's wallet address.

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⚡️ Liquidity Trading Fees

ALX-vXNF

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• Fees in ALX: Fees collected in ALX are converted into ETHx and allocated to the ETHx Reserve. Once triggered, this distribution is allocated to ETH bondholders based on their earning power. The more earning power an ETH bondholder has, the larger their share of these rewards will be.

• Fees in vXNF: Fees collected in vXNF are converted into ETHx and allocated to the ETHx Reserve. Once triggered, this distribution is allocated to ETH bondholders according to their earning power. The more earning power an ETH bondholder has, the larger their share of these rewards will be.

vXNF-ETHx

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• Fees in vXNF: Fees collected in vXNF are converted into ETHx and allocated to the ETHx Reserve. Once triggered, this distribution is allocated to ETH bondholders according to their earning power. The more earning power an ETH bondholder has, the larger their share of these rewards will be.

• Fees in ETHx: Fees collected in ETHx are directly allocated to the ETHx Reserve. Once triggered, this distribution is allocated to ETH bondholders based on their earning power. The more earning power an ETH bondholder has, the larger their share of these rewards will be.