Hedge Mining

XEON stakers can qualify to become miners and settle hedges or loans as soon as they expire.

XEON Protocol is made up of multiple smart contracts deployed on the blockchain. As such when hedges or loans are written, a call has to be initiated on the settlement function when the deal expires.

To fill this gap, the protocol employs miners to initiate deal settlement and earn a commission for it. This is called Hedge Mining.

Qualification

To qualify as a hedge miner, the following is required:

• Be a XEON investor

• Stake XEON tokens

• Assign the required minimum amount of XEON to the Mining Pool. Amount assigned buys mining rights in proportion the whole mining pool.

After meeting this criteria, a wallet is now considered an eligible miner. This means;

• Miner can earn a commission from each deal they settle

• Miner earns fees in underlying token or paired currency of underlying token

• Claim or withdraw commission accrued into their wallets

Mining Criteria

• Miners can choose which hedges or loans they want to mine based on personal preference to underlying tokens in the deal. Hedges of popular tokens can find themselves being settled faster than those with unpopular tokens.

• The amount of tokens assigned by miner to qualify, determines the sizes of hedges the miner get to settle. There are hierarchies, a wallet with the lowest amount of tokens assigned cannot be granted the same volume of deals as a wallet with the largest assignment.

• Deals are mined as soon as they expire, there are no reservations.

Miners earn a commission proportional to the pay-off or settlement value. As stated in How to Earn supposed the settlement fee charged by the protocol is 5% the payoff. Then 15% of that 5% will be awarded to the minder during a hedge settlement. Whilst the rest goes to the protocol as revenue earned.

Mining Example:

We generate real yield through the following approaches: