How to Earn
Xeon Protocol provides XEON investors with ways to earn whilst contributing to the ecosystem growth.
In addition to the farming pools mentioned in the previous chapter, investors in XEON can also earn additional income based on real yield, as follows;
As XEON investors
In addition to the farming pools and methods explained in Farming Pools, XEON investors can earn a share of the protocol revenue through:
Staking XEON Tokens
Mine or Settle Hedges and Loans
Staking XEON Tokens
We reward investors for simply holding our token and enabling us to operate. XEON investors should stake their tokens on our staking smart contract in order to be eligible for the monthly revenue sharing.
See Use Cases on how to stake and earn as a XEON investor.
Mining / Settling Hedges
Smart contracts do not self execute. This means for a protocol like ours whereby hedge or loan deals have a future expiry date, someone has to settle the deal in order to officially conclude it.
Settlement is the process of taking a hedge or loan deal, assessing its constants and then determining the outcome to execute for both parties.
Constants factored in during settlement are; start value, current value, expiry date and the pay-off or loss for each party.
Xeon Protocol taxes all hedge proceeds, in the base or paired currency. This tax is on the payoff only not the underlying value of the hedge or loan.
On maturity or expiry date, a hedge miner or settler takes the deal and executes it. The proceeds are moved from loser to winner and the protocol takes its cut in taxes. The hedge miner in turn also takes 15% of the protocol's cut, meaning that net gain to the protocol is 85% of the settlement fees.
Providing Native Hedge Liquidity
Stake your favorite tokens on our staking contract, and assign them to a liquidity pool of your choice. Xeon Protocol uses native liquidity pools to write fixed term or seasonal deals for the OTC market. Projects have to farm the native liquidity pools with their project tokens for extra income to the project.
As Project Partners
We invite projects to partner with Xeon Protocol and provide hedge and lending liquidity for their own token investors.
Projects that have native ERC20 tokens can farm yield for their own investors as stipulated in Farming Pools.
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