Since XY Finance launched in August 2021, we have been early members and developers of the community. We are here today because there have been many community members and liquidity providers who have supported us during the journey over the past few months.
With the growth and development of XY Finance, DAO governance is the next step in our community and LP outreach. In order to advance towards this goal, XY Token will be launched.
XY Token is XY Finance's native utility token and governance token and has the following current and planned functions:
- Staking incentives: XY Token holders will be able to stake their tokens on the protocol and act as a catalyst to boost rewards on provided liquidity by up to 2.5 times. XY Token holders who stake their tokens will receive a portion of the revenue generated by the protocol.
- Liquidity mining: Liquidity providers can stake their assets into the Y Pool to receive xyTokens, such as xyUSDT. In addition to earning swap fees, to further incentivize these providers given opportunity costs, liquidity providers will be eligible to receive XY Tokens through a liquidity mining program, adjusted based on a user's relative contribution and additional parameters.
- Governance: XY token holders will be able to participate and vote in the governance process of the platform. Through governance, users can influence and modify product features and key parameters of XY Finance. This will enable XY Token holders to influence the direction of the protocol's development.
XY Token will be supplied on every single chain supported by XY protocol. If joining liquidity mining program on BSC, you receive XY Token as rewards on BSC. Similarly, providing liquidity on Ethereum brings you XY Token on Ethereum.
XY Finance provides an official bridge for XY Token to cross among supported chains. With the support of consensus, users are able to deposit assets and collect rewards on multiple chains easily and safely.
The total supply will be 100,000,000 XY Tokens to be minted with no possibility for future inflation. The tokens will be distributed in the Token Generation Event (TGE), also known as our initial DEX offering (IDO) on Copper Launch, to the following stakeholders within the DAO.
XY Token Economy
The XY Finance is governed and upgraded by veXY Token holders. The contract of veXY Token allows the community to propose, vote, and implement changes through the administrative functions of strategies. Proposals can modify system parameters, initiate new Y pool, or add entirely new functionality to the protocol.
You can lock your XY Tokens into veXY contract to get veXY Tokens. And there are five of periods to lock-in, from 1 week to 104 weeks. As longer period lock, the incentive will much higher than the shorter one.
As protocol grows, there will be more strategies to be integrated, more proposals to be raised from the community. As veXY holder, you will have voting rights for future protocol changes, including but not limited to change entry / exit fee factor, DAO reserves usage, protocol structure changes.
As swap fee earned from swap, TBD% of fee profit will distributed into treasury of XY DAO. These funds will be used as SAFU to protect our bank protocol along the way. As more profits generate from the strategies, the SAFU funds will be appreciated from it and DAO can decide how the funds can be used to grow the protocol faster and safer way.