xSYK Token

xSYK tokens emerge from locking SYK tokens into a staking mechanism, a process designed to incentivise long-term holding and deeper ecosystem participation. For every SYK staked, one xSYK is issued, marking a 1:1 conversion rate.

Redemption Process

The xSYK framework introduces a distinctive redemption mechanism designed to balance liquidity provision with long-term ecosystem advantages:

Overview: SYK holders can lock up their tokens in the xSYK framework to earn yield. To redeem these tokens, holders must vest their xSYK for a period ranging between a minimum and maximum designated time.

Vesting Period Details:

  • Minimum Vesting Period (MIN): Holders who vest their xSYK for at least 7 days can redeem 50% of their SYK after this period.

  • Maximum Vesting Period (MAX): For those who choose to vest their xSYK for 6 months, they will be eligible to redeem 100% of their SYK at the end of this period.

Impact: The redemption timeframe and the corresponding return of SYK are contingent upon the chosen vesting period. Opting for the minimum period results in partial redemption of the invested SYK, while the maximum period allows for full redemption. This structured approach incentivizes prolonged engagement within the ecosystem and affects liquidity dynamics by controlling the release of SYK tokens. In summary, the amount of SYK available to the user while converting back from xSYK, is determined based on the vesting period chosen by the user.

Emission Strategy

A core component of the xSYK proposition is its role in the broader emission strategy of the SYK token, designed to ensure a sustainable and growth-oriented ecosystem. The specifics of this strategy are delineated in the SYK token overview, emphasizing controlled inflation and strategic token distribution.

Incentives for Holding xSYK

Holding xSYK tokens unlocks a series of incentives aimed at rewarding long-term participation and alignment with the ecosystem’s growth:

  • Reward Gauges: xSYK holders gain the ability to influence the allocation of emissions, directing rewards to areas within the ecosystem where they see the most potential for growth.

  • Enhanced Returns: The incentive structure rewards longer lock-up periods with potentially higher returns, aligning stakeholder incentives with the long-term success of the Stryke platform.

Strategic Benefits

The introduction of xSYK is strategically positioned to bolster the Stryke ecosystem by:

  • Encouraging long-term holding patterns among SYK stakeholders, thus promoting ecosystem stability.

  • Enhancing the utility of SYK through staking rewards and governance participation.

  • Facilitating a broader distribution of rewards that align with ecosystem participation and contribution.

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