xREF is the main staking contract (xtoken.ref-finance.near) on the platform. When you stake your REF, you effectively exchange your REF for xREF. Over time, you will always earn more REF by holding xREF tokens.
{% hint style="info" %} There is no Divergence Loss when you stake REF for xREF tokens {% endhint %}
Every swap executed on Ref Finance generates revenue for the protocol.
- 100% of the protocol fee will be used to buy back REF tokens, of which:
- 75% will be transferred to the xREF contract (xtoken.ref-finance.near) and released linearly over time
- 25% will be allocated to a Community/Provision treasury. This treasury will be used to fund grants and other community initiatives/programs
.jpg)
Like any liquidity provider, Ref Finance collects its shares (16% of the total pool fee) in real-time and will be paid when it removes liquidity from the pool.
Converting protocol LP tokens, resulting from the trading fees, involves the following actions:
- Remove liquidity from pools
- Withdraw corresponding tokens from Ref Finance (v2.ref-finance.near) to the DAO (ref-finance.sputnik-dao.near)
- Send tokens from the DAO to a specific execution account
- Buy (back) REF tokens (with the execution account)
- Send REF tokens to the staking contract (xtoken.ref-finance.near)
The process happens on a quarterly basis.
{% hint style="info" %} The first buy back involved as many as 35 DAO proposals {% endhint %}
Because the conversion from LP to REF tokens happens on a quarterly basis, and because the tokens collected might be very volatile on the same period, there might be a significant difference between the daily 'observable' revenue and the 'realised' revenue, after conversion.
Finally, rewards are being released linearly on a quarterly basis, and will have boosted markups for the first three years (subject to change):
- Year 1: 2x
- Year 2: 1.5x
- Year 3: 1.2x
- Year 4: 1x