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xBNT
Bancor Staking Strategy

Summary:

xBNT is an ERC20 wrapper for the the BNT staking and governance process. xBNTa is one instance or BNT strategy in which holders express a long term bullish view on the value of BNT and BNT staking rewards. xBNTa is a set-and-forget token, requiring no active participation from holders. xBNTa holders participate in governance via xToken's Buchanan Mandate, where voting decision-making/deliberation is anchored around the doctrine of center-right economist James Buchanan.
Read more about Mandated Governance at xtoken.vote.

The Strategy

    Users deposit BNT and xBNT finds the highest-yielding pools on Bancor and rebalances liquidity between pools to maximize profits for xBNT holders.
    xBNT automatically re-stakes BNT rewards without requiring users to pay gas.
    xBNT introduces a self-driving experience for BNT LPs.

Why xBNT?

    Lower gas costs
    Compounding returns
    No mental overhead
    Liquid collateral
    Tax Efficiency
    Representation in governance
Meme by @ΔLΞXΔNDΞR
Lower gas costs: xBNTa investors pay gas costs 1) when they mint on xToken or buy on a DEX and 2) when they burn xBNTa or sell. That’s it. No gas fees for staking, claiming, re-staking, voting, or anything else.
Compounding returns: The xBNTa contract automatically re-stakes claimed BNT rewards on behalf of the pool, allowing for maximum compounded returns. This comes at no extra gas expense to holders.
No mental overhead: Many BNT holders are long-term minded. There’s really no reason for them to periodically and methodically claim and re-stake. xBNTa is set-and-forget. The burden on holders is non-existent.
Liquid collateral: While BNT stakers are issued Staked BNT when they lock their tokens in the staking contract, those tokens are just a representation of their staked position and are not yield-generating on their own. In contrast, xBNTa is a liquid, fee-earning asset that can be transferred from wallet to wallet, added to liquidity pools or deposited as collateral for loans. (xToken Lending coming in Q2.)
Tax efficiency: In many countries, the action of claiming your rewards qualifies as a taxable event. Additionally, this claim is often registered at the full tax rate, not the lower capital gains rate. To add insult to injury, many investors will have to send a laundry list of micro-transactions to their CPAs — one for each claim. xBNTa fixes this. There are only two transactions: in and out. And your rewards compound tax-free until you’re ready to sell. (Please consult with your tax advisor before making any decisions on this basis.)

Risks:

xBNTa is risky and highly experimental tech. Additionally, the success of xBNTa is highly dependent on the success of the BNT Protocol. Do your own research on the risks of the xToken platform and BNT.
xBNT has been audited by PeckShield. Read the report here.
Last modified 29d ago