Today's spotlight is on Sideshift.ai's very own $XAI token! A common question within the crypto community is, "Where does the yield come from?" By reviewing the platform, the token, and its yield barring staked token, let's answer that question.
Platform Overview 🤖
Sideshift.ai, launched in 2018, offers users direct wallet-to-wallet trading. With over 200+ tokens to choose from across various networks and their L2s, the platform provides a comprehensive trading experience.[1]
Additionally, Sideshift.ai offers an API endpoint for other projects wishing to integrate the exchange into their systems.[2] The platform generates revenue from trading fees on the website, affiliates using the API, and the recently launched Sideshift.ai Telegram Trading Bot.
$XAI Token 🎈
$XAI is the token used to onboard all Sideshift.ai activities. Initially, the token was used to raise capital for the project. Since then, it has served to reward holders, affiliates, and referral incentives while capturing the protocol's cash flow.
In 2022, the staking mechanism moved on-chain, leading to the launch of $svXAI, the yield-bearing staked token. Users who stake $XAI into the Sideshift.ai vault receive $svXAI, which reflects their position size. [3]
Yield Generation ⚖️
25% of the daily revenue is distributed in the form of $XAI to $svXAI holders. When users unstake their $svXAI position, they receive back the principal $XAI amount plus any yield accrued during their staking period.
The APY of the yield ultimately depends on the exchange's daily volume. Users can review the DefiLlama page to see past performances. (This is not financial advice, do your own research.)
This is a reprint from my MIRROR
