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xBOMB - BOMB Staking
Staking bomb.money (BOMB) tokens rewards you with xBOMB, the Bomb Money protocol's governance token.
The BOMB staking user interface
xBOMB is a utility token for the BOMB Money protocol. You must hold xBOMB in your wallet to be able to vote on decisions that will shape the future of BOMB Money. The more xBOMB you hold, the more power your vote will carry.
When xBOMB was launched, the ratio of BOMB to xBOMB was exactly 1.0. At a ratio of 1.0, if you deposited 100 BOMB, you would receive 100 xBOMB in return. And, similarly, if you redeemed 100 xBOMB, you would receive 100 BOMB back.
xBOMB is only minted when BOMB is deposited into the contract. Any time BOMB is sent to the xBOMB smart contract as rewards, it will increase the ratio of BOMB to xBOMB, generating a yield for all xBOMB holders.
John deposits 10,000 BOMB into xBOMB staking, when the exchange is 1.0. John receives 10,000 xBOMB in return for his 10,000 BOMB.
Other users stake a combined 90,000 additional BOMB, making the total staked amount of BOMB 100,000.
Now we have 100,000 xBOMB in total, and 100,000 BOMB in the xBOMB staking contract.
10,000 BOMB are now sent to the xBOMB reward contract, making the total amount of BOMB in the contract 110,000 now (learn where BOMB rewards come from below).
Since the total amount of xBOMB is still 100,000, but the BOMB shared among stakers is 110,000, the exchange rate (ratio) will now be 1.1 BOMB per xBOMB.
John can now redeem his 10,000 xBOMB to receive 11,000 BOMB in return.
Any new BOMB deposits at this point will receive xBOMB at the current exchange rate of 1 xBOMB per 1.1 BOMB (as per this example).
There are numerous sources of BOMB for the xBOMB holders:
- 20% of all BOMB minted on expansionary epochs will be deposited for xBOMB holders. This comes from the protocols BOMB allocation and has no negative impact on BSHARE staking.
- 80% of all fees collected from the autocompounding vaults will be used to buy BOMB on the open market and deposited for xBOMB holders.