Cages

What is xTOKEN-LP?

xTOKEN-LP is a token, that you receive in exchange for staking LP tokens in our cage. While holding the token, it will appreciate in value, as fees from deposits are "locked to the liquidity of FRANK." The xTOKEN-LP token is always worth more than a regular LP token, because xTOKEN-LP accrues value from platform fees. The newly purchased LP is then divided up proportionally between all of the xTOKEN-LP holders in the cage, meaning their xTOKEN-LP is now worth more LP. Because of the way the rewards are generated, the ratio of xTOKEN-LP will increase with the value of LP, and the value of one xTOKEN-LP will always be greater than the value of one LP.
Fees generated into the Cage vaults are stored in 3 different Time-locks.
4% Fee Breakdown: Developers: 1% Reserve (Marketing, cages upkeep costs): 1% FRANK Buyback: 2%

Profit Breakdown & Cage Staking Flow

96% Deposit Breakdown: Operational Fee: 10% Buyback FRANK: 20% Reserve: 1% Cage "Auto-stake": 69%

So how does it work?

The most important aspect our users should look at is the Ratio or Cage Per Token value, which is numerically the same.
Let's take a look at this example, The Cage Per Token (Ratio) is 1.000039 after 899.446265 Banana was staked.
Day 1: 899.44265 xBanana was staked, the Ratio after the deposit was 1.000039
The following day, and after one more deposit, the Ratio or Cage Per Token increased to 1.001617, the Cage Per Token Ratio will ALWAYS increase everyday that passes by and every time someone stakes into the cage. The ratio is the most important metric to pay attention to, this value will never decrease, even if a user leaves the cage. Making the cages concept different than regular farming.
Day 2: The 899.446265 xBanana at the current ratio 1.001617 is now 900.901466 Banana
The available amount in this example is calculated by multiplying the xBanana staked times the Ratio. The user can withdraw the available balance at anytime.
The key for maximum returns is to stake for longer time.
In summary, as time goes on, the ratio will increase making your available balance higher than your original staked amount.
Cage Per Token vs Token Per Cage
The Token Per Cage is the complement of the Cage Per Token (Ratio) value. The numerical value after the decimal point plus the numerical value of the Token Per Cage must be equal to 0.99999999 <=1.

Withdrawal Fee

100% of the Withdrawal fee is used to deposit and increase the cage per token ratio.
Stake your LP tokens for xTOKEN-LP here: https://frankenstein.finance/#/cages
Last modified 7mo ago