Set the table
Today, I'm going to discuss the forthcoming 8th token, the X7 Deposit token (X7D); set to launch in phase 3. This gives you time to educate yourself about why the passive income opportunity with X7D is truly staggering. X7D is one you should definitely have on your radar.
This article will focus on the X7D token and will also reference other tokens where appropriate. If you are just learning about X7 Finance, I would suggest that you have a look at their website and read the whitepaper to get the big picture https://x7.finance/. For the rest of you, I hope that this gives you good insight as to the opportunity X7D presents.
So, what is X7D? It is the token that will exist to encourage capital injection into the lending pool. Xchange works hand in hand with the Lending Pool; the two of which I consider to be the heart & soul of the X7 ecosystem. The capital injection into the Lending Pool is the Life Blood of the ecosystem; made possible by the X7D token.
How does X7 encourage capital injection into the lending pool? Passive income, that's how!
The X7D token will have great appeal to those who love taking a laid back approach to investing, and also to those who love Ethereum, but don't want to sell it. With X7D, you can earn a passive income from your ETH by depositing it into a Rock Solid decentralized platform with zero risk, and over time, grow your ETH holdings.
Now, how does it work? X7D is a wrapped ETH token which will be the capital injected into the Lending Pool. X7D is minted at a 1:1 face value with ETH, and is redeemable at 1:1 for Eth.
The rewards earned are…
“in the form of a perpetual annuity that performs against the growth of liquidity within the ecosystem”.
Now, let's say you minted some X7D with your ETH; how do you get the rewards?
You begin by staking your X7D tokens to the lending pool, and in turn you will receive an NFT that records the following:
“1. Amount of X7D it is redeemable for
2. The locked liquidity floor price of the constellation tokens
3. The X7D Token lockup period”
At the maturity of the NFT, you have a couple of options; you can withdraw the profit and re-stake, or you could withdraw your X7D and redeem for your ETH at 1:1. Smart money will probably funnel the profits back into the lending pool for an ever-increasing passive income.
“Profits are determined by comparing the locked liquidity floor price of the constellation tokens at staking time to the current locked liquidity floor price. A large portion of the lending proceeds will go towards buying back and adding locked liquidity to the constellation tokens. This activity provides a mechanism for calculating an actual return that reflects the profit from lending”
The of the X7 ecosystem. They are a safeguard to liquidations if a borrower fails to honor the terms of the lending contract. Constellation tokens have a continually rising floor price as 2% of the tokens are burned with every transaction, and as stated above;