How is xRA used?

xRA offers three distinct functionalities that form the basis of the decision matrix:

  • Instant Exit to RA (xRA --> RA): This conversion allows for an immediate transfer of xRA to RA at a rate of X* RA per xRA with a Y*% haircut applied.

  • Instant Exit to veRA (xRA --> veRA): With this functionality, xRA can be instantly converted to veRA at a rate of 1 veRA per xRA.

  • Vesting of xRA (xRA --> RA or veRA): Vesting allows users to receive the full value of the RA backing each xRA, through various methods:

    • Minimum Vesting Length (Cancellation Period): The minimum vesting period for xRA is set at 14 days (86400s * 14), during which it cannot be canceled or returned.

    • Maximum Vesting Length (100% Exit): The maximum vesting period for a full exit of xRA is 120 days (86400s *120).

    Once the minimum vesting length has been surpassed, it becomes impossible to cancel the vesting to retrieve your initial xRA.

X* = Variable changable by governance that represents the amount of xRA -> RA conversion from instant exits

Y* = Variable that represents the haricut % determinable from X

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