Breaking through ve(3,3) restrictions: The x(3,3) mechanism of Shadow Exchange and the innovative application of $x33.

Vote Escrow (ve(3,3)) Models are nothing new: staking, voting, receiving rewards, and repeating. Shadow Exchange has revolutionized the ve(3,3) model, launched the x(3,3) mechanism, and its token $x 33 has become a ve(3, The new North Star in the 3) project.

VE(3,3) basic operations

Stake the native coin $Shadow of the Shadow platform to exchange for xShadow with voting rights. Hold xShadow to vote weekly and receive voting rewards (Voting Rewards) and recovery rewards (Rebase). Voting rewards come from platform fees and bribes. Recovery rewards come from xShadow that is forfeited by early exits.

VE(3,3) Disadvantages

The old version of the system generally requires a stake of 4 years, and it cannot be sold directly. The exit methods built into xShadow include immediate exit (Instant Exit) and timeline linear exit (Vested Exit). The former exchanges $Shadow at a rate of 1:0.5, while the latter redeems $Shadow at a rate of 1:1 after 180 days. Although there is some loss, it is still more reasonable than 4 years.

To provide users with a better experience, especially the liquidity of the stake coin xShadow, Shadow has released a new x(3,3) model.

$x33's liquid staking Token (LST) is aimed at

$x33 encapsulates xShadow, which cannot be traded in liquidity pools, and mints it into $x33 Token, becoming a liquid staking token (LST). After packaging, $x33 transforms into a liquid token that can be freely bought and sold on the market at any time. $x33 can be freely traded in the market, and its underlying xShadow not only has voting functionality but also continues to grow.

$x33, once recognized as an LST Token, can become a usable asset, commonly used in the lending market as collateral, and can also be utilized by other projects to generate alternative financial tools. Silo, Aave, Euler, and Pendle are typical examples of $x33 being applied as an LST.

The market value of $x33 is oriented towards

$x33 can be exchanged in the free market, so the market value of $x33 will also fluctuate with demand. Although the price of $x33 can rise or fall, it is worth mentioning that the 50% instant exit mechanism of xShadow sets a price floor for $x33 at (, which is 0.5 times $Shadow), while the upper limit is the conversion ratio between $x33 and xShadow.

$x33's xShadow is aimed at

$x33 The ontology is the xShadow that can be voted on. Each period, reinvestment and compound interest are applied, resulting in an increase in the amount of xShadow every week, and the intrinsic value also grows accordingly. This implies that the updated $x33 > xShadow exchange rate (Ratio) only increases and never decreases.

The advantages of $x33

With the liquidity encapsulation and automatic compounding ability of x(3 and 3) modules, $x 33 as a liquid staking token (LST) not only has asset liquidity, but the value of xShadow will grow over time, and it can also be used outside of Shadow DApp. The $x 33/xShadow exchange rate grows every cycle, which makes it easier for $x 33/$Shadow liquidity providers (LP) to set a position range.

The multi-faceted, highly flexible, multi-purpose, and price-guaranteed $x33 makes it a unique presence in the ve(3,3) space, while the innovation of $x33 brings new directions to the industry.