XSteak and XScream

xSTEAK and xSCREAM

One of the problems we have been seeing is the understanding of the
xTOKEN model (xSCREAM and xSTEAK). It is actually pretty simple once the
gears start turning, but first you need to understand this is a staking token,
but it’s not your normal staking where you receive rewards directly and you
can harvest. This model takes apart that sell pressure caused by instant sell
of the rewards and makes the normal consumer hold the token since the
longer they maintain their position the better the rewards are.

Here’s an explanation of how the model works and how rewards are given:

1º The rewards aren’t given directly to you, the rewards are in the Rate of
exchange you can trade xSCREAM/xSTEAK for SCREAM/STEAK and Vice
Versa.
2º The rate of exchange gets higher depending on the fees generated and
distributed to the xSCREAM/xSTEAK contract
3ºSimply, the xSCREAM/xSTEAK is just a receipt for how much of the normal
token you can take back from the pool

For this example, I will use StakeSteak (xSTEAK) given StakeSteak first
started this model on FTM Network:
At the Beginning of our launch, we had that the Rate of change would be 1
Steak for Each 1 xSTEAK

RATE: 1.000000000000

1 Steak 1 XSteak
From this example we can see that it takes 1 STEAK to mint 1 xSTEAK and
the opposite also happens, so if you unstake 1 xSTEAK in the pool you will
receive 1 SSTEAK.

With time and the fees sent to the pool (will explain in a bit how these fees
are generated) this rate of exchange, per xSCREAM/xSTEAK, changes.

After 2 months of STEAK fees sent to the pool, we now have a rate of
Change of around 1.48 steak per 1 xSTEAK, meaning that 1 xSTEAK can
now trade back to 1.48 STEAK and in order to mint 1 xSTEAK you would
need 1.48 STEAK.

RATE: 1.480000000

1.48 Steak 1 XSteak

How do these fees happen?

Both xSTEAK and xSCREAM gain fees from their farm rewards. About 10%
of the rewards generated by the Farm will be sent to the pool, and these
rewards don’t mint xTOKEN, basically they enter and are divided into all the
possible xTOKEN holders.

It will be easier to explain via Pictures, so let’s make another one:

TOKEN = STEAK or SCREAM tokens
xTOKEN = xSTEAK or xSCREAM

This example will just use that every person just stakes 1 token in the pool
and receives 1 xTOKEN since the rate of change is at a 1=1. So they
 USER 1 USER 2 USER 3
1 Xtoken 1 Xtoken 1 Xtoken

Staking Pool
5 tokens

USER 4 USER 5
1 Xtoken 1 Xtoken

If we let these pools stay like this it wouldn’t make a change since every
person can take the exact same amount out, so in order for the value and
rate go up, fees from the farms are sent into this pool, meaning the number
of tokens sent to the staking pool don’t mind nor have a “owner” so it
basically gets divided into ever xTOKEN Holders.
 The Fees!

The fees that are sent to these staking pools is 10% of all the rewards of the
farms (SCREAM-FTM LP for example) or (STEAK-iFUSD LP).
So let’s give an example that the 10% fees rewards fees is equal to 5 tokens,
we have the following event:

10% = 5 tokens as fees are sent to the Staking pool, meaning it

know will have 10 tokens in total instead of the 5

[Grab your reader’s attention with a great quote from the document or use this space to emphasize a key
point. To place this text box anywhere on the page, just drag it.]

Farms Staking Pool

10 Tokens
LP

This is a example don’t take the values seriously, this is only for an easy understanding.

So now we have 5 users that staked into the pool and added 5 tokens (1
each), but now there's 10 tokens in total inside the pool. Since the rewards
from the farms don’t have an owner, they will belong to every xTOKEN
holder. Those 5 extra tokens are now divided equally, and every user can
take out 2 tokens for their 1 xTOKEN staked before.
10 tokens/5users = 2 per user.
If more users would now want to enter that same staking pool they would
need to enter at the same rate meaning that they now would need 2 Tokens
to mint 1 xTOKEN, instead of the 1 token exchange rate that earlier users
got.
Also, the more the farms have liquidity the more the stakers also gain.
These Fees are usually sent once a day with no correct time in order for
people to not gamify these fees.
What’s the play? (Not Financial Advice).

Our StakeSteak users have been doing LP and whatever STEAK rewards
they get, they instantly put it to staking.

This model rewards the project and the users because it incentivizes hold of
the tokens.

However, the rewards are typically not as good as staking to STEAK-FTM or

SCREAM-FTM LPs into farms. This is because the LP tokens have additional
risks compared to xTOKEN staking. TOKEN-FTM has price exposure to two
tokens and there is also impermanent loss risk. Thus, TOKEN-FTM has better
rewards but is more risky compared to xTOKEN.
This Model Rewards the project and the users because it incentivizes hold of
the tokens.

Hope this Has helped, we tried to make it as simple as possible so that

everyone understands. Some people are new and most terms can be tricky
to understand.

If you need anymore help you can go to ours discords servers:

StakeSteak: https://discord.gg/NV7jdzFH
Scream: https://discord.gg/5TcWWJ2c

You can Tag me @Shien110 if you need any help or if there was anything not
fully comprehensible.