The Process of Redemption
The redemption process offers flexibility for exchanging between OXOA and isOXOA in either direction, and the rules depend on the redemption's direction.
Redeeming OXOA for isOXOA:
When redeeming OXOA for isOXOA, there are no penalties or restrictions, and the conversion ratio remains a constant 1:1 (100%).
Redeeming isOXOA for OXOA:
Redeeming isOXOA for OXOA involves an unlock period, with users choosing the duration. The conversion ratio increases proportionally with the redemption duration:
a 7-day duration results in a 1:0.1 ratio (10%)
a 30-day duration yields a 1:0.3 ratio (30%)
a 60-day duration offers a 1:0.5 ratio (50%)
a 90-day duration results in a 1:0.75 ratio (75%)
a 120-day duration results in a 1:1 ratio (100%)
When users stake $isOXOA into the conversion pool, the APY they receive is 10%.
If the selected duration is less than the maximum, a penalty amount of isOXOA is burned. Users have the freedom to cancel any isOXOA redemption process at any time, nullifying the entire process and recovering their entire isOXOA amount without receiving any OXOA.
The OXOA Foundation may reserve up to 50% of the potentially burned isOXOA to support the Network. During the redemption of isOXOA for OXOA, all isOXOA is automatically directed to the yield account, but only for 50% of its value.
Review the Roadmap to see when this functionality is available.
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