Post
Topic
Board Tokens (Altcoins)
Re: [ANN] ⚡ OnX Finance, The First DeFi Hub For Collateralized Tokens ⚡
by
invincible49
on 19/01/2021, 12:11:06 UTC
i don't really understand how this privilege pool work, can you explain me with a simple explanations ?
regards
Privilege pool is basically OnX staking without any involvement of any other tokens. It is different from liquidity farming. When you stake your OnX, you get the equivalent in sOnX, which represents your shares of OnX in real time. As more time goes on, OnX is added to the privilege pool externally, either from the 1x pool (for now from farming pool), or in the future from the lending contract and other products! This makes the value of sOnX shares worth more, think of them like coupons that are not tradeable. You can only see the OnX increment in OnX number in the tab of https://app.onx.finance/staking.

Quote
When fees are taken from products on the OnX.Finance platform, a portion of these fees are used to market buy ONX and distribute it to the Privilege Pool. For instance, with lending, a portion of the interest collected will be set aside to market buy ONX which will then be distributed to the Privilege Pool. To start the staking rewards, a 1X farming pool is going to be sending ONX to the staking contract every 12 hours.
Reference: https://onxfinance.medium.com/onx-staking-privilege-pool-6e9dfb0b5c22