xPARS Token

The liquid staking receipt token for PARS, representing your share of the staking pool and accrued yield.

xPARS Token (Staked PARS)

xPARS is the liquid staking receipt token for PARS. When you stake PARS, you receive xPARS representing your share of the staking pool and its accrued yield.

Token Specifications

How xPARS Works

Staking Mechanism

When you stake PARS, you deposit into the staking contract and receive xPARS:

┌─────────────────────────────────────────────────────────────────┐
│                    STAKING FLOW                                  │
├─────────────────────────────────────────────────────────────────┤
│                                                                  │
│   User              Staking Contract          xPARS Token        │
│     │                     │                        │             │
│     │  1. Stake PARS      │                        │             │
│     │ ───────────────────►│                        │             │
│     │                     │  2. Mint xPARS         │             │
│     │                     │───────────────────────►│             │
│     │                     │                        │             │
│     │  3. Receive xPARS   │                        │             │
│     │ ◄────────────────────────────────────────────│             │
│     │                     │                        │             │
│                                                                  │
└─────────────────────────────────────────────────────────────────┘

Exchange Rate

xPARS appreciates against PARS as yield accrues:

xPARS_value = PARS_in_staking_pool / xPARS_total_supply

Yield Sources

xPARS holders earn yield from:

Staking vs. Historical Rebasing

Legacy Context

The original implementation of similar protocols used rebasing tokens (like sOHM) that increased token count to reflect staking growth. This caused confusion as price charts showed misleading declines.

xPARS Approach

xPARS uses the exchange rate model instead:

Index-Adjusted Metrics

For historical comparison with rebasing systems:

index = xPARS_to_PARS_rate × historical_conversion_factor

This allows comparison of returns across different time periods.

Staking Operations

Stake (Mint xPARS)

interface IStaking {
    /// @notice Stake PARS and receive xPARS
    /// @param amount Amount of PARS to stake
    /// @return xPARSAmount Amount of xPARS received
    function stake(uint256 amount) external returns (uint256 xPARSAmount);
}

Steps:

1. Approve PARS spending on staking contract
2. Call stake() with desired amount
3. Receive xPARS at current exchange rate

Unstake (Redeem PARS)

interface IStaking {
    /// @notice Unstake xPARS and receive PARS
    /// @param xPARSAmount Amount of xPARS to redeem
    /// @return parsAmount Amount of PARS received
    function unstake(uint256 xPARSAmount) external returns (uint256 parsAmount);
}

Steps:

1. Call unstake() with xPARS amount
2. Receive PARS at current exchange rate
3. xPARS is burned

No Lock-Up Period

xPARS has no mandatory lock:

• Stake and unstake at any time
• No penalties for early withdrawal
• Yield accrues immediately upon staking

xPARS Use Cases

Liquid Collateral

Use xPARS as collateral for Advances:

• Deposit xPARS into Advance facility
• Borrow stablecoins against position
• Yield continues accruing while collateralized
• No price-based liquidations

DeFi Composability

xPARS is a standard ERC-20 and works with:

Governance Participation

While xPARS itself has no voting power, it can be:

• Wrapped to vePARS for governance
• Used in MIGA governance on Solana (via bridge)

Yield Calculation

Current APY

Yield is distributed continuously and compounds automatically:

APY = (yearly_protocol_revenue / total_staked_PARS) × 100%

View current APY on the protocol dashboard.

Historical Returns

Yield Distribution

Yield is distributed to the staking pool:

• No manual claiming required
• Automatically reflected in exchange rate
• Compounds continuously

Risk Considerations

Smart Contract Risk

• Staking contract is audited
• Bug bounty program active
• Users should review contracts

Yield Variability

• APY fluctuates with protocol activity
• No guaranteed returns
• Historical returns don't predict future

Price Risk

• xPARS value tied to PARS price
• Protocol stability mechanisms mitigate but don't eliminate volatility

Contract Addresses

Related Documentation

• PARS Token – Native token overview
• vePARS Token – Governance token
• Treasury – Yield sources