xToken - Bridge ETH And Mint xToken Products

xToken - Bridge ETH And Mint xToken Products

Primer — xToken is an Ethereum-based DeFi protocol that wraps complicated staking and liquidity strategies across top DeFi protocols like Aave, Synthetix, and Bancor into convenient and composable set-and-forget ERC20 tokens. xTokens are free-floating ERC20s that can be sent from wallet to wallet, added to liquidity pools and pledged as collateral for loans. From automated re-investments in Uniswap v3 pools to auto-compounding in popular DeFi staking modules, xToken is a one-stop-shop for passive token holders looking to put their funds to work and participate in governance while abstracting away the need for active management. They save users time and money, and they distill intricate token mechanics into simple buy-and-hold strategies while providing an opinionated governance option for users.

Introduction

Ethereum’s wide acceptance across the DeFi world is also its nemesis. The high gas fee on Ethereum makes it less attractive especially for retail and small investors. Naturally, projects are expanding to find new resting homes and L2 chains for one are attracting a lot of projects. xToken has also followed the suit and landed on Arbitrum. This was done with key partnerships in focus aimed to engage the x-Token community and the DeFi community at large. Arbitrum is a layer-2 solution that executes transactions outside the Ethereum Mainnet but posts the transaction data on it, retaining the security provided by Layer 1.

Bridging Assets

Assets can be transferred or bridged from Ethereum Mainnet to Arbitrum using various bridging options like Hop, FundMovr, Celer bridge, or the Arbitrum bridge.

This essentially entails two steps considering you an ETH balance to transfer and pay for the gas fee —


1. Add Arbitrum To Your Wallet — The easiest way of doing it is by heading on to Chainlist. Search for Arbitrum and click on add Arbitrum One.

2. Bridge The Assets — Before you bridge other assets, it makes sense to have some ETH on Arbitrum to eventually pay for the gas for any sort of transaction. In order to transfer ETH, enter the amount, click on deposit and approve the transaction. It can take anywhere up to an hour for your funds to show up depending on the network congestion.

Minting xU3LP or xToken Leverage Tokens

With the launch of x-Token on Arbitrum, there are at present three products that have been launched –

  1. xToken Lending — This is a simplistic lending protocol where users deposit the collateral and borrow USDC against it. There are only three vanilla options WETH, WBTC and LINK.
  2. xAssetLev — xAssetLev lets users leverage long a token without needing to manage any complex strategies or parameters. At present, there are xETH3x and xBTC3x that gives users a 3x long exposure.
  3. xU3LP — This brings Uniswap V3 liquidity strategies to L2. This wraps like-for-like trading pairs (e.g., stablecoin-to-stablecoin), providing investors sustainable yield with minimal risk of impermanent loss. It has xU3LPa (USDT<>USDC) and xU3LPb (DAI<>USDC)

GM-GA-GN NFTs

Created by BingoBongoPlinkoPlonko, GM/GA/GN/WAGMI NFT collection is open to be minted for nearly 75k addresses that had interacted with xToken as well as a variety of other DeFi and NFT communities (addresses that own tokens like YFI and INDEX, staked tokens like MAGIC, CRV, VISR and THALES, borrowed on Aave and Compound and traded on Lyra). The snapshot date was Nov 22.

There are 4000 items in each of the GM, GA and GN sets and 500 total in the WAGMI set. All NFTs in the set are unique, generated via 1000+ different properties. Each of the GM/GA/GN items can be minted for free via participation in xToken products on Arbitrum. WAGMI pieces can be earned by being a XTK-WETH LP on Arbitrum Sushiswap.


How To Mint The NFTs

Only whitelisted addresses will be able to mint these NFTs. Let’s go ahead and walk through the steps to mint these NFTs.

Log on to xtoken.market and connect the wallet using the Arbitrum network.

GM (Good Morning) NFTs — An exclusive edition with 4,000 unique pieces of artwork, featuring a light “morning” color palette, GM-themed sticker messages and some sweet treats that might get served up for breakfast.

  • Head on to the xU3LP funds on the Invest table.
  • Mint >500 xU3LPa or xU3LPb tokens. You’ll need one of the stablecoin inputs for these funds to mint xU3LP.
  • Open the NFT experience modal and you will be given the option to mint GM (considering the wallet is whitelisted).
  • Click on Mint and approve the transaction.

GA (Good Afternoon) NFTs — An exclusive edition with 4,000 unique pieces of artwork, featuring a vibrant “midday” color palette, GA-themed sticker messages and ice treats for those liquid lunch sessions.

  • Head on to the Lending tab.
  • Deposit enough collateral through WETH, WBTC, or LINK to take out a loan of atleast $500 USDC (most likely $750 in collateral).
  • Open the NFT experience modal and you will be given the option to mint GA (considering the wallet is whitelisted).
  • Click on Mint and approve the transaction.

GN (Good Night) NFTs — An exclusive edition with 4,000 unique pieces of artwork, featuring a darker “evening” color palette, GN-themed sticker messages and bright night-life lights.

  • Head on to the Leverage tab on the Invest table.
  • Mint more than 500 xETH3x or xBTC3x tokens. You’ll need either ETH or WETH/WBTC to mint.
  • Open the NFT experience modal and you will be given the option to mint GN (considering the wallet is whitelisted).
  • Click on Mint and approve the transaction.

WAGMI NFTs — An exclusive, collectible edition with 500 unique pieces of artwork, bringing together ALL the traits and color schemes of the entire collection.

  • Provide >$3000 of XTK-WETH liquidity on Sushiswap Arbitrum and maintain it for at least two weeks.
  • 10 WAGMIs will be distributed per day on a rolling basis, first come first serve.

XToken is in the process of migrating to xToken 2.0. It will be a strategic shift as far as product emphasis and alignment is concerned and is expected to be completed around the end of Q1 2022. The emphasis will be on scalable and permissionless products, platforms and protocols compared to the customized, management-heavy fund strategies that it currently offers. The team calls it a new beginning implementing all the learnings so far. For us, we can’t wait to see how it all unfolds.

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