Xpool Introduced The Official Release Of Incentive Module

This incentive module expects to optimize for the long term growth of Xpool, especially bring more benefits to our community — which is the core of Xpool’s development as it is today, and to express our growth strategy in providing a reputable DeFi platform for Crypto — related borrowing and lending activities in the near future.

Incentive module can accomplish the following targets:

• Increase lending and borrowing activities in specific markets.
• This function will drive lending and borrowing activity across markets because distributing XPO to borrowers and lenders acts as an added incentive that attracts more capital in the target market.
• Further decentralize/expand the XPO token holder base
• Rewarding XPO to protocol users enhances the spread of the XPO token. This increases the number of users who have access to XPO, thereby decentralizing the protocol.
• 3Increase long-term capital pools through stk XPO distribution.
• To align long-term incentives, disincentivize speculative farmers, and allow users to receive an underlying yield on top of the XPO they earn, stkXPO will be paid instead of XPO. This helps to align LPs by giving them greater governance weight up front, and it also helps to protect the protocol by raising the amount of XPO staked in the Safety Module. LPs are then paid a staking yield on their vested XPO.

Those stkXPO rewarded from Incentive Module require a 10 day cooldown period. Users have to activate cooldown before unstaking their XPO. After the cooldown period, there is a 2 days window for stalkers to unstake their XPO. By distributing rewards in stkXPO, borrowers and lenders are immediately aligned with the protocol, raising the security stake while earning a yield on their XPO rewards.

Regarding the beyond benefit of the incentive module, they introduce the initial distribution within 60 days through 6 target market below:

When Xpool users make transactions for lending or borrowing on the Xpool platform, they will receive XPO reward. 20,000 stk XPO will be allocated to 6 markets and split to lenders and borrowers with a different rate in each market.

Source:
https://xpool.medium.com/introduction-about-incentive-module-8a55c5cdee26