xEBA is an EBA derivative that users can receive after staking EBA tokens into the Ancient Tree pool. When holding xEBA, users automatically receive compound staking rewards. Thus, xEBA tokens are always more valuable than regular EBA tokens because they constantly accumulate the value of EBA tokens from staking.
After applying this mechanism, the price of xEBA is expected to increase corresponding to the value of EBA, and will always be higher than the price of EBA.
Why xEBA necessary?
With the recent mechanism of EBA staking pool, stakers can only receive is EBA rewards that are distributed over time. The token claim function hasn’t been completed yet. In other words, xEBA hasn’t been assigned any prioritized voting right for future proposals.
Nevertheless, Elpis DAO will use xEBA as a vote in the coming time. As a result, only stakers can participate in voting proposals with their xEBA.
Unstake xEBA take back EBA
When stakers want to take back EBA, they can unstake xEBA to restore their EBA. However, there will be a fixed lock-in period of 14 days. So they need to wait at least 14 days to restore EBA to their wallets after unstaking xEBA.
If the users decide to unstake xEBA during the EBA vesting period, the countdown will be reset to 14 days including the previous amount of unstaked EBA.
Why is my xEBA balance lower than my EBA balance?
When you stake your EBA tokens, you “purchase” a share of the xEBA pool. Because xEBA appreciates in value compared to EBA, the amount of xEBA you get for your EBA decreases overtime.
What if I sent my xEBA tokens to another wallet address?
xEBA represents token ownership in the EBA stake pool. So if you sent your xEBA tokens to a new wallet address, the old wallet address will no longer have the access to the staked EBA in the pool. Instead, this permission is transferred to the new wallet address that owns xEBA.