How To Work With xCORAL
The primary way of using xCORAL is buying & holding it. We suggest to think of xCORAL as a substitute of your liquid cash and its surrogates, including stablecoins. Unlike stablecoins that are tied to US Dollar, xCORAL is not prone to inflation and is designed to have its value constantly appreciating as time goes by.
The price of xCORAL is guaranteed to constantly appreciate because of how rebases are designed (see above). Thus, investing in xCORAL is risk-free.
For the purposes of keeping interests of all investors aligned, we impose restrictions on how quickly tokens can be liquidated — we call it Automated Bank Run Prevention. We allow a given wallet to liquidate up to 10% of their bag during their first sell, up to 13% during their second sell (multiplied by 1.3), up to 17% during their third sell, and so on. Additionally, a time-based sales tax of 1–40% is imposed when tokens are liquidated within 10 days of purchasing them.
This is done so that to prevent whales and early investors from dumping the tokens shortly after buying them while hurting the project.
Refer to the xCORAL Documentation below to learn more about how protocol operates under the hood.
How rebases work
xCORAL is designed to be an always-appreciating token. Its price will exceed bitcoin by the end of 2021. Rebases are normally conducted every 10 hours, but initially could be done more frequently to avoid abrupt price swings.
Floor Price
Floor price is a price that xCORAL cannot fall below. Floor price can only go higher with time, not lower. The pace of how fast the floor price appreciates depends, but can never be less than a certain minimum APY enforced by the monetary policy. In reality, the xCORAL price appreciation will be much faster than the minimum APY in place.
Rebase Logic
During each rebase the following logic is used to determine how xCORAL price is to be adjusted:
- If current xCORAL price is above the price that was in place during last rebase (normally 10 hours ago), the price is not adjusted, and the floor price is updated to match the current price. This means that from now on, the price of xCORAL can never fall below the current price (floor price).
- If, however, current xCORAL price is below the price that was in place during last rebase, the price is adjusted to match the floor price (which is the last rebase price) multiplied by a factor needed to match the designed minimum APY.
As described above, xCORAL price can never be down, and is designed to constantly appreciate in value to generate at least minimum APY.
Buying and holding xCORAL is the best possible strategy, as the price always keeps increasing
