Those who are familiar with Equilibrium know that the xDOT lets users stake DOT for their favorite Polkadot parachain and receive fluid xDOT in return. Now xDOT offers real use cases that can be taken advantage of on Genshiro right now.
Meanwhile, we’ve already distributed xDOT to users who participated in Equilibrium’s crowdloan via xDOT. As Equilibrium has won the slot and is becoming a Polkadot parachain, users got their xDOT at the rate of 1 xDOT per DOT they contributed.
Voters can find it in the Genshiro application after connecting their wallet and enjoy its liquidity. While some users only get their locked DOT back after the parachain lease period, xDOT users receive xDOT and can earn with it.
So right now xDOT could be used for two interesting use cases:
- To stake and earn interest
- To use as a collateral for borrowing other assets and using them in Genshiro’s liquidity bootstrap event to get up to 150% APR
Check out the step-by-step guides for each use case below.
How to stake xDOT and earn interest
- Visit the Genshiro app by clicking on “Application” in the upper right corner here: https://genshiro.equilibrium.io/en
2. Connect your wallet by pressing the “Connect” button. If you’ve already connected your wallet, you can skip this step
3. In order to check your xDOT balance, just click on the wallet icon in the upper right corner
4. The next step is to deposit your xDOT into our bailout pool. All you have to do is click on the “Earn” tab located in the header of Genshiro app.
5. Once you’ve moved to the “Earn” tab, click on the “Deposit” button located to your left and select xDOT1/2/3/etc* (depending on which one you’ve got), type the desired amount, and sign the transaction. One thing to note: we require a minimum deposit of $1,000 USD to become a bailsman. But since we support portfolio staking, you can compose several assets in your portfolio.
6. You’re all set! Time to start collecting rewards. Don’t forget to read our article that covers bailsman mechanics and how they work: https://bit.ly/GensBailoutGuide
How to use xDOT as collateral for borrowing other assets and using them in the liquidity bootstrap event
You can use xDOT as collateral to borrow assets and even deposit them into the Genshiro liquidity pool to get APR up to 150%. Here’s how:
- Visit the Genshiro app by clicking on the “Application” in the upper right corner here: https://genshiro.equilibrium.io/en
- Connect your wallet by pressing the “Connect” button. If you’ve already connected your wallet, you can skip this step.
- In order to check your xDOT balance, just click on the wallet icon located in the upper righthand corner.
- The next step will be to deposit your xDOT as collateral. In order to do this, you need to click on the “Borrow” tab, then click on the “Deposit” button located to your left, select xDOT1/2/3/etc* and calculate your desired portfolio LTV.
- Current LTV values are:
- = 120% LTV — minimum LTV possible on Genshiro
- ≤ 110% LTV — 24 hour warning, then liquidation
- < 105% LTV — absolute liquidation
5. Now you can start borrowing the desired asset and depositing it into the liquidity pool. Just click on “Borrow” located to your right, select any asset currently eligible for locking in our MM or bailout pool (KSM, BNB, EQD, GENS, ETH), and borrow it.
6. You will see borrowed assets in your wallet immediately. The next step will be to go to the “Liquidity provider” tab, click on “Add liquidity” in your desired pool, select a lock period (for MM pool), and enjoy increased rewards.
xDOT1/2/3/etc* — the number after xDOT indicates the crowdloan batch number. xDOT1 relates to all projects that won their slots during the first batch, xDOT2 relates to the second, and so on.
That’s it! You’ll get increased rewards.
About Equilibrium and Genshiro
Equilibrium is a cross-chain DeFi super-app that allows for cross-chain borrowing and trading digital assets with high leverage. It combines a money market with the lowest collateral requirements ever and an orderbook DEX with leverage up to 20X.
Genshiro is a Kusama-based sister-chain for Equilibrium. It’s the protocol that helps users seamlessly earn yield, borrow, and trade on margin. Using asset portfolios instead of single collateral vaults.
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How To Use Your xDOT Right Now was originally published in Equilibrium on Medium, where people are continuing the conversation by highlighting and responding to this story.
