♾️Conversion / Redemption

$PRY and xPRY are convertible through a conversion mechanism with different rules correlated to the direction of the conversion.

The conversion process occurs on the staking page, for which the direct link can be found below:


$PRY to xPRY Conversion

Frictionless and instantaneous, the $PRY -> xPRY conversion doesn't have any particular constraint and is based on a 1:1 ratio.

Ex: You want to convert 10 $PRY, you receive 10 xPRY.

xPRY to $PRY conversion

Due to its nature, xPRY has a major and essential role in the everyday life of our protocol. To incentivize xPRY holders to allocate their tokens for a good amount of time to the different plugins offered, the xPRY token is subjected to vesting mechanisms.

The vesting period implies different ratios impacting the conversion process output:

  • Minimum vesting period: 15 days - ratio 1:0.5 (for 5 xPRY, user will get 2.5 $PRY)

  • Maximum vesting period: 6 months - ratio 1 (for 5 xPRY, user will get 5 $PRY)

For any vesting period under 6 months (ratio < 1:1) the remaining xPRY tokens are burned. For example, for the minimum vesting period of 15 days and 5 xPRY, the user will get back 2.5 $PRY, and 2.5 xPRY will be burned, reducing the $PRY circulating supply.

Vesting ratio formula : 0.5 + (0.5 * ( Nb of days / 180))

If the selected vesting duration is lower than 6 months (ratio < 1:1), the unredeemable amount of xPRY during the xPRY to PRY conversion process is going to be burned, decreasing the $PRY circulating supply.

Rewards during the xPRY to $PRY conversion

During the redemption period, the amount of xPRY concerned by the redeem process will be automatically allocated to the Locked Staking Module, and the owner will get only 50% of the expected rewards. The remaining 50% rewards will be shared amongst the xPRY stakers who allocated to the dividend plugin.

The redeem process reduces the rewards of the user by 50%. This reduction benefits the other users of the plugin concerned by allowing them to share the remaing rewards (50%).

Concrete example

I own 3000 $PRY. I decide to convert them to xPRY in order to be able to allocate them to the Dividends Plugin. After 2 months of collecting rewards, I want to convert back my xPRY to $PRY. At this moment, I have to choose a vesting period based on the conversion process ratio explained above. This vesting period is the redemption period.

If I choose a 6 months vesting period, I'll get back the same amount of $PRY. In this example, 3000 $PRY.

If I want to get my $PRY back right after only 15 days of vesting, I will only get 50% of my initial deposit, 1500 $PRY.

Between the 15 days vesting period with a ratio of 1:0.5 and the 6 months vesting period with a ratio of 1:1, a linear curve is used to calculate the evolution of this conversion ratio.

Please refer to the vesting ratio formula above if you want to know precisely what ratio will be applied based on the vesting period chosen.

During this vesting period or redemption period, I will only get 50% of the rewards I used to retrieve before deciding to start the redemption. For this entire redemption period, the others 50% are going to be distributed to all the investors who have decided to allocate their xPRY to the same plugin as me.

At the end of the redemption period, and if i've chosen a vesting or redemption period lower than 6 months, the remaining xPRY lost will be burned and the $PRY circulating supply will decrease subsequently.

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