<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/fafd1398-9a57-421a-bcfc-095794f46267/Plenty_Liquidity_Provider_Token.png" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/fafd1398-9a57-421a-bcfc-095794f46267/Plenty_Liquidity_Provider_Token.png" width="40px" /> xPLENTY is a profit sharing mechanism inspired by the Sushibar of Sushi. xPLENTY is a flash loan resistant token and will be used for governance. Furthermore, xPLENTY is continuously compounding staking rewards and trading fees.


The xPLENTY token

xPLENTY is a token, similar to any Liquidity Provider (LP) token, that you receive in exchange for staking PLENTY. By default, the xPLENTY token is always worth more than the regular PLENTY token, because xPLENTY accrues value from platform fees and PLENTY staking rewards.

How does it work?


On Plenty a user can be a Trader, Liquidity Provider or PLENTY holder. When a Trader makes a trade on Plenty, a 0.35% fee is charged. The Liquidity Provider receives 0.25%, and 0.09% is added to a trading contract that will buy PLENTY, increasing the buying pressure for PLENTY. The newly purchased PLENTY is added as rewards to the staking pool (i.e., a single-sided AMM). All users staking PLENTY in this pool will earn their proportional share of the rewards distributed by the xPLENTY smart contracts. Because of the way xPLENTY is designed, the price of xPLENTY will increase with the value of PLENTY, and the value of one xPLENTY will always be greater than the value of one PLENTY.

How do I get my PLENTY back?

When you unstake, your xPLENTY is burned, and you will receive all the originally deposited PLENTY plus additional fees and staking rewards.

What about governance?

xPLENTY will be used for governance. In this way active users don’t have to “unstake” PLENTY to vote on proposals, which is another major advantage of implementing xPLENTY.