Staked TAROT (xTAROT) is the gateway for on-chain governance of the Tarot Protocol.
With xTAROT, stakeholders will govern and shape the future of Tarot. This includes the ongoing maintenance of key parameters, fees, and rates in the Tarot Protocol, as well as determining the distribution of fees accrued to the protocol reserves.
Staking TAROT for xTAROT offers the following benefits:
- Earn TAROT rewards from protocol revenue through the xTAROT-TAROT Distribution Interlink
- Enhanced yield by supplying staked TAROT in lending pools
- Increased liquidity across multiple lending pools
- Collateralization via the composable xTAROT token
- Participation in Tarot DAO governance
- Stake xTAROT in partner-incentivized pools for additional rewards
With the launch of xTAROT, ongoing fees accrued to the Tarot Protocol will be used to buy back and distribute TAROT rewards to xTAROT holders as follows:
- 50% → Remain in protocol reserves (as bTAROT and tTokens)
- 50% → Buy back and distribute TAROT to xTAROT holders
The fees accrued to the Tarot Protocol prior to the launch of xTAROT will remain in protocol reserves (as bTAROT) for future opportunities. The strategy for reserve management, as well as future adjustments to the distribution of ongoing fees, will be at the discretion of protocol governance.
TAROT token holders can stake TAROT to receive xTAROT, which represents a share of the xTAROT staking pool. xTAROT is auto-compounding, so the xTAROT/TAROT exchange rate increases over time as staked TAROT is supplied to multiple lending pools, and further increases as protocol fees are used to buy back and distribute additional TAROT rewards to xTAROT holders through the xTAROT-TAROT Distribution Interlink.
Since xTAROT is like a receipt, you can later unstake xTAROT for your share of the underlying TAROT balance at the prevailing exchange rate. Rewards are distributed to the xTAROT staking pool over time, so the share of TAROT rewards will continue to increase simply by holding xTAROT.
With xStaking, xTAROT holders have the opportunity to stake xTAROT and earn additional tokens from partner-incentivized staking pools over time.
xStaking enables xTAROT holders to:
- Continue to earn TAROT through the xTAROT-TAROT Distribution Interlink
- Participate in Tarot DAO governance through xTAROT
- Earn additional yield from xStaking pool token rewards
Behind the scenes, the xTAROT staking pool works like a Tarot Supply Vault, but with no performance fee. Rather, a portion of the ongoing performance fees from Tarot Supply Vaults is used to buy back and distribute TAROT rewards to xTAROT holders.
More information on xTAROT staking and governance can be found on Medium: