esLEX is distributed to staking pool participants.
esLEX is non-liquid, non-transferrable LEX that can be used in two ways:
- 1.Staked to receive the same rewards as a regular LEX token (fees, esLEX)
- 2.Vested for 12 months to become actual LEX tokens
esLEX has the effect of giving higher returns to long-term stakers, who can be seen as Lexer's committed users qualified to make major decisions regarding the protocol's future. The longer and the more you stake, the larger share of fees you take. The value of esLEX comes from these accumulating rewards over time. This aligns the interests of Lexer Markets and our token holders for long-term growth. read more here
esLEX that have not been staked can be vested to be redeemed as LEX. When you initiate vesting, your esLEX will be linearly converted into LEX every second and will fully vest at the end of 12 months.
Vesting requires "reserving", or locking, into the vesting vault the staked LEX, the average amount of LEX or vault tokens with which you acquired the esLEX. LEX tokens and LP tokens can be used for the required amount.
For example, if you staked 1000 LEX and earned 100 esLEX tokens, then to vest 100 esLEX tokens, 1000 LEX tokens will be reserved. To vest 50 esLEX, 500 LEX tokens (or equivalent LP tokens) will be reserved. Note that this is an example and the actual ratio depends on the average staked amount and rewards earned for your account.
Staked tokens that are reserved in the vesting vault will continue to earn rewards. Note that you will not be able to unstake the tokens while they are reserved.