The next big thing in MultiversX DeFi is coming
XOXNO is launching noble liquid staking and... something else that can reshape the DeFi space on MultiversX as we know it.
XOXNO has just launched their noble liquid staking system! But why is it special - and more importantly, what is yet to come? 👀
Let’s dive into how XOXNO will revolutionize DeFi on MultiversX and innovate in the general DeFi space too. What they will bring in the near future is ahead of 95% of comparable DeFi dApps. 🫢
XEGLD - Brand new, noble liquid staking
XEGLD is the latest competitor in the MultiversX liquid staking market. Compared to other existing solutions, it improves on the aspects of decentralization, capital efficiency, stability for validators, fairness and arguably also ease of use. Let’s dive in!
General Overview
XEGLD by XOXNO is an innovative Liquid Staking Derivative (LSD).
You can mint it with EGLD, and you will receive XEGLD for it, according to the current ratio shown on the website.
XEGLD is a value accuring liquid staking token, meaning all the staking rewards are being automatically reinvested for maximum capital efficiency and are therefore leading to an increase in XEGLDs value (relative to EGLD).
This is quite similar to how other LSDs work, so far.
Obviously, you can use it to provide liquidity to pools, use it in DeFi, transfer it between wallets, lend it out as well as use it as collateral to borrow against (soon 👀).
However, there is much more to it.
Improvements Towards Decentralization and Fairness
Let’s tackle those two topics right away! How is XEGLD fair and helps decentralization?
As of right now, the EGLD staked in the XEGLD LSD are staked towards 60 different validation services.
The following aspects will lead to a validator receiving proportionally more delegated EGLD and being de-prioritized in unstaking scenarios from the XEGLD LSD:
Having a high APY
Having a low number of nodes
Having a smaller total stake size
Meaning, if XOXNO’s XEGLD does not delegate a lot to you, then the validators ‘importance’ for receiving new delegations will rise
And the following aspects will lead to a validator receiving less delegation from XEGLD and furthermore to a prioritized unstaking position:
Being a validator with lots of nodes
Having a low APY (e.g. due to many nodes being ineligible of participating in consensus)
Having a large stake size
Meaning XOXNO delegated a lot to you relative to other providers
So if a validator fits into the upper category, a lot more EGLD will be delegated to his validation service and in case of users unstaking their XEGLD, his validatior is less affected by unstaking events.
But if you fit into the lower bracket, then you will not see as many EGLD delegated towards you and in case XEGLD get unstaked, more EGLD will be unstaked from you (prioritized) than from other providers.
What’s even more special, XOXNO also applies an exponential boost to both APY and node/stake metrics, magnifying even just small differences and encouraging these behaviors aligned with each mode. This highly benefits providers with fewer nodes, higher yield, and sensible stakes even more—supporting both decentralization and maximized rewards. In case of unstaking, providers with bigger footprints and more conservative yields will be favored instead (EGLD will be undelegated from them with priority). This ensures an adaptable, fair system that responds smoothly to changing user needs in the DeFi space.
Stability for Validators
This will be a short section, as it is simple to explain.
Assume someone owns a boat load of XEGLD. 100000 XEGLD.
Unstaking 100k EGLD from a single validator can kill many nodes that he runs. So what happens if you unstake 100000 XEGLD?
The XEGLD will not be unstaked in a way that a single provider is massively damaged. Instead, the EGLD are unstaked among all providers.
However, as explained previously, not every validator is affected by the unstaking scenario equally. Those who already have a lot of delegation and have a low APY or a large number of nodes will see more EGLD unstaked from them than smaller providers.
This ultimately leads to smaller and more effective providers being less affected than larger ones, contributing to fairness factor of XEGLD.
Capital Efficiency + Even More Validator Stability
How do you optimize a liquid staking protocol? The XOXNO team asked themselves this question and figured out one interesting aspect that not many protocols embedded yet.
Assume someone staked EGLD for XEGLD at the protocol. Why would the protocol need to immediatelly stake those EGLD? Well. It doesn’t. Rewards are only paid out after the epoch change.
What XOXNO does is: they do not immediatelly stake all the new EGLD, instead, only shortly before the epoch change, the EGLD are staked towards the validators according to their weighting.
So until those EGLD are staked, they are just kept in the smart contract and ready for something special: They are ready for unstaking requests!
If someone unstakes XEGLD, they will be able to unstake a part or even everything (if enough EGLD are held in the smart contract) instantly! If only a part is being unstaked instantly (due to not enough EGLD in the smart contract), the other part is unstaked normally and can be claimed by the user after 10 days.
In that scenario, the user is also given an unstaking ESDT (based on a META-ESDT) which they can trade, send between wallets and more. This acts as a receipt, acts as ownership over the unstaking position.
Once the unstaking is complete, the user will return the receipt to the protocol and get back the unstaked EGLD.
Ready to try it out? There is one more thing…
Soon, another huge feature will drop. The single most technically advanced money market on MultiversX. In short: Money Markets are what is more commonly known as lending&borrowing. XOXNO has really taken the concept of Money Markets to their limit and beyond. More on that in a future post 👀. For now: just imagine AAVEv4 (which didn’t even release yet) but even better than that!
If you want to try out XEGLD, XOXNO’s innovative liquid staking, head over to XOXNO DeFi and either stake your EGLD or, for the stake of ease of use, migrate your existing liquid staking tokens from other providers!
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