xKDK Conversion & Redemption

Converting & redeeming xKDK.

KDK and xKDK offer a unique mutual convertibility, but the conversion process varies depending on the direction chosen.

KDK -> xKDK Conversion

At any given moment, KDK can be instantaneously converted into xKDK at a 1:1 ratio.

xKDK -> KDK Redemption

The redemption process for converting xKDK to KDK incorporates a vesting feature, allowing users to customize the vesting duration based on their preferences. The conversion ratio will increase proportionally with the vesting duration:

• The minimum vesting duration of 15 days will provide a 1:0.5 ratio

• The maximum vesting duration of 6 months (180 days) will provide a 1:1 ratio

If the selected vesting duration is lower than the maximum (ratio < 1:1), the unclaimed excess KDK is burned.

Protocol Rewards Utility Module Allocation

During the redemption process, the xKDK undergoing redemption is automatically allocated to the Protocol Rewards Utility Module, but only for 50% of its value.

For instance, if a user was to redeem 1000 xKDK, he would earn protocol rewards as if he actually allocated 500 of them to the Protocol Rewards Utility Module.

This allocation is automatically cancelled once the vesting duration has ended.

Cancel Redemption

Users have the freedom to interrupt any xKDK redemption process at their discretion, allowing them to cancel it before completion.

However, if a redemption is cancelled before its scheduled end, the entire process will be voided. In such cases, the user will retrieve their entire amount of xKDK intended for redemption, but no KDK tokens will be received.