💰SCALES / xSCALES

SCALES: Empowering Participation and Revenue Sharing

Introducing SCALES, the versatile governance token powering the SolidLizard Lending protocol. At its inception, SCALES primarily facilitates revenue sharing, a cornerstone feature of our platform. As SolidLizard Lending evolves, we envision transitioning into a Decentralized Autonomous Organization (DAO), where SCALES serves as a potent voting mechanism, adhering to the principle of "1 SCALES = 1 vote."

Unlocking Revenue Streams

SCALES holds intrinsic value within our lending ecosystem, granting access to diverse revenue streams. Our focus remains steadfast on the project's long-term sustainability while incentivizing our loyal holders. SCALES holders enjoy a myriad of benefits, including:

1. Providing liquidity to the SolidLizard DEX

2. Locking SCALES in SolidLizard Lending to claim a share of the protocol's revenue, alongside multiple additional revenue sources such as:

   • Real Yield: Borrow fees generated by the lending platform

   • xSCALES incentives

   • Swap fees revenue from the SLIZ/SCALES LP (1% pools)

   • Early exit fees from xSCALES redemptions

3. And more coming!

Unveiling xSCALES

Engage in farming on SL Lending and receive xSCALES, serving as a redeemable receipt token representing your SCALES balances post-vesting period. To redeem SCALES at a 1:1 ratio against xSCALES, a linear vesting period of 60 days is required. This strategic measure mitigates sell pressure from opportunistic liquidity providers seeking rapid profits.

To bolster the protocol's revenue streams while ensuring fairness for all users, an early exit option is available, albeit with a 35% early exit fee payable in WETH. Proceeds from this fee are redistributed to SCALES stakers, further enhancing the ecosystem's resilience and sustainability.