# 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.

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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.&#x20;