Conversion & Redemption
Converting between TORCH and xTORCH
Last updated
Converting between TORCH and xTORCH
Last updated
TORCH and xTORCH are mutually convertible into each other, but the process is different depending on the direction.
TORCH can be freely converted into xTORCH at any time. The process is instantaneous, and the ratio is 1:1.
Converting xTORCH into TORCH implies vesting, the duration of which is selected by the user. 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 will provide a 1:1 ratio
If the selected vesting duration is lower than the maximum (ratio < 1:1), the unclaimed excess TORCH is burned.
While being redeemed, the xTORCH is automatically allocated to the plugin for the user, but only grants 50% of the typical rewards. This allocation is automatically canceled once the vesting duration has ended.
The xTORCH redeeming process can be interrupted at any time by the user.
Any canceled redemption before its end will void the whole process. The user will retrieve their entire amount of xTORCH and no TORCH.