stXPGN (PID-0) — Governance Vault

TL;DR

  • Stake XPGN → mint stXPGN shares.

  • Auto-compounding: the vault periodically pulls protocol flows (buybacks, surplus, incentives) into underlying XPGN, so the exchange rate (XPGN per stXPGN) only goes up.

  • Non-rebasing, share-based: your stXPGN balance stays the same; the value per share increases.

  • Governance/boosts: lock stXPGN → veFlow to vote on gauges & earn surplus shares.

  • PID-0 in Farms UI is a dedicated, single-asset “vault card.”

What is stXPGN?

stXPGN is the governance wrapper of XPGN. When you deposit XPGN you receive stXPGN (shares). Those shares represent a pro-rata claim on the vault’s underlying XPGN, which grows over time from:

  • Protocol buybacks / POL accruals routed to the vault,

  • PoBE (Proof-of-Best-Execution) surplus share,

  • Directed incentives (when governance configures them).

stXPGN is a non-rebasing token (like xSUSHI/stETH-shares/EIP-4626 shares). Your balance doesn’t change; the exchange rate increases as yield is compounded.

How it works (mechanics)

  • The vault follows EIP-4626 semantics where available:

    • deposit(assets) → shares, redeem(shares) → assets, plus previews (convertToShares, convertToAssets).

  • Some deployments may expose equivalent legacy names (stake/unstake, enter/leave). The app detects and uses whichever is present.

  • Exchange rate:

    rate=TotalUnderlyingXPGNTotalShares(stXPGN)\text{rate} = \frac{\text{TotalUnderlyingXPGN}}{\text{TotalShares(stXPGN)}}rate=TotalShares(stXPGN)TotalUnderlyingXPGN​

    Deposits mint shares = assets / rate; redemptions return assets = shares × rate.

Why use stXPGN?

  • Auto-compound without claiming/harvesting.

  • Governance power: lock stXPGN → veFlow to direct emissions & surplus.

  • Composability: stXPGN is an ERC-20 share token—can be held, transferred, integrated.

Using it on Paragon (PID-0)

  1. Approve XPGN → stXPGN (first time only).

  2. Stake: enter amount of XPGN; UI shows stXPGN you’ll receive.

  3. Unstake:

    • Testnet now: Unstake All (burns 100% of your stXPGN and returns XPGN at current rate).

    • Mainnet/upgrade: partial redemptions via withdraw/redeem (or unstake/leave) will be enabled.

  4. The card shows:

    • Staked (XPGN eq.) – your underlying claim,

    • stXPGN shares – your share balance,

    • Current Rate – 1 stXPGN ≈ X.X XPGN.

Note: There’s no separate “Earned” counter—growth appears as an increasing rate.

Math (example)

  • At time T0: vault has 1,000,000 XPGN backing 1,000,000 stXPGN → rate = 1.0.

  • You deposit 10,000 XPGN → receive 10,000 stXPGN (minus 0 fees by default).

  • Later, protocol adds 50,000 XPGN (buybacks/surplus). Supply still 1,010,000 stXPGN → new rate ≈ 1,050,000 / 1,010,000 ≈ 1.0396.

  • If you redeem all 10,000 stXPGN, you receive ~10,396 XPGN.

Fees & Limits (defaults)

  • Deposit fee: 0%

  • Withdraw fee: 0%

  • Performance fee: 0% (growth is from external inflows; any fee changes require governance)

  • Min deposit / Pausing: contract may expose minDeposit() and pause flags. The UI will show messages if deposits are paused.

Risks

  • Smart-contract risk (vault/controller).

  • Governance risk (parameter changes, pausing).

  • XPGN price risk: your claim is in XPGN; USD value varies with market.

Integrations (builders)

  • Prefer EIP-4626 calls: deposit, withdraw, redeem, convertToShares/Assets, totalAssets/totalSupply.

  • Legacy shims (some deployments): stake/unstake, enter/leave.

  • Events: standard ERC-20 Transfer plus any 4626-style Deposit/Withdraw if implemented.

FAQ

Is stXPGN rebasing? No. It’s share-based. Your stXPGN amount stays fixed; the XPGN-per-share grows.

Where does the yield come from? From protocol flows (Treasury buybacks/POL), PoBE surplus share, and governance-directed incentives.

Can I use stXPGN for voting? Yes—lock stXPGN into veFlow to direct emissions & surplus and to receive locker distributions.

Can I redeem partially? Testnet: “Unstake All” only (simplified). Mainnet: Yes, partial redemptions supported (4626/legacy).

Testnet notes (next 3–4 weeks)

  • UI: PID-0 card with Approve / Stake / Unstake All and live rate.

  • Accounting: preview math via convertToShares/Assets if available, else conservative estimation.

  • Parameters: deposits may be gated by minDeposit and paused if necessary during audits.

Addresses

  • stXPGN: see Contracts & Addresses page (Testnet/Mainnet).

  • XPGN (underlying): see Contracts & Addresses.

  • Farm Controller (PID-0 binding): see Contracts & Addresses.

Roadmap

  • Enable partial redemptions in UI (already supported in contracts where available).

  • Add auto-stake of rebates (PoBE) into stXPGN directly from the trade flow.

  • Expose historical rate chart and APY estimator on the vault page.

  • Permissionless strategist hooks (future) to automate buyback cadence.

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