FAQs

General Questions

  1. What are Liquidity Pools, and how do they work?

    1. Liquidity pools aggregate assets to provide instant liquidity, enabling fast transactions without the need for direct buyer and seller matching. They support a fluid market and promote fair trading through dynamic pricing adjustments.

  2. What is the L1X Multichain Balancer Pool?

    1. The L1X Multichain Balancer Pool is an innovative platform within decentralized finance (DeFi) that breaks traditional barriers by integrating tokens from various blockchain networks into one seamless ecosystem. It offers limitless liquidity, ultra-fast cross-chain swaps, and sophisticated investment strategies.

  3. How can I benefit from the L1X Multichain Balancer Pool?

    1. As a liquidity provider, you can earn from trade fees and swap tokens within an ecosystem designed for modern traders. The platform offers a diverse range of opportunities for both traders and liquidity providers.

  4. When will the Bitcoin Network be integrated into the L1X Multichain Balancer Pool?

    1. The integration of the Bitcoin Network is anticipated in Q2 of 2024, enhancing the platform's capabilities and further redefining the landscape of DeFi trading.

  5. What makes the L1X Balancer Pool unique?

    1. The L1X Balancer Pool pioneers the concept of multi-token pools, offering versatility and enhanced yield-earning opportunities for liquidity providers. It utilizes smart algorithms for optimal trading conditions and minimal fees.

L1X Multichain Balancer Pools vs. Single Chain Balancer:

  1. What are the advantages of the L1X Multichain Balancer Pool over single-chain balancers?

    1. For users, the L1X Multichain Balancer Pool offers access to tokens from various chains, deeper liquidity, seamless token swaps between chains, and exposure to new ecosystems. For projects, it provides a wider reach, increased token utility, risk diversification, and opportunities for cross-chain collaboration.

  2. What services does the L1X Balancer offer?

    1. The L1X Balancer provides efficient coin and token swaps, unmatched liquidity mining opportunities, and empowerment for DeFi developers through bridgeless interoperability and seamless integration.

Understanding Slippage on the Balancer Pool:

  1. What is price impact, and why is it important to consider when joining a Balancer Pool?

    1. Price impact refers to the change in the price of assets in the pool due to a transaction. It's crucial to consider because large transactions can cause slippage, impacting the transaction's efficiency and the pool's price dynamics.

  2. What is slippage, and how does it affect transactions on the Balancer Pool?

    1. Slippage refers to the variation in price from the initiation to the confirmation of a transaction. It's crucial for traders to manage expectations and strategize effectively, especially in dynamic environments like the Balancer Pool.

  3. How does Impermanent Loss affect these LP Pools?

    1. The value of XBPT tokens will fluctuate with the L1X coin's market value. We advise conducting thorough due diligence, considering factors like Impermanent Loss versus LP value gain, alongside additional rewards.

Others

  1. How does L1Dex work into the Liquidity Bootstrap and the Multichain balancer pool?

    1. The balancer pool is an example of the capabilities the L1Dex will have. We aim to handover the single staking and balancer pools to L1DEX once they have completed their testing.

  2. Will there be bootstrapping for multi-chain gas token pools during the PoX phase, or is it limited to stablecoins?

    1. Initially, we're focusing on stablecoins due to their frequent use and significance in bridging across blockchain ecosystems. Over time, the balancer pool will accept any token from connected chains, provided there's an existing liquidity pool on the native chain. The first step is showcasing this through a liquidity bootstrap.

Joining the Balancer Pool

  1. What is the purpose of joining a Balancer Pool?

    1. Joining a Balancer Pool allows users to provide liquidity to the pool, which enhances its trading efficiency and enables them to earn trading fees and receive rewards.

  2. Can I review transaction details before confirming my participation in the Balancer Pool?

    1. Yes, users can review transaction details, including the estimated XBPT amount they'll receive and the potential price impact, before confirming their participation. This ensures transparency and allows users to make informed decisions.

  3. How does the Layer 1 Cross-chain Virtual Machine (L1X VM) architecture enhance the Balancer Pool joining process?

    1. The L1X VM architecture facilitates seamless cross-chain interactions, allowing users to join Balancer Pools across different blockchains while maintaining interoperability and security. This enables greater liquidity aggregation and access to diverse asset markets.

Set Up

  1. How do I connect my Wallet to L1X App?

    1. Visit https://l1xapp.com/ and connect your MetaMask wallet following the on-screen instructions.

  2. How do I configure my MetaMask with L1X EVM?

    1. Please check this blog here to configure your MetaMask with L1XEVM.

  3. What is the difference between MetaMask and XWallet while I check my XBPT Tokens?

    1. When you use MetaMask to check and send the XBPT Tokens; you will only be able to interact with any contract that has been deployed on L1X EVM. You will not be able to use MetaMask to send Native L1X Coins on TGE. XWallet has complete integration with L1X Core and you will be able to transfer tokens for contracts that are not available on L1X EVM.

Deposits

  1. What chains does the L1X Multichain Balancer Pool support?

    1. Currently, L1X supports tokens from Ethereum, Binance Smart Chain, Solana, and more. With the upcoming integration of the Bitcoin Network, L1X is set to further expand its capabilities.

  2. What are the different pool options?

    1. There are 4 pools

      1. L1X/USDT (BSC Chain)

      2. L1X/USDT (ETH Chain)

      3. L1X/USDC (BSC Chain)

      4. L1X/USDC (ETH Chain)

  3. What is the minimum and maximum deposit amount?

    1. The minimum deposit is $50 and the maximum deposit is $500K.

  4. What happens to my deposited funds?

    1. 50% of your deposit is converted to L1X coins and paired with the remaining 50% to create XBPT tokens. These XBPT tokens represent your share of the liquidity pool and entitle you to rewards.

  5. Can I withdraw my funds early?

    1. No, you cannot withdraw your funds early. Your deposit is locked until TGE and then distributed over 120 days.

  6. What are the fees associated with depositing?

    1. There are gas (transaction) fees associated with the transaction of depositing to the L1X Liquidity Bootstrap Program.

L1 Coins and XBPT Tokens

  1. What is the X Balancer Pool Token (XBPT), and how does it work?

    1. The XBPT represents ownership in a liquidity pool within the L1X Multichain Balancer.

    2. It can be exchanged for a proportional share of the pool's assets, and holders receive trading fees and governance rights.

    3. XBPTs facilitate asset swaps within the pool and provide information about assets across diverse chains.

    4. Before TGE, it provides an indirect way to trade L1X Coins.

    5. Upon TGE, it will be used for Swaps and Exiting the Pool.

  2. How do I calculate the amount of X Balancer Pool Tokens (XBPT) I'll receive when joining the pool?

    1. The amount of XBPT you receive is determined based on the proportion of liquidity you contribute to the pool and the current pool composition. Balancer's algorithm ensures fair and efficient token distribution.

  3. How do I claim my L1X Coins and XBPT Tokens?

    1. Your L1X/Stablecoin pair tokens and L1X coin rewards become claimable daily over 120 days starting from TGE.

    2. You can claim them through the L1X App using the same wallet used for depositing.

    3. When the BPT tokens are provided in the pool to exit, then it will check the vesting schedule.

  4. What can I do with my L1X Coins and XBPT Tokens after claiming them?

    1. You can trade them, stake them on the Dex liquidity for even more rewards, stake the L1X coins to Nodes for rewards, or use them within the L1X ecosystem.

  5. How do I participate in the Balancer Pool's governance and reward mechanisms after joining?

    1. By holding XBPT tokens, users automatically become participants in the Balancer Pool's governance and reward mechanisms.

    2. They can vote on protocol changes and proposals and may also receive rewards, such as trading fees and bonus distributions, based on their stake in the pool.

  6. Upon claiming XBPT and daily distributions, where are they stored?

    1. L1X coins are claimable exclusively from the L1X Wallet.

    2. XBPT Tokens can be claimed via both Metamask and the X Wallet, though we recommend using the X Wallet for simplicity.

    3. XBPT Tokens are immediately tradeable upon claim.

  7. What does it mean that XBPT tokens are tradeable?

    1. XBPT can be sold because are ERC20 version and has the transfer feature.

  8. Where can I sell my XBPT?

    1. In Swaps.

    2. ExitPool upon TGE.

  9. When the LP tokens are claimed after TGE, will the claim happen in L1X coins only or will you get proportions of L1X coins and USDT/USDC?

    1. ExitPool function of the Balancer so you can withdraw liquidity from the Balancer Pool by providing the BPT Tokens and getting proportional stable/coins provided or L1X Coins only.

Rewards

  1. How do I track my rewards?

    1. You can track your daily L1X coin rewards in your L1X Multichain Balancer Rewards screen.

  2. How are rewards calculated?

    1. Rewards are calculated based on the amount of your deposit and the daily reward rate for your chosen pool over the number of days you are staked.

  3. How are rewards distributed?

    1. Rewards are automatically added to your L1X App Rewards Account daily for you to claim.

    2. L1X Coins are automatically airdropped, so you do not have to Claim them.

  4. Can I claim the vested L1X coins in my Metamask wallet instead of XWallet?

    1. No, this is still in XWallet.

  5. What is the daily reward rate for each pool?

    1. The daily reward rate varies depending on the day of deposit and ranges from 20% to 5% during the deposit window and 1% after the window closes until TGE. See the chart in the program details for a breakdown.

    DaysDaily Reward Rate %

    Pool Deposit Window

    Day 1

    12%

    Day 2

    4%

    Day 3

    2%

    Day 4

    1%

    Day 5

    1%

    Day 6

    1%

    Day 7

    1%

    Day 8

    1%

    Day 9

    1%

    Day 10

    1%

    Day 11

    2%

    Day 12

    3%

    Day 13

    12%

    Day 14

    20%

    Post Pool Deposit Window

    Ongoing daily rate up to TGE

    1%

  6. Do I get rewards after the deposit window closes?

    1. Yes, you will continue to earn 1% daily ROI on your deposit until the TGE.

  7. When can I claim my rewards?

    1. You can claim your L1X coin rewards daily after TGE. Your L1X/Stablecoin XBPT tokens are claimable daily over 120 days starting from TGE.

  8. If I send my XBPT Tokens to someone; will I still receive my L1X Rewards?

    1. Yes. By sending the XBPT Tokens, the initial wallet address used to Join the pool will still receive the L1X Bonus.

    2. The XBPT Tokens will be used to show the ownership of assets in the pool so if you send it to someone else they will be able to exit the pool on your behalf.

  9. Am I going to be rewarded if someone uses my Referral Link to access te LBP?

    1. No. Referral Link does not apply in the LBP.

Liquidity Bootstrap Program

  1. What is the L1X Liquidity Bootstrap Program?

    1. The L1X Liquidity Bootstrap Program is an opportunity to provide liquidity to the L1X Multichain Balancer Pool and earn rewards in L1X coins. This helps bootstrap the liquidity of the pool and supports the cross-chain swaps.

  2. What are the benefits of participating in the program?

    1. Earn up to 62% ROI in L1X coins during the deposit window (Feb 21th - March 5th) and 1% daily ROI until the Token Generation Event (TGE).

    2. Get exposure to the L1X Multichain Balancer Pool, a revolutionary DeFi tool for cross-chain swaps and investment strategies.

    3. Support the growth of the L1X ecosystem.

  3. When does the program start and end?

    1. The program starts on February 21st 2024 and ends on March 5th 2024, or when the pool reaches its target volume of $500K TVL, whichever comes first.

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