ICX Protocol Overview
User Flow
Participants acquire ultraLP tokens during the CLW by depositing ETH.
ultraLP tokens are staked in the ICX Ultra Vault to unlock Base Reflection Power and participate in yield generation.
ICX and DXN multipliers amplify staking and auction yields, rewarding active engagement.
Rewards are distributed through reflection and auction mechanisms, with ETH rewards derived from the DXN Staking Vault.
Deflationary mechanics, including burns and redistribution, continuously reduce the circulating supply of ICX, strengthening token scarcity.
Protocol Overview
Purpose and Logic
The ICX Protocol is built on the principle of aligning incentives for participants through a sustainable and deflationary ecosystem. By integrating liquidity bootstrapping, yield optimization, and scarcity-driven mechanics, it provides a unique opportunity for participants to earn rewards while supporting the long-term growth of the protocol.
At its foundation, the ICX Protocol addresses three critical needs within the DeFi space:
Sustainable Liquidity: The protocol establishes a robust liquidity pool through the CLW, ensuring stability from launch.
Deflationary Incentives: Scarcity is introduced through burns and redistribution mechanisms, rewarding long-term commitment and penalizing premature exits.
Multi-Yield Opportunities: Participants can earn ICX and ETH rewards through a variety of interactions, including staking, auction participation, and multiplier boosts.
Each element of the ICX Protocol is interdependent, creating a system where every action reinforces liquidity growth, token scarcity, and reward optimization.
Key Components
Capped Liquidity Window (CLW): The CLW serves as the protocol’s launch mechanism, allowing participants to deposit ETH in exchange for ultraLP tokens (ICX Miners). These tokens grant access to staking and yield opportunities while ensuring the creation of the ICX/ETH liquidity pool.
ultraLP Tokens (ICX Miners): Represent ownership of liquidity in the protocol. These tokens are staked in the ICX Ultra Vault to unlock Base Reflection Power and participate in ICX auctions.
Deflationary Vesting Schedules: Time-locked mechanics that penalize early exits by burning unvested portions and redistributing rewards to the ecosystem.
ICX & DXN Multipliers: Boost Reflection and Auction Power, enabling participants to earn higher yields by staking additional ICX or locking DXN tokens.
Triple Yield Mechanism:
ICX Reflection Yield: Earned through staking ultraLP tokens in the ICX Ultra Vault.
ICX Auction Yield: Distributed based on participation in ICX Daily Auctions.
ETH Yield: Generated from DXN staking and reinvested into the protocol.
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