xSODA
xSODA is the accounting representation of staked SODA. Staking directs 20% of the protocol fee into the staking pool, reflected in the xSODA to SODA exchange rate, and xSODA carries governance weight.
What it is
xSODA is the staking representation of the SODA token.
When a participant locks SODA into the staking contract, they receive xSODA as the accounting unit for that position. It represents committed SODA and determines governance weight and staking pool allocation.
xSODA is not a liquidity asset. It is not used for settlement. It is the alignment layer of the protocol.
What it does inside SODAX
Within SODAX, xSODA serves two primary functions:
- It determines governance influence based on staked SODA and lock duration.
- 20% of the fees the system collects is directed into the staking pool, reflected in the xSODA to SODA exchange rate.
Participants may lock SODA for varying durations. Longer commitments increase both voting weight and staking pool allocation. Early withdrawal triggers a penalty, which is redistributed to remaining stakers.
xSODA does not participate in routing, liquidity provision, or cross-network execution. It exists at the governance and incentive layer.
Why it exists
Cross-network execution systems generate fees. xSODA is the structured mechanism through which staking participates in the fee split: 20% of collected fees is directed into the staking pool, reflected in the xSODA to SODA exchange rate over time.
xSODA exists to:
- Tie governance influence to committed capital.
- Weight participation by commitment duration.
- Direct a defined share of collected fees into the staking pool.
By weighting influence by lock duration, the system favors participants with sustained commitment rather than short-term exposure.
What this means for users and partners
For participants, xSODA provides governance rights and a position in the staking pool in exchange for locking SODA.
For the protocol, it creates an alignment layer separate from execution infrastructure.
Component boundaries remain clear:
- SODA is the base utility asset.
- xSODA represents locked SODA and governance weight.
- Liquidity inventory is used for execution.
- bnUSD is a settlement asset.
- The Solver coordinates execution.
- The Hub records settlement state.
xSODA carries staking accounting and governance alignment. It does not participate in bridge or action flows.