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54 changes: 29 additions & 25 deletions docs/powfi/faq.md
Original file line number Diff line number Diff line change
Expand Up @@ -4,7 +4,27 @@ title: FAQ
sidebar_label: FAQ
---

## **How do staking rewards work?**
## **DEX**

## **ALPH Staking**

### What is xALPH?

xALPH is a liquid representation of staked ALPH.

Mainnet xALPH token ID: [6dc961b59aae53c768fe6f608e6bea30f6747041af3fd800c8c6533766e54f00](https://explorer.alephium.org/tokens/6dc961b59aae53c768fe6f608e6bea30f6747041af3fd800c8c6533766e54f00)

Mainnet xALPH staking contract: [225WevmFp5ZgzPsyVJTvyp2v2uyKrvp329HfrVmzffnWj](https://explorer.alephium.org/addresses/225WevmFp5ZgzPsyVJTvyp2v2uyKrvp329HfrVmzffnWj)

When you stake ALPH:

**ALPH → locked ALPH → xALPH**

Each xALPH is backed by locked ALPH and represents your staked position.

xALPH does not replace ALPH. It lets you use your staked position in supported pools and applications while the underlying ALPH stays locked.

### How do staking rewards work?

Rewards deposited into the xALPH contract increase the ALPH backing each xALPH.

Expand All @@ -20,7 +40,7 @@ Rewards come from:

The exact APR will change over time depending on network activity, protocol fees and on-going campaigns.

## **Why does xALPH increase in value?**
### Why does xALPH increase in value?

As staking rewards accumulate, the amount of ALPH backing xALPH increases.

Expand All @@ -32,27 +52,27 @@ In simple terms:

The conversion rate changes whenever ALPH rewards are deposited into the xALPH contract. No separate ALPH payment is sent to holders; each xALPH becomes backed by more ALPH.

## **How can I use xALPH?**
### How can I use xALPH?

xALPH keeps your staked position liquid where xALPH is explicitly supported.

You can use xALPH for activities such as:

- Swapping xALPH and ALPH on Powfi.

- Providing liquidity in Powfi's ALPH/xALPH pool.
- Providing liquidity in Powfi’s ALPH/xALPH pool.

- Using xALPH in another application only when that application explicitly supports it.

- Confirming token support before depositing xALPH into any application.

xALPH does not automatically work in every DeFi application.

## **Can I convert xALPH back to ALPH?**
### Can I convert xALPH back to ALPH?

Yes. There are two ways to convert xALPH back to ALPH.

### **Official unstaking**
#### **Official unstaking**

You can use the official **Unstaking** process.

Expand All @@ -62,7 +82,7 @@ You can use the official **Unstaking** process.

- Your ALPH becomes claimable linearly during the unlock period.

### **DEX**
#### **DEX**

You can also swap xALPH for ALPH through a DEX such as Powfi.

Expand All @@ -72,34 +92,18 @@ You can also swap xALPH for ALPH through a DEX such as Powfi.

- The amount you receive depends on available liquidity and slippage.

## **xALPH and ALPH conversion rate**
### xALPH and ALPH conversion rate

At launch, the conversion rate starts at:

**1 xALPH = 1 ALPH**

The conversion rate changes whenever ALPH rewards are deposited into the xALPH contract. xALPH holders do not receive a separate ALPH payment; each xALPH becomes backed by more ALPH.

## **What happens to my ALPH when I stake?**
### What happens to my ALPH when I stake?

Your ALPH is locked in the Powfi staking system.

You receive xALPH in return, which represents your staked position.

The underlying ALPH remains locked while xALPH gives you a liquid representation that can be used in supported pools and applications.

## **Important things to remember**

- Staking locks your underlying ALPH.

- xALPH represents your staked ALPH.

- The Staking APR is an estimate and can change over time.

- The value represented by each xALPH can increase as rewards accumulate.

- Official unstaking has a 30-day unlock period.

- Swapping xALPH for ALPH on a DEX such as Powfi is subject to market price, liquidity, and slippage.

- Keep some ALPH available in your wallet for transaction fees.
18 changes: 9 additions & 9 deletions docs/powfi/stake.md
Original file line number Diff line number Diff line change
Expand Up @@ -14,7 +14,7 @@ Stake ALPH and receive xALPH.

When you stake ALPH, it becomes locked in the Powfi staking system and xALPH is minted to represent your staked position.

**What you'll have after staking:**
**What you’ll have after staking:**

- Your ALPH is locked in the staking system.

Expand Down Expand Up @@ -80,18 +80,18 @@ At mainnet launch:

Over time, staking rewards accumulate to the underlying staked ALPH, increasing the amount of ALPH represented by each xALPH.

## **What is xALPH?**
## **Important things to remember**

xALPH is a liquid representation of staked ALPH.
- Staking locks your underlying ALPH.

Mainnet xALPH token ID: [6dc961b59aae53c768fe6f608e6bea30f6747041af3fd800c8c6533766e54f00](https://explorer.alephium.org/tokens/6dc961b59aae53c768fe6f608e6bea30f6747041af3fd800c8c6533766e54f00)
- xALPH represents your staked ALPH.

Mainnet xALPH staking contract: [225WevmFp5ZgzPsyVJTvyp2v2uyKrvp329HfrVmzffnWj](https://explorer.alephium.org/addresses/225WevmFp5ZgzPsyVJTvyp2v2uyKrvp329HfrVmzffnWj)
- The Staking APR is an estimate and can change over time.

When you stake ALPH:
- The value represented by each xALPH can increase as rewards accumulate.

**ALPH → locked ALPH → xALPH**
- Official unstaking has a 30-day unlock period.

Each xALPH is backed by locked ALPH and represents your staked position.
- Swapping xALPH for ALPH on a DEX such as Powfi is subject to market price, liquidity, and slippage.

xALPH does not replace ALPH. It lets you use your staked position in supported pools and applications while the underlying ALPH stays locked.
- Keep some ALPH available in your wallet for transaction fees.
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