Xai on Yield Pass

Tiny Key Node Owners have two options to use Yield Pass. Below is how they work, the benefits, and the potential risks of each:

1. DEPOSIT & EARN: Earn swap fees and MetaStreet Node Crystals when you deposit and become a Liquidity Provider for $XAI and Yield Pass ($YP) Tokens

2. DEPOSIT & SELL: Instantly unlock liquidity when you deposit and sell your $YP for $XAI, however, you will NOT be eligible for MetaStreet Node Crystals

IMPORTANT NOTES:

• Tiny Keys must be staked in a Diamond or Platinum pool in order to be eligible for deposit to ensure consistent yield disbursement for participants. Inconsistent or lower emissions would impact the overall yield quality for all depositors.

• To earn Node Crystals, you must (1) create an Ascend account and (2) not sell your LP tokens. Any Crystals earned prior to selling your LP will remain

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1. Deposit & Earn

This option allows you to earn swap fees and MetaStreet Node Crystals (our native rewards) by becoming a Liquidity Provider (LP).

How it Works:

Reminder: These three steps occur in one single, bundled transaction

1. Deposit & Mint: Deposit your node to mint two tokens:

   1. Yield Pass ($YP): represents future $esXAI emissions/airdrops, claimable when the pool expires

   2. Node Pass (NP): represents node ownership, claimable when the pool expires

2. Borrow: Use your NP as collateral to borrow $XAI with the following terms:

   1. Amount and Rate: 10 $XAI at 0% APR (introductory rate)

   2. Term: 140 days from when you deposited (50d buffer after pool expiry)

3. Provide Liquidity: Supply $YP and $XAI to the Liquidity Pool to:

   1. Earn swap fees by creating a new liquid swap market for $XAI

Benefits:

• Access $XAI liquidity without selling your node, waiting for emissions or vesting

• Earn yield through swap fees and earn MetaStreet's Node Crystals

• Borrow at 0% APR for a limited time

Risks:

• Impermanent Loss: Market fluctuations in price between the time of deposit and withdrawal may change the value of your underlying LP position, specifically the quantity of each token

• Loan Default: Failing to repay your loan before maturity date will result in the loss of your node. Set calendar reminders to avoid default. Read about Withdrawals below

2. Deposit & Sell

Instantly unlock liquidity when you deposit and sell your $YP for $XAI, however, you will NOT be eligible for MetaStreet Node Crystals.

How it Works:

1. Deposit & Mint: Deposit your node to mint two tokens:

   1. Yield Pass ($YP): represents future $esXAI emissions/airdrops, claimable when the pool expires

   2. Node Pass (NP): represents node ownership, claimable when the pool expires

2. Sell: Swap $YP for $XAI instantly from the Liquidity Pool (Uniswap)

Benefits:

• Immediate liquidity without waiting for pool expiration or the 180 day vesting period

Risks:

• You are accepting the current swap rate for $XAI, which is market dependent

• You forfeit the ability to earn swap fees and MetaStreet Node Crystals

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Final Steps: Withdraw, Rollover, Claim

Depositors have two options at the pool expiration:

1. ROLLOVER: Roll your node over into the next Yield pass pool

2. WITHDRAW: Exit the pool by removing your node from Yield Pass

IMPORTANT NOTES:

• You can begin the NP withdrawal or rollover process at pool expiration

• You MUST complete either option prior to loan maturity to avoid default

• Rollovers do not impact the claims process since each new pool will have a new Yield Pass pool

1. ROLLOVER

This option allows a depositor to fully exit their position from Yield Pass. Here are the steps:

Unlike for Deposit, these transactions will require individual steps

1. Remove LP Tokens: Remove liquidity to receive $YP and $XAI

2. Refinance Node: Refinance your NP loan

3. Rollover Node: Rollover your node into the new pool

4. Claim $esXAI Emissions: Burn your $YP to receive $esXAI

Node will not have idle time where it isn't earning emissions as it will remain staked

2. WITHDRAW

This option allows a depositor to fully exit their position from Yield Pass. Here are the steps:

Unlike for Deposit, these transactions will require individual steps

1. Remove LP Tokens: Remove liquidity to receive $YP and $XAI

2. Repay Borrowed $XAI: Repay your loan to reclaim your NP Token

3. Redeem Node: Use your NP to reclaim your node

4. Claim $esXAI Emissions: Burn your $YP to receive $esXAI

The user does not have to restake their node after they exit, as it will remain staked in the same pool as prior to and during NodeFi

CLAIM

If you minted $YP or purchased $YP via swaps, you are not affected by either Withdraw or Rollover options. Here are the steps:

1. Claim: Claim your $esXAI emissions and receive $esXAI immediately

2. Manage: Redeem for $XAI or Stake $esXAI in a staking pool

IMPORTANT NOTES:

1. Claims for $esXAI emissions will open immediately after pool's expiration

2. User is then responsible for redeeming for $XAI or staking on Xai's app

3. Claims are a one-time process to avoid confusion and errors (you will not be able to redeem for less than the full amount of $YP you own)