xStrategy
Overview
XOX xStrategy
Liquidity Engine and Strategy Trading Protocol Library in the XOX Ecosystem
As the core liquidity provision and strategy execution framework, xStrategy delivers deep, resilient market depth to the XOX perpetuals trading platform while maximizing capital efficiency and providing sophisticated risk-managed exposure for liquidity providers.
In Phase 1, xStrategy operates a high-performance Automated Market Maker (AMM) strategy. Liquidity providers deposit into the unified xLP vault and automatically take the counterparty side of all trader positions on XOX. When a trader opens a short, xLP holders effectively hold the offsetting long (and vice versa). This design). This creates genuine, dynamic market-making that significantly reduces price impact and slippage for users.
xLP revenue sources (distributed pro-rata to vault participants):
Passive market-making PnL from index price convergence
Liquidation fees from under-margined positions
Protocol trading fees (portion allocated to liquidity providers)
Phase 2 (Q2-Q3 2026 roadmap) will launch customizable strategy vaults managed by proven traders, teams, or institutions. Users will be able to allocate capital to individual vaults based on transparent historical performance, Sharpe ratio, drawdown metrics, and risk parameters — similar to a decentralized hedge fund marketplace, but fully on-chain and non-custodial.
Every strategy carries risk. Users must perform independent due diligence on performance history, leverage usage, asset selection, and maximum drawdown before depositing.
Lock-up Period and Withdrawal Rules
Withdrawals can be requested at any time, subject to a maximum 48-hour redemption window. This cooldown exists to allow orderly closure or hedging of the proportional positions attributable to the withdrawing share.
Example: Deposit executed on December 15, 2025 at 14:00 UTC → funds available for withdrawal no later than December 17, 2025 at 14:00 UTC.
During the redemption period, the withdrawing share accrues no further PnL or rewards.
Position handling on withdrawal
If remaining vault margin remains sufficient after withdrawal, open positions are unaffected.
If margin would fall below required levels, a pro-rata portion of every position is closed to maintain consistent liquidation prices across remaining providers.
Vault managers may optionally enforce “always-proportional” mode so liquidation prices remain virtually unchanged regardless of withdrawal size.
Margin orders using the highest leverage are canceled first if needed.
FAQ
What are the risks of providing liquidity via xStrategy? Despite battle-tested risk engines and real-time risk monitors, participants are exposed to market risk (adverse price moves), volatility spikes, funding rate imbalances, and potential oracle latency issues. Regulatory changes affecting decentralized perpetuals protocols may also impact operations.
Where does xLP APR come from? 100% performance-based: AMM market-making profits + liquidation penalties + allocated protocol trading fees. No inflation, no token emissions subsidy in Phase 1.
How to Participate in xStrategy
Deposit USDC (or supported stablecoin) to your XOX Main Account
Navigate to the xStrategy dashboard
Transfer desired amount into the unified xLP vault (Phase 1) or selected custom vault (Phase 2 onward)
Begin earning real-time yields immediately
Withdrawal process Submit redemption request → share locked for up to 48 hours → positions adjusted if necessary → funds automatically returned to Main Account balance.
xStrategy combines institutional-grade liquidity infrastructure with genuine decentralized ownership of yield — delivering the deepest, most capital-efficient perpetuals markets in DeFi.
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