XRT — Options That Never Expire

XRT tokens are perpetual call options on XCEL. They provide convex upside exposure as the market price of XCEL rises above the floor.

How XRT Works

Exercise by pairing 1 xlUSD + 1 XRT to mint 1 XCEL at floor price. The XRT is burned on use, creating natural deflationary pressure as XCEL supply grows.

Key properties: burned on use, no expiry, freely transferable.

XRT Value

The value of XRT is the difference between the floor price of XCEL and its market price. If XCEL trades 10 cents above floor, XRT is intrinsically worth up to 10 cents.

This creates a natural arbitrage mechanism — when XCEL's premium grows, minters buy XRT, pair with xlUSD, mint XCEL at floor, and capture the spread. New supply compresses the premium back down. Price stability emerges from self-interested behavior.

Controlled Inflation

XRT emissions are the sole mechanism for new XCEL supply. XCEL targets a 5% yearly inflation ceiling, but actual realized inflation will always be lower — minting requires real USDC, so in bear markets when people are capital-constrained, minting slows organically. Inflation is naturally counter-cyclical.

New XCEL can only enter circulation when someone commits real dollars. The floor price backing grows in lockstep with supply, so inflation never dilutes per-token backing.

80% of all XRT emissions are distributed to XCEL+ stakers every week on Thursdays. For exact emission rates, splits, and distribution strategy, see Launch & Token Distribution.