Exit

The protocol is programmed to shutdown when ETH reaches 10,000 USD and the Uniswap position goes out of range leaving only USDC in it.
During the shutdown process the Uniswap position is closed and the contract enters the Exit phase, where all protocol acquired assets and fees can start to be claimed.

Bootstrap Deposits

The liquidity deposits from the bootstrap phase can now be claimed back in full. Because the position is out of range the deposits are returned as USDC.

EXIT: The Token To Wrap It All Up

EXIT tokens do not give its holders governance rights of any kind. They are simply an IOU of a share of the Protocol Acquired Liquidity (underlying assets in the Exit Bucket once/if ETH reaches 10K USD) and of the Accumulated Transaction Fees that were generated until then.
Once the immutable Smart Contracts are deployed the team will have as much control over EXIT10 as any participant—zero.

Protocol Acquired Liquidity and Accumulated Transaction Fees

Protocol Acquired Liquidity (the underlying USDC left in the Uniswap position) and the remaining Accumulated Transaction Fees (in staked ETH) become claimable.

Protocol Acquired Liquidity:

  1. 1.
    30% is shared equally between Bootstrap Depositors, Early Backers and the Team (i.e. each group 10%)
  2. 2.
    70% is available to be claimed by EXIT token holders

Accumulated Transaction Fees:

  1. 1.
    20% was available to be claimed by Bootstrappers (10%), Early Backers (5%) and the Team (5%) throughout the lifetime of the protocol.
  2. 2.
    The remaining 80% can be claimed by EXIT token holders in the form of ETH and/or staked ETH depending on availability.

EXIT Token Distribution

The only way to obtain EXIT tokens is through farming.
EXIT tokens are only distributed to protocol participants. Insiders or Team members did not get any EXIT prior to protocol launch or after.
Every time the protocol converts earned transaction fees into ETH it will mint EXIT tokens on a 1000:1 ratio to the acquired ETH.
The EXIT is then distributed equally for 2 weeks until more fees are acquired and more EXIT is minted.
If more fees were collected before the first batch was fully distributed, any remaining fees are added to the next distribution batch and evenly spread for another 2 weeks.

USDC/EXIT Liquidity Providers - 20%

These are allocated to liquidity providers of the EXIT/USDC Uniswap V2 pool. This is the only way EXIT token holders can be diluted. In order to minimize dilution they can provide liquidity to this pool.

BLP Stakers - 80%

The majority of EXIT will be distributed to BLP stakers relative to the size of their liquidity position.

Minimum viable supply

EXIT tokens have a max supply cap. This means that there will be no more than 100,000,000 tokens in circulation. This means that the maximum EXIT supply is 100M tokens but it is possible that the final supply will be much lower.

EXIT backing vs market price

EXIT tokens are exchanged to USD and staked ETH at the exit phase, the final value per EXIT depends on the following:
  1. 1.
    the amount of liquidity contributed during the bootstrap phase
  2. 2.
    the amount of acquired liquidity through bond conversion
  3. 3.
    the total amount of liquidity in the protocol
  4. 4.
    the average APR in the Uniswap V3 position
  5. 5.
    the price in which fees were converted to ETH
  6. 6.
    the average APR of staked ETH
  7. 7.
    the final supply of EXIT
EXIT tokens are only minted when transaction fees are converted to ETH on a 1000:1 ratio. This means that protocol acquired liquidity and staked ETH yield only add value to the underlying EXIT without adding it to the overall supply. This makes EXIT more attractive than simply holding the same equivalent value in ETH.
The incentivized USDC/EXIT liquidity pool enables market participants to speculate on the future possible value acquired by the protocol while also giving stakers the ability to get instant liquidity on their future fees.