xINIT and sxINIT
Before we dive into xINIT, we need to establish INIT: the native token of Initia.
INIT is used for staking, governance, and securing Initia’s network. The token plays a central role in Initia's VIP system, where it can be staked and locked to influence reward distribution across interwoven rollups (appchains).
What is xINIT?
When users deposit INIT into Cabal, they receive xINIT, a liquid staking token that represents staked INIT within Cabal. While xINIT does not generate yield on its own, it can be used across a range of DeFi applications such as lending, borrowing, and trading.
The underlying INIT is max-locked to maximize governance power and VIP emissions. Although the underlying INIT is locked for 2 years within Cabal, users can instantly exit their position at any time using the xINIT-INIT liquidity pool.
xINIT is a bridge asset that is primarily (i) staked in Cabal as sxINIT, (ii) used as support for cabalINIT, or (iii) paired with INIT in the xINIT-INIT liquidity pool.
What is sxINIT?
Staked xINIT (sxINIT) is the yield-bearing version of xINIT. Users can stake xINIT to receive sxINIT, which accrues rewards from:
Staking Yield: Base network staking rewards
Bribe Yield: Governance bribes from VIP voting
Additional Incentives: Airdrops, points programs, or other accrued yield
sxINIT earns the highest yield among Initia LSTs due to its integration with VIP. Cabal is built directly on Initia L1, enabling it to capture governance bribes—a yield source unavailable to other staking solutions. Learn more about bribing.
If unstaked, sxINIT requires a 16-day unbonding period to convert back into xINIT. The unbonding period exists strictly to prevent frontrunning bribe distribution, which occurs every 14 days.
