Conversion - Redeeming
GRAIL and xGRAIL are mutually convertible into each other, but the process is different depending on the direction.
GRAIL can be freely converted into xGRAIL any time. The process is instant, and the ratio is 1:1.
The redeem process to convert xGRAIL to GRAIL implies vesting, the duration of which is selected by the user. The conversion ratio will increase proportionally with the vesting duration:
- The minimum vesting duration of 15 days will provide a 1:0.5 ratio
- The maximum vesting duration of 6 months will provide a 1:1 ratio
If the selected vesting duration is lower than the maximum (ratio < 1:1), the unclaimed excess GRAIL is burned.
While being redeemed, the xGRAIL is automatically allocated to the dividends plugin, but only for 50% of its value.
For instance if a user was to redeem 1000 xGRAIL, he will earn dividends as if he actually allocated 500 of them to the Dividends plugin.
This allocation is automatically canceled once the vesting duration has ended.
Any xGRAIL redeeming process can be freely interrupted at any time by the user.
Any canceled redeem before its end will void the whole process. User will retrieve its entire amount of redeeming xGRAIL, and no GRAIL.