xHONO to HONO

xHONO to HONO Conversion

Users can convert xHONO to HONO on a 1:1 basis, depending on availability in the xHONO conversion pool. A 2.5% fee in ETH, calculated based on HONO's backing price, is charged for each conversion.

For example, if a user wants to convert 1 xHONO to HONO and the backing price of HONO is $10, they would need to pay an additional fee of $0.25 (2.5% of $10). This fee is collected by the protocol’s revenue contract.

What is the xHONO Conversion Pool?

A portion of the revenue generated by the protocol is used to mint HONO, which is deposited into the xHONO conversion pool. xHONO holders can convert xHONO to HONO at a 1:1 ratio as long as HONO is available in this pool.

Limits:

• The xHONO conversion pool has a maximum cap of 500,000 HONO.
• Each conversion incurs a 2.5% fee in ETH, based on the backing price at the time of conversion.