I've been thinking about the role of FT and XT together in @TermMax
The easiest mistake is to treat them as two versions of the same token.
They aren't.$PEOPLE
FT represents the fixed-income side of the position, while XT represents the complementary component. In Alpha markets, XT also has an options-premium-like role.$ONG
That separation is what allows the protocol to build different financial structures from the same underlying pieces.
It reminds me of how traditional financial instruments can be separated into different cash-flow components.$ENA
The difference here is that those components are represented on-chain and can interact with smart contracts.
That opens interesting possibilities, but it also makes the accounting more important.
If you don't understand exactly what FT and XT represent at a given stage, the whole system can look far more complicated than it actually is.
For me, the useful question is always:
WHAT claim does this token give me?
Once that is clear, the rest becomes easier to follow.
#TermMax
The easiest mistake is to treat them as two versions of the same token.
They aren't.$PEOPLE
FT represents the fixed-income side of the position, while XT represents the complementary component. In Alpha markets, XT also has an options-premium-like role.$ONG
That separation is what allows the protocol to build different financial structures from the same underlying pieces.
It reminds me of how traditional financial instruments can be separated into different cash-flow components.$ENA
The difference here is that those components are represented on-chain and can interact with smart contracts.
That opens interesting possibilities, but it also makes the accounting more important.
If you don't understand exactly what FT and XT represent at a given stage, the whole system can look far more complicated than it actually is.
For me, the useful question is always:
WHAT claim does this token give me?
Once that is clear, the rest becomes easier to follow.
#TermMax
