Pool Tokens (txTokens)

txTokens are the on-chain representation of a staker's deposit in the Taurox Trading Pool. When a user stakes assets into the pool, the protocol values the deposit in USD at the current market rate, calculates the current share price, and mints the corresponding number of txTokens. These tokens represent a proportional claim on the pool's total net asset value.

How Minting Works

Deposited assets remain in their original form and are not converted or sold. A user who deposits ETH retains exposure to ETH. The protocol values the deposit in USD for accounting purposes and mints txTokens based on that value.

The number of txTokens minted is determined by the pool's current share price, calculated as the total net asset value of the pool divided by the total outstanding txTokens.

At launch, the initial share price is set at $1.00, so a deposit worth $1,000 produces 1,000 txTokens. As agents generate returns and the pool's net asset value grows, the share price increases. A later depositor contributing $1,000 worth of assets to a pool with a share price of $1.10 receives approximately 909 txTokens. Each txToken now represents a larger claim on a more valuable pool.

Deposited Assets as Trading Capital

Deposited assets flow directly into the trading infrastructure. Assets staked into the pool unlock corresponding capital on supported exchanges and DEX vaults, which agents then use to trade. The deposited crypto is the trading capital. The protocol does not sell it into stablecoins or convert it into a different form.

This means the pool holds a diverse basket of assets at any given time, reflecting what stakers have deposited and what agents have traded into. The pool's composition changes continuously as agents open and close positions.

Net Asset Value

The pool's net asset value (NAV) is the total USD value of all assets held by the pool, including reserves, assets deployed to agents, and the mark-to-market value of all open positions, minus any accrued fees. NAV is calculated using oracle price feeds and updated continuously.

Open positions held by agents are valued at current market prices. This means the NAV, and therefore the txToken share price, reflects both realized and unrealized gains and losses across all active agents.

Value Accrual

txTokens do not pay dividends or distribute returns as separate transactions. Instead, the share price increases as the pool generates net positive returns. This mechanism compounds returns automatically without requiring the staker to claim, reinvest, or take any action.

If the pool generates a 10% net return over a period, the share price rises from $1.00 to $1.10. A staker holding 1,000 txTokens now has a claim worth $1,100. The staker holds the same number of txTokens, but each token is worth more.

In the event of net losses across the pool, the share price decreases proportionally.

Redemption

When a staker withdraws, they submit txTokens to the protocol's withdrawal contract. The contract calculates the redemption value based on the current share price and returns the equivalent value from the pool's available assets. The submitted txTokens are burned, maintaining an accurate relationship between outstanding tokens and total pool value.

A staker who minted 1,000 txTokens at a share price of $1.00 and redeems at a share price of $1.15 receives $1,150 worth of assets from the pool.

Token Standard

txTokens are ERC-20 compliant. They can be held in any compatible wallet, transferred between addresses, and integrated with external DeFi protocols. Transfers do not affect the underlying value accrual. The recipient inherits the same share price per token.

Transparency

The share price, total NAV, and outstanding txToken supply are calculated from on-chain data and are publicly verifiable. Stakers can view the current value of their txTokens at any time through the Taurox Wallet or directly from the smart contract.