# Constant Product rex33 ratio ceiling Methodology

## 1. Overview

The rex33 ratio ceiling represents the maximum quantity of REX that is redeemable per xREX token within the Constant Product protocol. This metric establishes a maximum conversion value by calculating the ratio between the total staked supply of underlying assets and the circulating supply of rex33 tokens. The ceiling ensures that xSHADOW holders are guaranteed a specific maximum amount of SHADOW per token upon the expiration of the lockup period.

## 2. Data sources

- **Blockchain events**: `Deposit` and `Withdraw` events from `rex33` contracts, and `Deposit` and `Withdraw` events from `VoteModule` contracts, covering Linea
- **External data**: Asset metadata for normalization

## 3. Step-by-step calculation

### Component A: rex33 circulating supply tracking

- **Purpose**: Calculate the total outstanding supply of rex33 tokens.
- **Logic**: Circulating supply is determined by aggregating `Deposit` (mints) and `Withdraw` (burns) events from `rex33` contracts. Minted amounts are treated as positive values and burned amounts as negative values. A cumulative sum of these net changes is calculated across the time series to determine the total outstanding supply for each day.
- **Key fields**: `amount` (token quantities), `block_timestamp` (event timing)

### Component B: Staked asset tracking

- **Purpose**: Track the total volume of staked assets used as the backing for the ratio.
- **Logic**: Staked balances are captured from `Deposit` and `Withdraw` events from `VoteModule` contracts. These events are aggregated by account and token address to reflect net changes in the staked supply. A running total is calculated to maintain the current staked balance, and values are forward-filled for days without activity to ensure a continuous data series.
- **Key fields**: `amount` (staked quantities), `token_address` (asset identification)

### Component C: Ratio ceiling calculation and aggregation

- **Purpose**: Compute the final ratio between staked assets and circulating supply.
- **Logic**: The rex33 ratio ceiling is calculated by dividing the total staked supply by the outstanding circulating supply of rex33 tokens. This calculation is performed at a daily granularity with UTC day boundaries. The resulting values are normalized by decimal precision and a forward-fill strategy is applied to provide a consistent daily metric.
- **Key fields**: `staked_supply` (numerator), `outstanding_supply` (denominator)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

staked_backing_tokens / rex33_circulating_supply

Maximum redeemable REX per rex33 token based on staked-token backing.

rex33 ratio ceiling

Constant Product

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rex33 ratio ceiling

rex33 ratio ceiling