# Constant Product rex33 ratio floor Methodology

## 1. Overview

The rex33 ratio floor represents the minimum amount of REX that can be redeemed per xREX token within the Constant Product product. This metric establishes a baseline conversion value, ensuring that xREX holders can always redeem at least this minimum amount of REX per token. It is calculated by applying a 50% multiplier to the ratio between the total supply of staked xREX tokens and the circulating supply of rex33 tokens.

## 2. Data sources

- **Blockchain events**: `Deposit` and `Withdraw` events from `rex33` and `VoteModule` contracts, covering Linea

## 3. Step-by-step calculation

### Component A: rex33 outstanding supply tracking

- **Purpose**: Calculate the total circulating supply of rex33 tokens as the denominator for the ratio
- **Logic**: `Deposit` and `Withdraw` events are parsed from `rex33` contracts to track the minting and burning of rex33 tokens. Minted amounts are treated as positive values and burned amounts are treated as negative values. These daily changes are aggregated and a cumulative sum is calculated to determine the total outstanding supply for each day.
- **Key fields**: `amount` (quantity of tokens), `block_timestamp` (timing)

### Component B: Staked xREX balance tracking

- **Purpose**: Determine the total amount of xREX tokens staked in the protocol as the numerator for the ratio
- **Logic**: `Deposit` and `Withdraw` events are parsed from `VoteModule` contracts to identify xREX staking and unstaking activities. Daily net changes in staked amounts are calculated per user address. A cumulative sum is applied to determine running staked balances, and values are filled forward to ensure the most recent balance is represented on days without new event activity.
- **Key fields**: `amount` (staked quantity), `token_address` (xREX identification)

### Component C: Ratio calculation and floor application

- **Purpose**: Derive the final floor redemption value from the relationship between staked assets and circulating supply
- **Logic**: The ratio ceiling is first calculated by dividing the total staked xREX supply by the outstanding rex33 supply. The rex33 ratio floor is then defined as 50% of this calculated ceiling. The resulting values are filled forward to ensure a continuous time series and normalized to a daily granularity using UTC day boundaries.
- **Key fields**: `staked_supply` (total staked xREX), `outstanding_supply` (total rex33 supply)

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

0.5 * (staked_backing_tokens / rex33_circulating_supply)

Minimum redeemable REX per rex33 token based on a discounted backing ratio.

rex33 ratio floor

Constant Product

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rex33 ratio floor

rex33 ratio floor