# Constant Product x33 ratio ceiling Methodology

## 1. Overview

The x33 ratio ceiling measures the maximum amount of SHADOW that is redeemable per xSHADOW token within Constant Product. This ceiling is calculated as 100% of the ratio between total staked xSHADOW tokens and the circulating supply of X33 assets. The metric is used to establish a maximum conversion value, ensuring that xSHADOW holders can redeem this specific amount of SHADOW after the applicable lockup period has concluded.

## 2. Data sources

- **Blockchain events**: `Deposit` and `Withdraw` events from `x33` and `VoteModule` contracts, covering Sonic

## 3. Step-by-step calculation

### Component A: X33 circulating supply tracking

- **Purpose**: Determine the total outstanding supply of X33 assets.
- **Logic**: `Deposit` and `Withdraw` events from `x33` contracts are parsed to identify the minting and burning of assets. Daily net changes are calculated by summing the amounts from deposit events and subtracting the amounts from withdrawal events. These daily deltas are aggregated into a cumulative sum to track the total outstanding supply of X33 tokens over time.

### Component B: Staked xSHADOW balance tracking

- **Purpose**: Calculate the cumulative balance of xSHADOW tokens held within the staking module.
- **Logic**: `Deposit` and `Withdraw` events from `VoteModule` contracts are parsed. The amounts are treated as positive for deposits and negative for withdrawals to determine the net change in staked supply. A cumulative sum is applied to these daily changes to derive the total staked balance of xSHADOW tokens.

### Component C: Ratio ceiling calculation and normalization

- **Purpose**: Calculate the final conversion ratio and ensure data continuity.
- **Logic**: The x33 ratio ceiling is calculated by dividing the cumulative staked xSHADOW supply by the cumulative outstanding X33 supply. The calculation is performed for each day at a daily granularity. A fill-forward mechanism is applied to the resulting values to ensure data remains available for days without new event activity. All amounts are normalized by decimal precision to ensure accurate ratio reporting.

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

Maximum redeemable SHADOW per X33 token based on current backing.

x33 ratio ceiling