# Constant Product x33 ratio floor Methodology

## 1. Overview

The x33 ratio floor represents the minimum amount of SHADOW that can be redeemed per xSHADOW asset within Constant Product. It is calculated as 50% of the ratio between total staked xSHADOW assets and the circulating supply of X33 assets. This floor establishes a baseline conversion value, ensuring that xSHADOW holders can always redeem at least this minimum amount of SHADOW per asset.

## 2. Data sources

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

## 3. Step-by-step calculation

### Component A: Constant Product X33 supply tracking

- **Purpose**: Calculate the total outstanding supply of X33 assets.
- **Logic**: `Deposit` and `Withdraw` events are parsed from `x33` contracts. These events represent the minting and burning of X33 assets. Daily net changes are calculated by subtracting burned amounts from minted amounts. These daily deltas are then aggregated into a cumulative sum over time to determine the total outstanding supply for each day.
- **Key fields**: `amount` (asset quantities)

### Component B: Constant Product xSHADOW staking tracking

- **Purpose**: Determine the total quantity of xSHADOW assets staked within the voting module.
- **Logic**: `Deposit` and `Withdraw` events are parsed from `VoteModule` contracts for the specific xSHADOW asset address. Net changes in staked balances are calculated by subtracting withdrawal amounts from deposit amounts. A cumulative sum is applied to these daily deltas to maintain a running total of the staked supply.
- **Key fields**: `amount` (asset quantities), `token_address` (identification of the xSHADOW asset)

### Component C: Ratio calculation and floor application

- **Purpose**: Derive the floor redemption value from the relationship between staked and circulating supplies.
- **Logic**: The total staked xSHADOW balance is divided by the total X33 outstanding supply to establish a ceiling ratio. This ceiling ratio is then multiplied by 0.5 (or divided by 2) to calculate the x33 ratio floor. The resulting values are normalized by decimal precision and a forward-fill mechanism is applied to ensure data continuity across all calendar days.
- **Key fields**: `x33_ratio_ceiling`, `x33_ratio_floor`

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

0.5 * (staked_xshadow / x33_circulating_supply)

Minimum redeemable SHADOW per X33 token based on discounted backing.

x33 ratio floor