xRAM

What is xRAM?

xRAM is a token developed by the Ramses team to address the sustainability challenge associated with earlier ve(3,3) models. xRAM combines the best of vote-escrow models with the flexibility of traditional escrow incentive systems.

No more lengthy lock-ups to participate fairly.

What can I do with xRAM?

xRAM stakers can vote to direct emissions to their favorite LP pairs and earn 100% of swap fees from gauged pools they vote for, plus vote incentives. Stake to earn HYPE from buybacks, or mint hyperRAM (liquid staked xRAM) to auto-compound rewards.

Token

xRAM is a non-transferable token minted 1:1 from RAM input. For every RAM amount converted, 50% is burned and the remaining 50% stays in the xRAM smart contract to fund direct redemption at a 1:0.5 ratio. Only holders of xRAM have voting rights on Ramses. While xRAM itself is non-transferable, it offers users the ability to exit their position when needed.

How is xRAM obtained?

Users can acquire xRAM through vote incentives, token emissions, or by converting RAM.

RAM > xRAM conversion

RAM can be freely converted into xRAM at any time. The process is instant: the full RAM input amount is minted as xRAM, 50% of that RAM input is burned, and the remaining 50% backs direct redemption.

How to exit xRAM?

xRAM > RAM redemption

Users can exit their xRAM position in two ways:

1. Direct redemption: Convert xRAM back to RAM instantly for the underlying (1:0.5 ratio)
2. Liquidity exit: Use hyperRAM, the liquid staked version of xRAM, to trade your position on the open market

AutoVaults (Relays)

Users can choose to stake xRAM in AutoVaults to receive rewards in a supported output token without voting manually or minting hyperRAM. The available output tokens are maintained on-chain and shown in the application.

After each epoch flip, the AutoVault operator collects the allocated fees and vote incentives, converts them to each user's selected output token, and credits claimable rewards. Users claim those rewards manually.

Stakers accrue their selected output token pro-rata based on stake; unstaked xRAM does not earn AutoVault rewards. Accrued rewards become claimable after processing and must be claimed by the user.

xRAM Liquid Staking

Ramses was designed to eliminate friction from the ve(3,3) model, and managing voting positions is one of the biggest sources of this friction. The liquid staked version of xRAM simplifies this process by automating voting and compounding rewards without disrupting xRAM's core mechanics.

hyperRAM

hyperRAM is the liquid staked version of xRAM and can minted with xRAM. The hyperRAM:xRAM ratio starts at 1.00:1.00 and increases in hyperRAM's favor as rewards accrue from fees and vote incentives.

After every weekly epoch flip rewards from fees and vote incentives are automatically sold to increase the hyperRAM:xRAM ratio. Below is an example showing how hyperRAM:xRAM ratio will increase over time.

Does not bypass exit fee

While hyperRAM offers instant liquidity, it doesn't circumvent xRAM's exit penalty. As the liquid staked version of xRAM, hyperRAM's market price naturally reflects the instant exit fee structure. The token cannot trade below the xRAM redemption value because arbitrageurs would immediately buy and redeem hyperRAM for xRAM to capture the difference. While hyperRAM cannot trade below the xRAM redemption value, it may trade at a premium to this based on market dynamics.

Conversion Burn

Ramses incorporates a burn mechanism that provides dilution protection for xRAM holders and permanently reduces circulating supply when xRAM is minted. This mechanism is deflationary and does not distribute burned tokens to users.

Burns occur during the conversion process, protecting remaining holders through lower circulating supply over time.

Why?

As discussed in the ve(3,3) section, ve(3,3) introduced important improvements to user alignment but still had fundamental limitations. xRAM builds on these improvements while addressing the core issues, moving the power balance back towards users. Instead:

• Stakers who remain in xRAM longer earn more fees and vote incentives.
  • Users can exit their position at any time, ensuring rewards flow to those who value it the most.

The conversion penalty creates a "survival of the fittest" ecosystem where 50% of every RAM amount converted to xRAM is permanently burned and active stakers benefit from reduced supply. Any size can exit, unlike liquid wrappers (limited liquidity) or veNFTs that are large to sell (pseudo-liquid). This deflationary mechanism makes Ramses the first deflationary ve(3,3) protocol, where each RAM → xRAM conversion reduces the remaining RAM supply.

Voting

xRAM holders are rewarded for actively participating and voting. For gauged pools, 100% of swap fees go to voters, distributed in proportion to their votes for that liquidity, along with any additional vote incentives offered by protocols to attract emissions. Ungauged pools instead direct 95% of swap fees to liquidity providers and 5% to the protocol/Sarcophagus.

Voting Breakdown

The main purpose of the xRAM token is to vote to direct emissions to liquidity. This is achieved through weekly voting for gauged liquidity. Emissions are distributed proportionally to the total percentage of votes in the Epoch.

Emission Calculation

The expected emissions can be calculated by multiplying total epoch emissions by the pair's share of all votes:

• Pair emissions = total epoch emissions × (pair votes / total votes)

For example, 100,000 RAM is distributed in a single epoch. If 10% of all votes are allocated to the RAM / USDC pair, that pair will receive 10,000 RAM tokens distributed linearly to liquidity providers of the relevant LP pair throughout the epoch.

Vote Weight Calculation

Voting power is based on the user's xRAM voting balance in the VoteModule. Users allocate that voting power proportionally across their selected pools:

Pool vote weight = xRAM voting balance × (submitted pool weight / sum of submitted weights)