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What PointsToken Does For You

PointsToken is a standard ERC20 that represents actual exchange points, 1:1. Unlike ST and EPT which reset each epoch, there’s one PointsToken per exchange that stacks across all epochs.
PointsTokenExchangeChainMeaning
xPCPacificaSolana1 xPC = 1 Pacifica point
xHLHyperliquidHyperliquid L11 xHL = 1 Hyperliquid point
xETExtendedStarkNet1 xET = 1 Extended point
Your xPC from Epoch 1 and Epoch 7 are the same token. They stack.

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How PointsTokens Are Minted

PointsTokens are only minted post-finalization. The path:
  1. Epoch ends → strategy unwinds
  2. Final Points Oracle reports totalPoints
  3. Admin calls finalize()
  4. You call claimPoints() on your EPT
  5. Credits settled → gross points computed → redemption fee deducted → PointsTokens minted to your wallet
There is no other way to create PointsTokens. They aren’t minted on deposit, bought from ArcX, or distributed via airdrop. The only path: hold EPT → accrue credits → claim after finalization. (Exception: admin can mint for LPs via PointsCollector for pool credit distribution.)

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The Backing: Trust, Not Proof

Every PointsToken should correspond to a real exchange point in ArcX’s exchange account: PointsToken supply≤real points held by ArcX\text{PointsToken supply} \leq \text{real points held by ArcX} This invariant is enforced by trust, not code. ArcX reports totalPoints via its own oracle. There is no on-chain proof that the number is accurate. You are trusting ArcX to report points honestly, bridge airdrop tokens faithfully after TGE, and maintain 1:1 backing between PointsToken supply and real points held. The biggest trust assumption in the protocol. Community members can retrospectively verify by cross-referencing post-TGE airdrop amounts with PointsToken supply. For the complete analysis (what exactly you’re trusting, what could go wrong, and how to verify), see Trust Model & Security.
PointsTokens are on-chain ERC20s. They stay in your wallet regardless. However, post-TGE redemption requires ArcX to bridge airdrop tokens into the Redemption Module. If ArcX ceases operations before TGE, that path is broken.
If an epoch is never finalized, EPT credits cannot be claimed and PointsTokens cannot be minted for that epoch. Users retain their ST and can redeem for the strategy’s USDC returns once finalization eventually happens, but their points exposure for that epoch is lost. You keep the USDC side (ST) but lose the points side (EPT cannot convert to PointsTokens without finalization reporting totalPoints).

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Post-TGE Redemption

When an exchange conducts its TGE:
  1. Exchange sends airdrop tokens to ArcX
  2. ArcX bridges them to Starknet
  3. Tokens deposited into the Redemption Module
  4. Conversion rate set: redemptionRate = totalAirdropTokens / totalPointsTokenSupply
  5. You burn PointsTokens → receive airdrop tokens
Multi-tranche support: Airdrops arrive in batches. You don’t have to redeem all at once. Burn a portion now, save the rest for later batches when the rate may be higher. Example: You hold 1,000 xPC.
EventActionResult
Batch 1: 50,000 PDX for 100,000 xPC supplyBurn 500 xPC250 PDX
Batch 2 (3 months later): rate rises to 0.8Burn remaining 500 xPC400 PDX

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What Drives PointsToken Price

FactorEffectMechanism
TGE timingCloser TGE → ↑ priceLess time discounting
Expected airdrop generosityMore tokens/point → ↑ priceExchange announcements
Exchange token price (post-TGE)Direct linkxPC ≈ redemptionRate × PDX price
Supply growthMore epochs → more supply → potential dilutionNew PointsTokens minted each epoch dilute existing holders’ share of the eventual airdrop, since the same airdrop pool is split across a larger PointsToken supply
PointsTokens are standard ERC20s. Transfer, trade, or hold freely.
  • No TGE: If the exchange never launches a token, PointsTokens have no redemption path.
  • Over-minting: ArcX could mint more PointsTokens than real points held. No on-chain enforcement.
  • Low airdrop: Exchange distributes fewer tokens per point than expected.
  • Vesting: Airdrop tokens may come with lockups on the exchange’s timeline.