# Conversion / Redemption

ST and xST are convertible through a conversion mechanism with different rules correlated to the direction of the conversion.

The conversion process occurs on the staking page, for which the direct link can be found below:

{% embed url="<https://socialtrade.io/staking/>" %}

<figure><img src="/files/OvZ5ZOv9DqasRcfHe2HA" alt=""><figcaption></figcaption></figure>

### <mark style="color:blue;">ST to xST Conversion</mark>

Frictionless and instantaneous, the ST -> xST conversion doesn't have any particular constraint and is based on a 1:1 ratio.

**Ex:** You want to convert 10 *ST*, you receive 10 *xST*.

### <mark style="color:blue;">xST to ST conversion</mark>

Due to its nature, xST has a major and essential role in the everyday life of our protocol. To incentivize xST holders to allocate their tokens for a good amount of time to the different plugins offered, the xST token is subjected to vesting mechanisms.

The vesting period implies different ratios impacting the conversion process output:

* **Minimum vesting period**: <mark style="color:blue;">15 days</mark> - <mark style="color:orange;">ratio 1:0.5</mark> (for <mark style="color:red;">5 xST</mark>, user will get <mark style="color:red;">2.5 $ST</mark>)
* **Maximum vesting period**: <mark style="color:blue;">6 months</mark> - <mark style="color:orange;">ratio 1</mark> (for <mark style="color:red;">5 xST</mark>, user will get <mark style="color:red;">5 $ST</mark>)

For any vesting period under 6 months (ratio < 1:1) the remaining xST tokens are burned. For example, for the minimum vesting period of 15 days and 5 xST, the user will get back 2.5 ST, and 2.5 xST will be burned, reducing the ST circulating supply.

```
Vesting ratio formula : 0.5 + (0.5 * ( Nb of days / 180))
```

{% hint style="info" %}
If the selected vesting duration is lower than 6 months (ratio < 1:1), the unredeemable amount of xST during the xST to ST conversion process is going to be burned, decreasing the ST circulating supply.
{% endhint %}

### <mark style="color:blue;">Rewards during the xST to ST conversion</mark>

During the redemption period, the amount of xST concerned by the redeem process will be automatically allocated to the **Locked Staking Module**, and the owner will get only 50% of the expected rewards. The remaining 50% rewards will be shared amongst the xST stakers who allocated to the dividend plugin.

{% hint style="info" %}
The redeem process reduces the rewards of the user by 50%. This reduction benefits the other users of the plugin concerned by allowing them to share the remaining rewards (50%).
{% endhint %}

### <mark style="color:blue;">Concrete example</mark>

I own 3000 ST. I decide to convert them to xST in order to be able to allocate them to the Dividends Plugin. After 2 months of collecting rewards, I want to convert back my xST to ST. At this moment, I have to choose a vesting period based on the conversion process ratio explained above. This vesting period is the redemption period.

If I choose a 6 months vesting period, I'll get back the same amount of ST. In this example, 3000 ST.

If I want to get my ST back right after only 15 days of vesting, I will only get 50% of my initial deposit, 1500 ST.

Between the 15 days vesting period with a ratio of 1:0.5 and the 6 months vesting period with a ratio of 1:1, a linear curve is used to calculate the evolution of this conversion ratio.&#x20;

{% hint style="info" %}
Please refer to the vesting ratio formula above if you want to know precisely what ratio will be applied based on the vesting period chosen.
{% endhint %}

During this vesting period or redemption period, I will only get 50% of the rewards I used to retrieve before deciding to start the redemption. For this entire redemption period, the others 50% are going to be distributed to all the investors who have decided to allocate their xST to the same plugin as me.

At the end of the redemption period, and if i've chosen a vesting or redemption period lower than 6 months, the remaining xST lost will be burned and the ST circulating supply will decrease subsequently.&#x20;


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