> ## Documentation Index
> Fetch the complete documentation index at: https://docs.powfi.alephium.org/llms.txt
> Use this file to discover all available pages before exploring further.

# FAQ

> Common questions about xALPH: what it is, how rewards work, how to use it, and how to convert it back to ALPH.

## ALPH Staking

### What is xALPH?

xALPH is a liquid representation of staked ALPH.

Mainnet xALPH token ID: [6dc961b59aae53c768fe6f608e6bea30f6747041af3fd800c8c6533766e54f00](https://explorer.alephium.org/tokens/6dc961b59aae53c768fe6f608e6bea30f6747041af3fd800c8c6533766e54f00)

Mainnet xALPH staking contract: [225WevmFp5ZgzPsyVJTvyp2v2uyKrvp329HfrVmzffnWj](https://explorer.alephium.org/addresses/225WevmFp5ZgzPsyVJTvyp2v2uyKrvp329HfrVmzffnWj)

When you stake ALPH:

**ALPH → locked ALPH → xALPH**

Each xALPH is backed by locked ALPH and represents your staked position.

xALPH does not replace ALPH. It lets you use your staked position in supported pools and applications while the underlying ALPH stays locked.

### How do staking rewards work?

Rewards deposited into the xALPH contract increase the ALPH backing each xALPH.

The Staking APR is the estimated annual percentage rate of rewards you can earn by staking ALPH.

xALPH holders do not receive a separate ALPH payment. Instead, each xALPH represents more ALPH as rewards are deposited.

Rewards come from:

* Powfi’s share of the DEX fees.

* Funded staking campaign rewards while a campaign is active.

The exact APR will change over time depending on network activity, protocol fees and on-going campaigns.

### Why does xALPH increase in value?

As staking rewards accumulate, the amount of ALPH backing xALPH increases.

This changes the conversion rate between xALPH and ALPH.

In simple terms:

**More rewards → more ALPH backing → each xALPH represents more ALPH**

The conversion rate changes whenever ALPH rewards are deposited into the xALPH contract. No separate ALPH payment is sent to holders; each xALPH becomes backed by more ALPH.

### How can I use xALPH?

xALPH keeps your staked position liquid where xALPH is explicitly supported.

You can use xALPH for activities such as:

* Swapping xALPH and ALPH on Powfi.

* Providing liquidity in Powfi’s ALPH/xALPH pool.

* Using xALPH in another application only when that application explicitly supports it.

* Confirming token support before depositing xALPH into any application.

xALPH does not automatically work in every DeFi application.

### Can I convert xALPH back to ALPH?

Yes. There are two ways to convert xALPH back to ALPH.

#### Official unstaking

You can use the official **Unstaking** process.

* The conversion uses the rate in effect when you press **Unstake**.

* Your ALPH unlocks **linearly over 30 days**: you can claim the unlocked part at any time, and the full amount once the 30 days end.

#### DEX

You can also swap xALPH for ALPH through a DEX such as Powfi.

* The swap is based on the live market price.

* The conversion is immediate.

* The amount you receive depends on available liquidity and slippage.

### xALPH and ALPH conversion rate

At launch, the conversion rate starts at:

**1 xALPH = 1 ALPH**

The conversion rate changes whenever ALPH rewards are deposited into the xALPH contract. xALPH holders do not receive a separate ALPH payment; each xALPH becomes backed by more ALPH.

### What happens to my ALPH when I stake?

Your ALPH is locked in the Powfi staking system.

You receive xALPH in return, which represents your staked position.

The underlying ALPH remains locked while xALPH gives you a liquid representation that can be used in supported pools and applications.


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