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BLS and xBLS can be converted into each other, but the conversion process varies depending on the direction.
At any given time, BLS can be converted to xBLS without any restrictions. This process is immediate, and the exchange rate is a fixed 1:1 ratio.
The conversion of xBLS to BLS implies vesting, and the user selects the duration. The conversion ratio will increase proportionally with the vesting duration:
- The minimum vesting duration of 15 days will provide a 1:0.5 ratio
- The maximum vesting duration of 6 months will provide a 1:1 ratio
The unclaimed excess BLS is burned if the selected vesting duration is lower than the maximum (ratio < 1:1).
While being redeemed, the xBLS is automatically allocated to the dividends plugin, but only for 50% of its value.
For instance, if a user were to redeem 1000 xBLS, he would earn dividends as if he allocated 500 to the Dividends plugin.
This allocation is automatically canceled once the vesting duration has ended.
The user can freely interrupt any xBLS redeeming process at any time.
Any canceled redeem before its end will void the whole process. The user will retrieve the entire amount of redeeming xBLS, and no BLS.