$xFER token is the yield-bearing token of the Ferro Protocol. Users can opt to convert $FER to $xFER at the prevailing exchange rate at any time. Ferro Protocol directs a certain portion of the protocol revenues (e.g. swap fees) into the $FER:$xFER conversion contract, resulting in the continuous increase of $xFER over $FER over time.
If you stake your LP tokens after providing liquidity to our pools and harvest your $FER rewards, 40% of the rewards will be directly converted into $xFER and locked in the 1-month vault, which will give you extra $FER rewards at a higher APR.
You can also choose to upgrade your $xFER vault to the ones with a longer locking duration with a higher APR to further boost your $FER rewards. Each batch of $xFER locked in the vault can only be withdrawn after the end of the locking duration of each batch.
As for the $FER tokens harvested and credited to your wallet, you are free to convert them into $xFER by staking, sell them directly, or use them to provide liquidity back into the protocol.
Any unlocked $xFER tokens can also be converted back to $FER by unstaking under Stake.