Unlike regular validator pools, the loyalty pool is tokenized. This means it wraps ADX in its own token (ADX-LOYALTY) that can be transferred, traded, locked for governance or otherwise interacted with, to take advantage of the vibrant DeFi ecosystem on Ethereum.
This token is essentially an interest-bearing ADX derivative, similar to the Yearn Finance vault system.
Additionally, the APY of the Loyalty Pool uses a new concept, called elastic issuance, which means that the APY is dependant on the current price of ADX.
The Loyalty Pool also has a cap of 30,000,000.00 tokens and when this deposit limit is reached, it will not accept any more deposits.