You use the var and param statements to declare variables and parameters. In SLAX, the variable name contains the dollar sign even in the declaration, unlike the name attribute of <xsl:variable> and <xsl:parameter>.
param $fido;
var $bone;
The XSLT equivalent:
<xsl:parameter name="fido"/>
<xsl:variable name="bone"/>
You can declare an initial value by following the variable name with an equal sign (=) and an expression.
param $dot = .;
var $location = $dot/@location;
var $message = "We are in " _ $location _ " now.";
The XSLT equivalent:
<xsl:parameter name="dot" select="."/>
<xsl:variable name="location" select="$dot/location"/>
<xsl:variable name="message" select="concat('We are in ', $location, ' now.')"/>