Construction of zLP & $ZERO Power

ZeroLend's zLP power, closely mirroring Radiant Capital's model, is a pivotal metric in determining a user's influence within the protocol and their corresponding emissions rewards. Here's a streamlined explanation of how it works:

zLP Power Calculation (P_zLP)

• zLP Power (P_zLP): This metric reflects a user's share of the total zLP pool, adjusted by a locking multiplier to reward longer commitments.

$P_{zLP} = zLP_{tp} \times L_{zLP} = \frac{zLP}{\textrm{Total zLP}} \times L_{zLP}$

• $P_{zLP}$ is the user's total percentage of zLP relative to the entire pool.

• $L_{zLP}$ is the locking multiplier, enhancing power with longer lock periods.

The longer the user locks zLP, the greater the power they have and, ultimately, the greater the emissions the user receives.

Single-Staked $ZERO Power (P_Z)

• $ZERO Power (P_Z): Similar to zLP power, this calculates a user's stake in the total $ZERO pool, also influenced by the duration of the stake.

$$P_{Z} = \$\textrm{ZERO}_{tp} \times L_{Z} = \frac{\$\textrm{ZERO}}{\textrm{Total ZERO}} \times L_{Z}$$

The following are the weighting coefficients:

Time Lock	L_d-Value	L_z - Value
1-Months	2	0.5
3-Months	6	1.5
6-Months	12	3
12-Months	24	6
24-months	n/a	12
48-months	n/a	24

Combining Powers for Total Protocol Power

By integrating both zLP and $ZERO powers, the total Protocol Power is derived, factoring in both contributions and their respective locking multipliers.

$$P = P_{zLP} + P_{Z} = zLP_{tp} \times L_{zLP} + \$\textrm{ZERO}_{tp} \times L_{Z} \\ \hspace{2em}\\= \frac{zLP}{\textrm{Total zLP}} \times L_{zLP} + \frac{\$\textrm{ZERO}}{\textrm{Total ZERO}} \times L_{Z}\hspace{0.8em}$$

Final Equation for Protocol Power

$$\textrm{Protocol Power} = (P) \times f(T_p) \\ = (\frac{zLP}{\textrm{Total zLP}} \times L_{zLP} + \frac{\$\textrm{ZERO}}{\textrm{Total ZERO}} \times L_{Z}) \times f(4 \times \frac{\$\textrm{ZERO}_2 \times 2}{Deposits} + 1 \times \frac{\$\textrm{ZERO}_1}{Deposits})$$

This formula underscores the significance of both liquidity provision and single asset staking in enhancing a user's impact on the protocol's governance and reward distribution, thereby incentivizing long-term participation and investment.

This functionality is scheduled to go live shortly.