ZeroLend Docs
WebsiteApp
  • Welcome to ZeroLend
  • Overview
    • Lending and Borrowing
      • Parameters
      • zLP Token Distribution
    • Assets Listings
      • Supported Assets
  • Features
    • LRT Lending Market
    • RWA Lending
      • RWA Stablecoin Market
    • Capital Efficiency
      • High Efficiency Mode (E-Mode)
      • Isolation Mode
      • Supply/Borrow Caps
    • Liquidations
      • Liquidation Guide for Developers
    • Credit Card
  • Airdrop Incentives
    • Zero Gravity
      • Voyage 1: Zero to Zillion
        • Chapter 1: Ignition šŸ”„
        • Chapter 2: LiftOff šŸš€
        • Chapter 3: Boost ⚔
  • Governance
    • Zeronomics
      • Token Utility
      • Token Distribution
      • Staking
        • Single Token Staking
        • zLP Staking
        • Stake on StakeDAO (sdZERO)
      • Emissions
        • Emission Strategy
          • Protocol Power/Weight
          • Deconstructing the Weighted Percentage (T_p) Calculation
          • Construction of zLP & $ZERO Power
      • Buybacks and Burn
    • Discussion Forum
  • Security
    • Audits
    • Oracles
      • PYTH Oracles
      • Redstone
      • API3 Oracles
      • Chainlink
      • eOracle
    • Deployed Addresses
    • Timelocked Multisig Admin
    • Insurance Fund
  • Tutorials
    • Basic Tutorials
      • Supply Assets
      • Borrow Collateral
      • Claim ZERO
      • Stake ZERO
    • Yield Strategies
      • Passive LRT Strategies
      • Leverage Exposure
    • Guidebook: Farm on Linea Market
    • Stake ZERO (zLP) Tokens
  • Important Links
    • Twitter
    • Discord
    • Github
Powered by GitBook
On this page
  • Enhanced Weighting for $ZERO
  • Calculation Method
  • Time-Locking Coefficients

Was this helpful?

Edit on GitHub
  1. Governance
  2. Zeronomics
  3. Staking

zLP Staking

The Liquidity Provision model for $ZERO is specifically designed for users who contribute to liquidity pools. When users stake zLP tokens, their $ZERO portion is effectively doubled in value for staking purposes.

Enhanced Weighting for $ZERO

A distinctive feature of the zLP ve-staking model is the enhanced weighting given to $ZERO tokens at the time of staking. When calculating the value of a user's contribution to the liquidity pool, the $ZERO component is effectively considered to double its presence in the pool.

Example: If a user's liquidity pool token consists of 50% $ZERO and 50% $ETH, the weighting mechanism acknowledges the $ZERO component as if it were 100% of the contribution.

When staking is locked, the zLP weighting for $ZERO is counted as double its amount in the liquidity pool token.

Calculation Method

$veZERO earned is the product of the quantity of zLP tokens staked and a locking factor LzLPL_{zLP}LzLP​. As mentioned already, $ZERO tokens in the zLP stake are given double weight. Hence, (2Ɨ$ZERO) (2 \times \$\textrm{ZERO})(2Ɨ$ZERO).

$veZERO=zLPƗLzLP\$\textrm{veZERO} = zLP \times L_{zLP}$veZERO=zLPƗLzLP​
$veZERO=(2Ɨ$ZERO2)ƗLzLP \$\textrm{veZERO} = (2 \times \$\textrm{ZERO}_2) \times L_{zLP}$veZERO=(2Ɨ$ZERO2​)ƗLzLP​

Time-Locking Coefficients

Another distinctive feature of the zLP ve-staking model is time-locking coefficients. ZeroLend modifies the time-locking coefficients for zLP stakes to suit the unique risk profile of liquidity pool tokens. The following is the time scale for zLP:

Time Lock
L_dLP - Value

1-Months

0.0625

3-Months

0.25

6-Months

0.5

12-Months

1.0

This adjusted time scale reflects the nuanced differences in risk profile compared to staking single assets.

Practical Example

A user staking 10,000 zLP tokens, split into 5,000 $ZERO and an equal value of $ETH for a 6-month period, will be allocated 5,000 $veZERO.

The formula for $veZERO Allocation:

The total $veZERO a user receives is determined by:

$veZERO=$ZEROƗLZERO+zLPƗLzLP\$\textrm{veZERO} = \$\textrm{ZERO} \times L_{ZERO} + zLP \times L_{zLP}$veZERO=$ZEROƗLZERO​+zLPƗLzLP​

In this equation:

  • LZEROL_{ZERO}LZERO​ and LzLPL_{zLP}LzLP​ represent the time-locking coefficients for single-asset $ZERO and zLP stakes, respectively.

  • zLPzLPzLP is valued as twice the amount of $ZERO present at the time of staking.

To clarify, the formula accounts for the different quantities of $ZERO in single and dLP stakes:

$veZERO=$ZERO1ƗLZERO+(2Ɨ$ZERO2)ƗLzLP\$\textrm{veZERO} = \$\textrm{ZERO}_1 \times L_{ZERO} + (2 \times \$\textrm{ZERO}_2) \times L_{zLP}$veZERO=$ZERO1​×LZERO​+(2Ɨ$ZERO2​)ƗLzLP​

Here, $ZERO1\$\textrm{ZERO}_1$ZERO1​ and $ZERO2\$\textrm{ZERO}_2$ZERO2​ denote the respective amounts of $ZERO in single staking and within the zLP.

PreviousSingle Token StakingNextStake on StakeDAO (sdZERO)

Last updated 11 months ago

Was this helpful?