Protocol Owned Liquidity
Adding Extra Value to Zest Protocol
Projects in the DeFi often struggle with a lack of liquidity, or unstable liquidity, increasing and decreasing by the day. In an effort to reduce this volatility and give value to the Zest Protocol, we will be utilising a model similar to that of the Olympus DAO to produce 'Protocol Owned Liquidity'.
Protocol Owned Liquidity (POL) allows Zest Protocol to add liquidity to the ZSP/FTM LP as necessary. POL is created automatically when the CR > 100 and users mint synthetic assets. The LP tokens are held by the Zest Treasury.
Depending on protocol conditions, we can request ZSP from the treasury to burn or move liquidity to different assets as required.