Zest Protocol

Benefits of Zest Protocol

Practical applications of Zest Protocol and Synthetic Assets

User Benefits

Protocol Fee Revenue
Every time a users mints or redeems any synthetic asset a 0.3% or 0.5% fee is paid (in the base asset, eg: FTM - further details), respectively. These fees are then distributed to users who have locked or staked their ZSP. We distribute fees manually, the Zest DAO has the ultimate authority to distribute fees.
You should know that the development team takes a 10% cut of these fees (for buybacks and burns, community building, and marketing expenses), lockers and stakers receive the remaining 90%.
Minting and redeeming fees will be subject to governance of the Zest DAO, but are expected to fluctuate during launch.
Users that lock ZSP receive ZSP and FTM, users that only stake ZSP receive FTM.
Early Exit Penalty Revenue Besides FTM and ZSP revenue for users who stake their ZSP, those that lock their ZSP also earn the penalty fees from those who claim their rewards early.
Collateral Requirements
When FTMz is minted, the Protocol automatically buys the necessary ZSP, if the collateral ratio is below 100%. The requirement to have ZSP creates a constant need for ZSP and therefore maintains steady buy pressure. The lower the collateral ratio becomes, the greater the buying pressure may become.
The collateral ratio is mostly adjusted algorithmically, but subject to parameters that are ultimately controlled by the Zest DAO.
Synthetic Assets on the Zest Protocol
The Zest Protocol team are committed to including new synthetic assets on the protocol when we see assets with good community engagement. This will only further the need to ZSP and allow users to continue to accrue protocol revenue.
Reputable non-CEX protocol
Want to speculate on an assets price but can't or don't want to use a CEX? Purchasing the corresponding synthetic asset on the Zest Protocol allows users to benefit from the price changes whilst remaining in the DeFi space.