🎛️Governance Staking (Soon)

Fees generated from the usage of ZEN Finance products are distributed to ZENH stakers according to their share of the ZENH staked.

The allocated daily distribution of USDC rewards for ZENH Stakers changes every week on Friday. It is based on last week's performance (amount of accumulated fees) and may be set higher or lower comparing to current daily distribution.

"Rewards per day" is an estimate, and the actual rewards received may differ when block times are longer than normal.

1. Admin Fees

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Stake ZENH to earn admin fees from ZenSwap (in USDC). The current Admin fee is 100%. This means that all fees generated from the usage of ZEN Finance products are distributed to ZENH Stakers.

Example: The ZenSwap trading fee is currently 0.02%. The whole fee from each ZenSwap trade (100% = 0.02%) will be distributed for ZENH stakers.

The Mint/Redeem fees of the Zen Stablecoin are currently accruing, and will go to ZENH stakers.

Fees from Zenlend are also currently accruing in the Lend Reserve, but are not yet available to be distributed.

2. Stake ZENH to earn partner’s profit-sharing

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• For example, via profit-sharing from liquid provider (in ZENH and ETH), we will straight away burn the equivalent USD amount of ZENH, and the ETH amount will be converted to USDC and distributed as profit for ZENH Stakers.

3. Upcoming ZEN Finance products

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• Usages in future Product from Zen ecosystem will aim to deliver admin fees to ZENH holders.

Conclusion and Additional Clarification

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Investors staking ZENH for a longer duration receive more $ZEN and therefore upon staking it will be able to receive a bigger profit share. However, this doesn't affect the user's ability to retrieve ALL their staked $ZEN at the end of their staking period (or upon unstaking early after accepting the 30% Penalty).

Example: Investor A and Investor B both decide to lock 300 $ZEN each

• Investor A: locks his ZEN for 3 years, receiving 300 $ZENH , then stakes them all to earn USDC profit

• Investor B: locks his ZEN for 1 year, receiving 100 $ZENH , then stakes them all to earn USDC profit

Because A is staking his ZEN 3 times longer, he will receive 3 times the profit share as investor B, despite both locking the same amount of ZENH . Finally...

• After 1 year, Investor B can withdraw his 300 ZEN back and the returned 100 ZENH is burned

• After 3 years, Investor A can withdraw his 300 ZEN back and the returned 300 ZENH is burned