Tokenomics
Tax Structure
Buy tax - 2% (2% LP rewards & 3% marketing).
Sell tax - 2% In traditional DeFi protocols, liquidity providers (LPs) usually have to "stake" or lock up their LP tokens in a separate contract to earn rewards. This process can be a bit cumbersome and sometimes risky due to smart contract vulnerabilities. However, Zeal Protocol has introduced a groundbreaking feature called "No-staking LP Rewards." This mechanic allows liquidity providers to retain ownership of their LP tokens while still earning rewards. Zeal Protocol utilizes the donate function of Uniswap Pools. This function distributes rewards proportionally to liquidity providers. These rewards are in addition to the swap fees earned from regular trading. So, as an LP, you're earning double rewards - swap fees plus the additional rewards from the donate function.This innovative approach simplifies the process for LPs and adds an extra layer of incentive to provide liquidity. It's a win-win situation for everyone involved!
To further enhance the innovative rewards system and leverage the tokenomics, Zeal Protocol offers its own compound and yield booster bots. These are fully gas-optimized, designed to maximize gains for LP providers, saving them both time and effort. In addition to this, the service fees generated from the utilities of Zeal Protocol further flow directly into the LP rewards.
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