Stake ZU
Stake ZU to earn zUSD rewards. ZU is converted into eZU at a 1:1 ratio when staked, which earns a yield generated from Managed Treasury Value productivity.
The yield earned through ZU staking is a real yield and not inflationary rewards. This is generated through productive use of the Treasury reserves, ensuring the stability and sustainability of the ecosystem in the long run.
Unstaking
The process of unstaking eZU to ZU involves a dynamic day withdrawal period. Once a user redeems eZU, ZU will arrive in their wallet based on the time indicated in the UI.
Dynamic Redemption Period Based on Collateral Ratio
The redemption period — the time users must wait to access their unstaked tokens — varies with the collateral ratio of zUSD:
Collateral Ratio Influence:
The CR impacts the redemption period notably when it is between 80% and 110%. For values below 80%, the CR is treated as 80% to maintain a baseline level of stability.
As the CR increases from 80% to 110%, the maximum redemption period decreases linearly, signifying increased stability and reduced risk.
Redemption Period Calculation:
Maximum Duration Formula: If the CR is below 80%, it is considered as 80%. The maximum duration is calculated using the formula:
Minimum Duration Formula: The minimum duration is calculated to ensure minimum liquidity standards:
Impact of Redemption Period on Redeemed Amount
The selected redemption period influences the amount of tokens users can redeem after unstaking:
Full Duration for Full Amount: Choosing the maximum duration permitted by the current CR allows users to retrieve all their unstaked tokens without any deductions.
Interpolated Redemption for Shorter Durations: For durations shorter than the maximum, the redeemable amount is calculated through linear interpolation between a minimal threshold and the full unstake amount, based on the selected duration relative to the maximum period. This system encourages users to contribute to platform stability by opting for longer lock-up periods.
Last updated