How to provide liquidity
Everyone can become a liquidity provider of ZO.
ZO enables trading with Liquidity Pools funded by ZLP (ZO Liquidity Provider) token. ZLP is a certificate of a user's stake in our liquidity pool. A user can mint ZLP with native tokens supported by ZO (SUI, DEEP, USDC and more). ZLP will initially have the value of $1 per token.
ZLP holders will share the protocol profit earned from trading fees. The more people trade on ZO, the more profits will ZLP holders earn. ZLP holders can redeem them into ZO-supported native tokens at any time.
In addition, ZLP holders will be sharing fees charged for the use of ZO agents, allowing liquidity providers to earn potentially higher APY from holding ZLP.
The ZLP APY is calculated based on earned fees and net deposit asset value. Fees are deposited back into the pool directly, so ZLP holders can just earn the yield passively.
ZLP price and APY will fluctuate with the underlying token prices, trader profits and losses and protocol fees.
The ZLP mint will open in March, 2025
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