Zest Protocol — a collection of synthetic tokens that allows participants to speculate on the price of assets without actually owning the underlying asset. In the coming months, the Zest team will be adding a number of new assets, giving users the opportunity to speculate on a wider range of assets while enjoying great farming opportunities. Zest DAO and Treasury allow the wider community to shape the future of the protocol.
- Description of the Zest Protocol site
- How does the Zest protocol work and what do different tokens do?
Description of the Zest Protocol site
Developers are currently offering Fantom (FTM), FTM-Zest (FTMz), a synthetic token, backed by collateral. Earn attractive annual interest rates by making farm deposits with virtually no permanent losses at FTMz-FTM.
The synthetic version of the FTM token is pegged to the FTM price at a 1:1 ratio, backed by at least 90% collateral (and probably more at any given time), and algorithmically driven.
Other features:
| 1 | The Zest Synthetic Protocol (ZSP) token allows users to earn staking/farming rewards by speculating on their favorite assets. |
| 2 | The Zest protocol will contain a wide range of synthetic assets, from new, emerging crypto assets to the old guard of crypto. |
| 3 | Over time, as this offering evolves, Zest Protocol users will be able to speculate with all their favorite assets without even leaving the FTM network. |
ZSP — a token that facilitates the mechanism by which users of the protocol receive 90% of the fees, received from other market participants. Through farming and staking, users can earn passive rewards by benefiting from an increase in the price of the underlying asset.
How does the Zest protocol work and what do different tokens do?
To create an FTMz token, the user must deposit the FTM into the Zest Protocol. This FTM then becomes a pledge for FTMz, and in return, the protocol provides you with FTMz. Using FTMz, you can speculate on FTM price action and use arbitrage opportunities. In addition, you can earn APR by connecting FTM with FTMz and depositing LP tokens to Zest farms.
By using farms, you do not incur significant temporary losses, but still receive much higher annual interest rates than the current single staking opportunities for FTM. Farming rewards can be blocked or at stake, further exacerbating the APR you get with the Zest protocol.