# Liquidity Generation Event

## Liquidity Generation Event (LGE)

<figure><img src="https://177868434-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSlTSu0KE9LIkP18XCClS%2Fuploads%2FjJbjkzh91l6F1HLwwA9x%2Fimage.png?alt=media&#x26;token=d8ed77c1-0504-4635-b911-6a13e28a406c" alt=""><figcaption></figcaption></figure>

A fair launch mechanism for community participation in initial liquidity provision.

### Overview

| Parameter                     | Value                       |
| ----------------------------- | --------------------------- |
| **Total ZNT to Participants** | 875,000 ZNT (3.5%)          |
| **ZNT to Liquidity Pool**     | 625,000 ZNT (2.5%)          |
| **Total LGE Allocation**      | 1,500,000 ZNT (6%)          |
| **Accepted Asset**            | ctUSD                       |
| **Vesting**                   | 50% TGE, 50% over 12 months |

### Guaranteed 28% Bonus

We're putting **625,000 ZNT** into the liquidity pool, but distributing **800,000 ZNT** as base allocation to participants.

That's a **28% bonus** for everyone, guaranteed, regardless of how much is raised.

### How It Works

#### Step 1: Deposit ctUSD

Deposit ctUSD into the LGE contract during the event period.

#### Step 2: Receive Base Allocation

Your base ZNT allocation is proportional to your share of total deposits.

```
Your ZNT = (Your ctUSD / Total ctUSD) × 800,000 ZNT
```

**Example:**

* Total ctUSD raised: $500,000
* Your deposit: $5,000 (1% of total)
* Your ZNT: 1% × 800,000 = **8,000 ZNT**

#### Step 3: Milestone Bonus

An additional **75,000 ZNT** bonus pool is distributed based on total funding milestones:

| Funding Range       | Bonus Rate | Max Bonus  |
| ------------------- | ---------- | ---------- |
| $0 – $50,000        | 50%        | 25,000 ZNT |
| $50,000 – $100,000  | 40%        | 20,000 ZNT |
| $100,000 – $200,000 | 30%        | 30,000 ZNT |

Any unused bonus is distributed pro-rata to all participants.

#### Step 4: Liquidity Creation

After the LGE closes:

1. Raised ctUSD + 625,000 ZNT creates the **ZNT/ctUSD** pool
2. LP tokens are permanently staked on Satsuma
3. 90% of LP rewards go to ZNT stakers

### Allocation Breakdown

| Destination           | Allocation | ZNT       | Purpose                   |
| --------------------- | ---------- | --------- | ------------------------- |
| **To Participants**   | 3.5%       | 875,000   | Distributed to depositors |
| **To Liquidity Pool** | 2.5%       | 625,000   | Paired with ctUSD for DEX |
| **Total**             | 6%         | 1,500,000 |                           |

**Participant Breakdown:**

* Base: 800,000 ZNT (everyone, pro-rata)
* Milestone Bonus: 75,000 ZNT (based on funding tiers)

### Value Proposition

#### \~28% Bonus at Launch

| Metric                  | Value                   |
| ----------------------- | ----------------------- |
| Your ctUSD Contribution | $1,000                  |
| ZNT Received            | Based on pro-rata share |
| ZNT Value at Launch     | \~$1,280 equivalent     |
| **Effective Bonus**     | **\~28%**               |

> 💰 This bonus comes from the protocol's contribution to the liquidity pool.

#### Ongoing Benefits

| Benefit            | Description                            |
| ------------------ | -------------------------------------- |
| **Deep Liquidity** | Large initial pool reduces slippage    |
| **LP Rewards**     | Staked LP generates continuous rewards |
| **Staker Yield**   | 90% of LP rewards flow to ZNT stakers  |

### Token Distribution Timeline

| Milestone  | Unlock                                   |
| ---------- | ---------------------------------------- |
| TGE        | 50% (437,500 ZNT)                        |
| Month 1–12 | 50% vested linearly (\~36,458 ZNT/month) |

### Participation Checklist

* ✅ Prepare ctUSD on Citrea network
* ✅ Deposit during LGE period
* ✅ 50% unlocks at TGE, 50% vests over 12 months
* ✅ Consider super-staking for +15% rewards
* ✅ Join Discord for LGE announcements

### FAQ

**Q: Is there a minimum deposit?**

No minimum. Any amount of ctUSD can participate.

**Q: Is there a maximum deposit?**

No maximum. Allocation is proportional to your share of total deposits.

**Q: When do I receive my ZNT?**

50% at TGE, remaining 50% vests monthly over 12 months.

**Q: Can I withdraw my ctUSD?**

Deposits are locked until distribution after LGE closes.