Utility of ZNT

Token Utility

The ZNT token serves multiple functions within the Zentra ecosystem, creating value through governance rights, rewards sharing, and protocol incentives.

Utility Overview

Function
Description

Governance

Vote on proposals, parameter changes

Staking

Earn fees, SUMA rewards, ZNT or USDC payouts

Incentives

Supply APY, Borrow APY, LP rewards

1. Governance

ZNT holders participate in protocol governance, shaping the future of Zentra.

Voting Rights

Action
Description

Protocol Parameters

Adjust interest rate models, collateral factors

New Markets

Vote to add new lending/borrowing assets

Emission Adjustments

Modify reward distribution splits

Treasury Allocation

Direct protocol growth funds

Upgrades

Approve smart contract upgrades

Governance Process

Phase
Duration

1. Proposal

Submit proposal

2. Discussion

3 days

3. Voting

5 days

4. Execution

Timelock delay

💡 Staked ZNT (sZNT/uZNT) retains full voting power.

2. Staking & Rewards accumulation

Stake ZNT to earn a share of protocol rewards and external rewards.

Rewards Sources

Source
Description
Staker Share

Protocol Fees

Interest spread, liquidation fees, flash loan fees

90%

Satsuma Rewards

SUMA earned from LP bribes

90%

Staking Options

Pool
Reward Token
Bonus
Lock Period

sZNT

ZNT

7-day unstake

uZNT

USDC

7-day unstake

SuperStake

ZNT or USDC

+15%

Permanent

🔒 SuperStaked tokens are tradeable but cannot be withdrawn from the staking contract.

3. Liquidity Incentives

ZNT rewards drive protocol activity and liquidity depth.

Emission Distribution

Recipient
Share
Purpose

Borrowers

70%

Reduce effective borrow cost

Suppliers

10%

Reward liquidity providers

Satsuma Bribes

20%

DEX liquidity incentives

Earning ZNT

Activity
Rewards

Supply assets to Zentra

Base APY + ZNT emissions

Borrow from Zentra

ZNT emissions (reduces net cost)

Provide ZNT/USDC LP

SUMA rewards via bribes

Stake ZNT

Protocol fees + SUMA distribution

4. Satsuma Flywheel

ZNT powers a sustainable liquidity flywheel through Satsuma integration.

How it works:

  1. ZNT Bribes (20% of emissions) → Satsuma voters

  2. Satsuma Voters → Vote for ZNT/USDC pool → LP Rewards (SUMA)

  3. LP Growth → Deep liquidity, low slippage

  4. ZNT Stakers → Receive 90% of earned SUMA

This creates a self-reinforcing cycle of liquidity and rewards.

5. Fee Discounts (Future)

Planned utility expansions for ZNT holders:

Feature
Benefit
Status

Reduced liquidation penalty

Lower penalty for ZNT stakers

Planned

Priority liquidation rights

First access to liquidate positions

Planned

Enhanced collateral factor

Higher borrowing power with staked ZNT

Planned

Value Accrual Summary

Protocol Rewards to Stakers

Source
Flow

Interest spread

90% to stakers

Liquidation fees

90% to stakers

Flash loan fees

90% to stakers

SUMA from bribes

90% to stakers

Governance Rights

  • Protocol control

  • Parameter adjustments

  • Treasury management

  • Strategic decisions

Supply Reduction

  • Team tokens super-staked (permanent)

  • LP tokens locked

  • Emission decline over time

Why Hold ZNT?

Reason
Benefit

Rewards accumulation

Earn protocol fees and SUMA rewards

Governance Power

Shape protocol direction

Aligned Incentives

Team tokens permanently staked

Growing Ecosystem

First-mover on Citrea DeFi

Deflationary Mechanics

Decreasing emissions over time

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