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🔒 SuperStaked tokens are tradeable but cannot be withdrawn from the staking contract.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