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 🔒 SuperStaked tokens are tradeable but cannot be withdrawn from the staking contract.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