zkLend is excited to introduce ZEND staking coming live on 24th July 2024 0900 GMT. ZEND staking is an important feature to further safeguard asset security on zkLend and it is also a crucial part of the protocol’s decentralization roadmap.
ZEND staking allows ZEND holders to attribute their tokens to zkLend’s safety module, and in return the holders will receive staking reward emissions (i.e. stake reward APY) on their funds. The safety module is a risk mitigation tool to buffer for bad debts due to extreme market volatilities. zkLend has not suffered from any bad debt events since its launch, and the staking program shall be seen as an added insurance policy that will make zkLend more robust and decentralized.
Staking and Unstaking
To stake ZEND, token holders simply access the Staking tab within the zkLend dapp to attribute their tokens to the staking program. The staking reward accumulates in real-time and can be claimed anytime.
To unstake ZEND, token holders will need to give instruction to unstake manually, also in the Staking tab of the zkLend dapp. There will be a 7-day cooldown period to withdraw the staked ZEND, during this time the unstaked ZEND will be locked and will not be entitled to any staking reward. Token holders can withdraw their ZEND in the app once the cooldown period has ended.
Staking Reward Emission
ZEND staking will have a fixed weekly emission — the emission schedule may be updated from time to time in order to align with changes in total amount staked and staking cap.
The initial emission is set at 4,807 ZEND per week. Assuming a total average of 1M ZEND staked during the week, the staking reward APY would equal 25% per annum. In addition, a staking cap of 2.5M ZEND is applied to ensure a minimum staking reward APY of 10% per annum.
Next Steps
ZEND staking is a milestone for the protocol’s overall decentralisation plan. Leveraging on the staked ZEND positions, zkLend will continue to roll out other governance and loyalty features that allow stakers to vote and participate in decisions related to financing rate subsidies, liquidation profit distribution, gas fee subsidies, adding new asset pools, and more.
About zkLend
zkLend is the native money-market protocol on Starknet, an L2 scaling solution combining zk-rollup scalability, superior transaction speed, and cost-savings with Ethereum’s security.
