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Zest Protocol is a protocol for synthetic tokens that lets participants trade on the price of assets without holding the actual underlying asset. Whenever a user mints or redeems a synthetic asset, they pay a 0.3% or 0.5% fee (paid in the base asset, e.g.: FTM - further details), respectively. Those fees are then shared with users who have locked or staked ZSP. Fee distribution is handled manually, with the Zest DAO having the final authority to distribute fees.
Holders can stake their ZSP to earn passive income. Staked ZSP can be withdrawn at any time and there is no withdrawal penalty. Fees produced by Zest Protocol are distributed to users in proportion to how much ZSP they have staked. More staked ZSP means larger potential rewards.
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