Staking

Staking is an essential component of the ZolTAO ecosystem, as it allows TAO token holders to earn a share of the borrowing and redemption fees generated in dCNY and ETH. This document provides a detailed overview of the staking process, earning potential, and other related aspects.

How Staking Works in ZolTAO:

1. Deposit TAO tokens: To begin staking, simply deposit your TAO tokens into the ZolTAO staking contract.

2. Earn pro-rata share of fees: Once your TAO tokens are deposited, you will start earning a pro-rata share of the borrowing and redemption fees in dCNY and ETH.

Earnings Potential for Staked TAO:

1. Share of fees: Your staked TAO tokens will earn a share of the fees equal to your share of the total TVL (Total Value Locked) staked, at the instant the fee occurred.

Lock-up Period:

1. No lock-up: There is no lock-up period for staking TAO tokens, allowing you to withdraw your staked funds at any time.

Staking dCNY:

1. TAO tokens only: Staking is available only for TAO tokens. You cannot stake dCNY directly.

2. Stability Pool and LP staking: dCNY can be deposited into the Stability Pool to contribute to the stability of the ZolTAO protocol. Alternatively, dCNY can be paired with ETH to form a liquidity pool (LP) and staked to earn rewards.

Staking is an integral part of the ZolTAO ecosystem, allowing TAO token holders to earn rewards from the borrowing and redemption fees generated. With no lock-up period, staking offers flexibility and accessibility for users looking to participate in the growth and development of the ZolTAO protocol.