In 2024, Zeebu introduced its biggest update till date, decentralized settlement protocol and staking framework, designed to enhance liquidity, optimize settlements, and empower participants to contribute to the protocol's operations and governance.
The Zeebu Protocol emerged as a decentralized liquidity engine, purpose-built to support settlements for high-frequency industries with its sophisticated ecosystem which integrates multiple participant roles and cutting-edge mechanisms to deliver secure, efficient, and decentralized settlement solutions. At the core of this protocol lies its staking infrastructure, empowering participants to actively contribute and benefit from the ecosystem.
To assist the community in understanding the features and functionality of the staking infrastructure, this blog will provide a comprehensive breakdown covering:
1. Overview of Staking in Zeebu Protocol
2. Staking Rewards and Participant Roles
3. Core Components Overview
What is Zeebu Protocol Staking?
Zeebu Protocol Staking is a foundational element of the decentralized liquidity infrastructure powering Zeebu’s settlement ecosystem. It allows participants—including Delegators, Deployers, and On-Demand Liquidity Providers (OLPs)—to actively contribute by staking ZBU tokens. This staking model not only supports the liquidity optimization required for efficient settlements but also reinforces the decentralized nature of the protocol by enabling participants to earn rewards and play a role in governance.
This framework empowers users of all levels, from businesses to individual contributors, to engage with the ecosystem while promoting security, decentralization, and growth.
Key Ecosystem Participants
Each participant plays a unique role within the ZBU Protocol:
1. Delegators
- Role: Delegators are general participants who stake their ZBU tokens within the platform to gain influence and participate in the ecosystem's governance.
- Process: By staking ZBU tokens, Delegators receive VeZBU tokens, which provide them with voting rights and a voice in protocol decisions.
- Rewards: Delegators earn daily rewards based on their VeZBU stake, as well as the transaction activities facilitated by the Deployers they support.
2. Deployers
- Role: Deployers are infrastructure providers essential for managing the protocol's on-chain settlement processes.
- Eligibility: Becoming a Deployer requires a substantial ZBU stake, demonstrating commitment to the protocol's integrity.
- Function: Deployers use VeZBU tokens to deploy and manage settlement smart contracts. These contracts, secured by VeZBU, enable invoice settlements up to the value of the held VeZBU.
- Rewards: Deployers receive a 0.60% fee for each transaction they facilitate, incentivizing continued infrastructure support.
3. On-Demand Liquidity Providers (OLPs)
- Role: OLPs ensure liquidity within the platform, balancing assets to maintain smooth settlement cycles.
- Function: OLPs contribute to the liquidity pools, typically maintaining a 20-80 ratio to optimize liquidity availability.
- Rewards: OLPs earn a 0.40% reward per settlement cycle utilizing their liquidity, which encourages their ongoing participation and resource allocation.
Core Components of the ZBU Protocol
Vault Mechanism
The Vault is a critical component in the ZBU Protocol's staking infrastructure, enabling participants to lock their ZBU tokens for various durations (up to 720 days). This lock-in period influences both the issuance of VeZBU tokens and the participant's potential impact within the ecosystem.
- Token Issuance: Participants receive VeZBU tokens in proportion to the amount and lock-in duration of their staked ZBU. The longer the staking period, the higher the number of VeZBU, enhancing the staker's influence and reward potential.
- Usage: VeZBU tokens are essential for staking-related activities, protocol governance, and transaction validation, granting stakers a tangible impact within the ecosystem.
Liquidity Pool Structure
The ZBU Protocol's liquidity pool is structured around a ZBUand stablecoin pairing, optimized to maintain a balanced liquidity ratio that meets platform demands.
- Participation: Liquidity providers contribute ZBU and stablecoin in 20:80 ratio to the pool and receive LP tokens, representing their share of the pool’s assets.
- Incentives: LP tokens can be locked for periods of 6, 12, or 24 months, with rewards issued based on the liquidity utilized in settlement cycles. This structure encourages stability within the liquidity pool, supporting the protocol’s decentralized settlement framework.
Why Staking in ZBU Protocol?
The ZBU Protocol’s staking model is a crucial mechanism—it represents a comprehensive framework for ecosystem participation. By staking ZBU tokens, participants contribute to the stability, security, and governance of the platform. Delegators, Deployers, and OLPs collectively build a collaborative environment where each participant’s stake reinforces the ecosystem’s liquidity and transactional efficiency.
Stay tuned for our subsequent posts, where we’ll dive deeper into the Protocol Staking and uncover more details on VeZBU token utility, On-chain Clearing House, Nodes, and more.
Zeebu is committed to building a decentralized, resilient, and community-powered payment infrastructure—and staking is the key to bringing this vision to life.