Zekret Points

Understanding Zekret Points Accumulation on Zekret's Blockchain

Zekret Points (ZP) represent the reward mechanism within the Zekret ecosystem, calculated and distributed based on users’ contributions to the liquidity pools. Here's a breakdown of how ZP accrues:

User's Pool Allocation: The system evaluates the total assets a user has staked in a specific pool, including any amounts received through boosts. It then calculates the user’s share as a percentage of the total liquidity in the pool.

Pool's ZP Per User's Allocation: ZP rewards are derived from a collective pool that grows over time. Each participant’s share of this pool depends on their liquidity contribution relative to others. For instance, if the pool is set to distribute 100 ZP and a user has contributed 50% of the total liquidity, they would accrue 50 ZP. Adjustments are made dynamically as participants join or exit, ensuring fair and proportional distribution.

Accrued User Rewards: A user’s rewards are determined by multiplying their proportion of the pool's liquidity by the accumulated ZP per share. This includes considering any enhanced contributions due to boosts. The result reflects the total ZP that the user is entitled to claim based on their ongoing participation.

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Example of ZP Calculation: Suppose a user has contributed 100 units of Token x to a pool, and the pool has an established rate of 10 ZP per token x unit. The calculation for the user’s ZP would be:

Total ZP=(100 token y ×10 ZP/Token x)=1000 ZP

This example indicates that the user would accumulate 1000 ZP, highlighting the direct correlation between the staked amount and the rewards earned. This mechanism incentivizes sustained and significant participation in the liquidity pools, enhancing the overall stability and utility of the Zekret ecosystem.