Infinity Pool - ZEAL Staking

ZEAL Infinity Pool

Single-Sided Staking

Within our ecosystem, the Infinity Pool allows for single-sided staking of the ZEAL token. When you deposit ZEAL into the pool, you receive a receipt token known as xZEAL. The conversion rate between ZEAL and xZEAL was initialized at 1:1 and increases over time. This growth is enabled by automatic compounding in the Infinity Pool, fueled by ZEAL buybacks (Protocol Revenue Share) and ZEAL emission allocations.

Yield Mechanism

Yield in the Infinity Pool is derived from two distinct sources:

Protocol Revenue: part of the protocol revenue will go towards ZEAL bybacks and will be distributed to the infinity pool.

Farm Emissions: 18% of the ZEAL total supply will be rewarded as emissions in the infinity pool

Worked Example

Consider this hypothetical scenario:

Step 1: User A becomes the first participant to stake ZEAL in the Infinity Pool. They deposit 10 ZEAL and receive 10 xZEAL in return, maintaining the initial 1:1 ratio.

Step 2: An additional 10 ZEAL—sourced from protocol revenue, and farm emissions—is added to the Infinity Pool. This brings the total ZEAL in the contract to 20. With 10 xZEAL in circulation, the new ratio becomes 1 xZEAL to 2 ZEAL. At this point, User A can redeem their 10 xZEAL for 20 ZEAL according to the updated ratio.

Step 3: Assuming User A keeps their xZEAL, User B enters and deposits 10 ZEAL into the Infinity Pool. Due to the 1:2 ratio, User B receives 5 xZEAL in return. The pool now contains 30 ZEAL and 15 xZEAL, maintaining the existing ratio.

Step 4: The ratio between ZEAL and xZEAL continues to grow as additional ZEAL rewards flow into the Infinity Pool. These rewards are distributed proportionally among all xZEAL holders, resulting in each xZEAL token gaining increased value in terms of ZEAL.