What is Zerogoki?
Zerogoki is the pilot experimental protocol of Duet Protocol. In Zerogoki, the fast minting module of Duet protocol is selected i.e., the synthetic assets are only generated by burning the native assets REI, and the volatile leveraged tokens are also employed as the listing assets to increase the test pressure of the system, at the same time choosing the relatively slow and expensive Ethereum mainnet to verify that Duet could run smoothly in the future in a relatively harsh environment.
How to start Zerogoki?
- Visit the Zerogoki official website at https://zerogoki.org/
- From the main operation panel (Dashboard), you will be able to perform various interactions with Zerogoki. You can view Zerogoki’s current token prices, TVL, zAssets total market value, liquidity and trading volume and historical prices.
3. The first step for using Zerogoki is to connect your wallet to the app. Click on the upper right corner to connect to the wallet (CONNECT WALLET)
4. Wallet installation tutorial:
Choose the wallet you usually use, and follow the prompts to connect to the wallet. If you have never used a crypto wallet, Metamask may be a good idea to choose.
How to buy Zerogoki tokens?
REI is Zerogoki’s core asset and value vehicle, which is used as a fuel to generate synthetic leveraged assets. For every $1 of synthetic assets minted, the equivalent value of REI will be burned.
If you are a new user, you need to purchase the REI to mint Synthetic Asset, or purchase the Synthetic Asset directly from the Exchange page.
- Import the Zerogoki tokens in the wallet
- REI: 0x011864d37035439e078d64630777ec518138af05
- zUSD: 0x76417e660df3e5c90c0361674c192da152a806e4
- REI-USDT LP: 0xdfb8824b094f56b9216a015ff77bdb056923aaf6
- zUSD-USDT LP: 0x1197774e49f98b24c7afa88f0eb6fbd0e0786a0a
Take adding REI to MetaMask as an example: scroll down to the bottom of the token list, click Add Token, select Custom Token, copy and paste the token contract address, and click Next to automatically add it.
2. Buy REI and zUSD
For REI, users can both choose to redeem it in UniswapV2, or directly purchase at Uniswap embedded in Zerogoki’s Exchange interface.
Take the operation in Zerogoki as an example, click the Exchange button in the left menu bar to enter the interface, Select a Token to add, paste the REI contract address, and select Import.
After the import is successful, enter the amount you want to purchase and click Exchange to complete the purchase. The same as for zUSD purchases.
3. Use REI to mint synthetic assets
In addition to the above-mentioned direct purchase on DEX to obtain zUSD, zUSD can also be minted by depositing REI in the Minting module of Zerogoki.
Let’s take the use of REI to mint zUSD in the Mint/Redeem module as an example.
First click on the Mint/Redeem module in the right menu bar, and select the tokens of both parties. The left side is the REI that needs to be burned, and the right side is the zUSD that you want to mint. After determining the amount of REI, the right input box will estimate the amount of minted zUSD based on the current ratio. Finally, click the MINT button above to confirm the minting request.
Special note: The system will set a daily limit for the minting of synthetic assets. When the amount of minting is closer to the limit, the system will charge a certain fee to the minting user, i.e, the minting tax. The minting tax level will increase based on the cumulative amount of destruction on the day of Zasset’s REI (Start counting from 0 at 8am every day). When the user finds that the tax is higher, they can wait for some time before minting.
Use REI to mint other types of synthetic assets in the same way.
You can also choose zAssets to redeem REI.
View personal portfolio
On the My Portfolio interface, you can view the total value of your assets, the amount of positions held by different ZAssets, and the amount of mortgage.
Staking in the liquidity pool
The system will incentivize REI/USDT, zUSD/USDT, zUSD/zAsset liquidity providers and users who hold REI to participate in the governance lock-up.
The liquidity provider will receive 50% of the initial total amount of REI allocation, of which REI/USDT and zUSD/USD liquidity pools will receive no less than 25% of this part of the allocation. The rest is allocated by leveraged tokens and zUSD’s liquidity pool.
Take the REI/USDT trading pair as an example:
1. Enter the Farming module in the left menu bar, click the green Deposit button to expand the drop-down operation box
2.Click on the LP trading pair Logo to enter Uniswap’s add liquidity page, please do switch the liquidity pool to Uni V2, Zerogoki currently does not support V3 LP.
3. Select the amount you want to add, click approve, then click confirm supply after approval, the liquidity pool share you provided will be displayed on the page after the transaction is completed.
4. Back to the Zerogoki page, enter the amount of REI/USDT you want to stake in the box on the left, click approve, and confirm to complete the stake.
REI single currency staking
Stake REI to earn REI:
Enter the amount of REI you want to stake in the box on the left, and click approve to complete the subsequent stake.
Since the Zerogoki system uses REI to mint zUSD at a price of 1 U.S. dollar by default, when the zUSD price is decoupled, we can use some simple operations to achieve arbitrage:
When the current zUSD is at a positive premium， we can choose to buy REI, and then trade the asset price difference by minting it into zUSD in Zerogoki.
And when the current zUSD is at a negative discount, you can buy zUSD and re-mint it into REI to earn the spread.
For example, the current REI price in Uniswap is 1 USDT, zUSD in Uniswap is at a positive premium of 1.1USDT. Because we keep the price of REI and zUSD in Zerogoki unchanged at 1 U.S. dollar, then REI can mint 1 zUSD in Zerogoki, passing the difference of 0.1 U.S. dollars for each REI currency. As long as the price of zUSD does not have a digital return, risk-free arbitrage will continue, and zUSD can be fixed at 1 U.S. dollar because of its built-in machinery.
It is important to note that the above process is based on the assumption that REI prices are stable.If the price changes, the system will mint according to the time-weighted average REI price in the past hour.
In the forward mining process, the lowest REI price in the past hour will be taken, and in the redeem process, the highest REI price in the past hour will be taken.This is to incentivize people to arbitrage through the SWAP pool rather than the system contracts, so be aware of the price at that time.
Note: This project is experimental. Use at your own risk.
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