- Depositing or withdrawing ZSHARE (or claiming SUB rewards) via Regulation will apply a time lock on ZSHAREs for 6 epochs and it will time lock SUB rewards for 3 epochs.
- Regulation does not produce SUB rewards when below the price of 0.01 AVAX.
- Distribution of SUB during expansion (when SUB is trading above peg) includes 75% being sent to Regulation (ZSHARE) stakers, 15% goes to the Rewards Pool for the Freezer and 10% goes to the Treasury Investment Fund (TIF).
- Epoch expansion: Current expansion cap base on SUB supply, if there are bonds to be redeemed, 65% of the minted SUB goes to the treasury until it is sufficient to meet the bond redemption. If there is no debt it will follow max capped expansion rate.
Next Epoch indicates a countdown timer to the next seigniorage. (Each epoch lasts for 6 hours)
APR refers to the simple returns in USD value relative to the amount of ZSHARE staked (USD value). Note: APR fluctuates from time to time and is dependent on certain factors such as:
- Price of SUB
- Price of ZSHARE
- Amount of ZSHARE staked in the Boardroom (Locked Value)
Regulation will not mint any SUB tokens while TWAP < 1.01 (0.0101 AVAX).
Above peg, Regulation will produce SUB tokens from staked ZSHAREs. The expansion epochs start after a contraction period (period of time below peg) where there are still ZBONDs to be redeemed.
65% of the expansion while above peg is allocated to the treasury fund to prepare for ZBOND redemption. This amount is still reserved whether or not ZBOND holders are redeeming bonds or not.
Once the Regulation treasury is sufficiently full to meet all circulating bond redemption, expansion rates will resume to normal:
- 75% of SUB to ZSHARE Regulation stakers
- 15% of SUB to ABZERO holders via the Freezer Rewards Pool
- 10% of SUB to Treasury Investment Fund (TIF)
Stake your LP to earn ZSHARE tokens:
- SUB-USDC LP
- SUB-AVAX LP
- ZSHARE-SUB LP
- Single Stake SUBZERO
- Single Stake ABZERO
The reward rates on pools will be updated dynamically to match market interest and protocol requirements. Eg. when below peg, the single-stake SUB and ABZERO staking pools may receive an increased reward rate.
ZBONDs (bond tokens) are available for purchase when SUB falls below the 0.01 AVAX peg. If SUB's TWAP is between 1.00 and 1.01, neither ZBONDs nor SUB will be issued.
e.g. if SUB's TWAP < 1, exchange SUB for ZBOND in a 1:1 ratio.
ZBONDs are available for redemption when SUB goes above the 0.01 AVAX peg.
To encourage redemption of ZBOND for SUB when SUB > 0.011 AVAX and incentivize users to redeem at a higher price, ZBOND redemption will be more profitable with a higher SUB TWAP value, of which the ZBOND to SUBratio will be 1:R, where R can be calculated in the formula as shown below:
R = 1 + [( SUB(twapprice) − 1) ∗ coeff)]
The Freezer is a protocol feature that is unique to Subzero. Users can stake (or freeze) their SUB tokens and receive a liquid staked version, ABZERO. The contract maintains an index ratio (ABZERO to SUB) which is used in deposit and withdrawal calculations. On top of this, there is a tax of 3% on deposits and 17% on withdrawals. The tax limits are hardcoded to prevent manipulation and no wallets are exempt.
The formula used to determine the rate is:
R = [( SUB * Index) ∗ taxcoeff)]
The Index increases via taxes and through the profit generated in subsidiary projects. These profits are distributed to the protocol in the form of SUB buybacks and ABZERO rewards. 15% of the SUB tokens minted through regulation are immediately committed to The Freezer via the Rewards Pool.
The Rewards Pool ensures that The Freezer rewards are distributed predictably and fairly to all ABZERO holders. This prevents manipulation from sudden deposits which may occur due to sudden capital generation events.
While above peg for more than 4 epochs, the Rewards Pool will distribute 1% of the balance to holders per day (0.25% per epoch). While below peg, the Rewards Pool will distribute 0.25% of the total to holders per day (0.0625% per epoch).
The Freezer is designed to provide a provably fair profit distribution method that rewards long-term stakers (due to the tax it is not viable for short term trading) and provide an additional supply restriction mechanism to help restore the peg.