Vault

Looking ahead, Vault 2.0 will be launched leveraging Mitosis Programmable Liquidity, further enhancing flexibility and composability.

Overview

The Zygo Vault is a core component of the Zygo ecosystem, enabling users to participate by depositing USDC and receiving ZLP tokens in return.

ZLP Token

• When users deposit USDC into the Vault, they receive ZLP, a token representing their share of the Vault’s assets.

• ZLP follows the ERC-4626 standard, making it a Vault token that integrates seamlessly with DeFi protocols.

• Like other ERC-20 tokens, ZLP is transferable and can be used across DeFi applications.

• To maximize composability, ZLP is designed for integration into multiple protocols, expanding its potential use cases within the broader DeFi ecosystem.

How the Vault Works

• By depositing into the Vault, users essentially take the counterparty role to Zygo traders:

  • If traders incur losses, the Vault earns profits.

  • If traders generate profits, the Vault bears the losses.

Risks of Vault Deposits

1. Trading Risk

   • If Zygo traders collectively generate profits, the Vault incurs losses, and the Vault balance may decrease.

2. Smart Contract Risk

   • As with all DeFi protocols, vulnerabilities or exploits could compromise assets if the contract is flawed or attacked.

Important Considerations

• Vault APR is not guaranteed. It is a statistical measure based on past performance and fluctuates dynamically with trader PnL.

• Users should not treat APR as a fixed yield or rely on Vault deposits for guaranteed returns.