Yield farming

You like passive income and you know it!
As you can see in Distribution, 30% of $ZEEM are allocated for community contributors, that is 30M. That means the protocol rewards those who contribute by locking liquidity to protect or help to grow Zeemcoin.


By keeping tokens in a staking vault you are locking liquid tokens to protect the protocol from panic selling and speculation, then you get rewarded in $ZEEM for that. Deposits can be withdrawn immediately whenever you want, although for short term deposits substantial burning fees are applied. This mechanism is expected to prevent speculators to participate.


By providing liquidity to the pool ($ZEEM / $WBTC), the provider earns fees that come from the transactions that are generated from the “purchase and sale” activity in the pool. Those are around 0.17% of the the total fees generated. Additionally, providers can get boosted by staking their LP tokens (received when providing liquidity) in the farming vault. Liquidity providers are exposed to BTC, so in a potential growth in price of $ZEEM against BTC, they accumulate BTC, and for those who trust in BTC, being attached in price to it is a big plus.


From the 30% allocated to yield farming rewards, initially 75% go to Farming (staking LP tokens) and 25% go to Staking (staking $ZEEM). Rewards system is designed to promote the growth of liquidity in the pool at the early stages of the protocol by rewarding liquidity providers with 3 out of 4 parts of the distribution. Also stakers of $ZEEM will get rewarded, as they contribute to lock liquidity and protect the protocol.


Depending on the amount of $ZEEM locked in Staking & Farming out of the total supply of $ZEEM, the average Annual Percentage Rate (APR) can be estimated as it is in the following chart representing the estimated average APR per month depending on the percentage of the supply locked in the protocol. As you can notice, the incentives are higher when the protocols needs more liquidity at the beginning. As the distribution is constant per second, we can expect that the higher the supply and TVL are, the lower the yield returns will be for users.