👽Element-Z Token Utility
ELZ is the protocol utility token (on BASE) that also rewards its holders with 100% of generated protocol fee revenue.
The ETH token is deposited into the protocol when a user mints XETH token, while the ELZ token which is used for minting is burned.
When the user redeems XETH tokens, the protocol pays back ETH tokens and mints the required amount of ELZ tokens.
The ratio of ETH and ELZ tokens used by the minting and redeeming function of the Basetasm Protocol is determined by the Collateral Ratio.
These mechanisms are described with examples in more details in the next pages of our documentation.
Each minting and redeeming of synthetic assets like XETH on Basetasm incurs a 0.50% minting and 0.50% fee redeeming, respectively.
These fees are distributed as ETH and ELZ dividends to users who lock their ELZ on the platform.
The capital required to mint XETH is only partially denominated in ETH.
The remaining portion is denominated in ELZ, which is required as collateral.
This requirement creates both a natural demand for ELZ, as well as captures value.
New Basetasm Synthetic Assets (Roadmap milestone) Equals more utility and liquidity for ELZ token holders because ELZ will always be a key ingredient in minting synthetic tokens.
DeFi Integrations (Roadmap milestone) Adoption and integration of Basetasm synthetic assets with other DeFi projects to develop and unlock new trading strategies (derivatives trading, leveraged trading/farming, other exotics)
Early Exit Penalty Revenue Besides ETH and ELZ revenue for users who stake their ELZ, stakers also earn 50% of the penalty fee from ELZ/ETH and stable pool farmers who claim their rewards early.
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