User Guide
ZDX Finance has the following four uses
Long
Short
Liquidity Provision
Lock ZDXT
Long
You can profit by swapping a synthetic asset (zAsset) linked to a stock or stock index, such as zSPY, for a stable coin, and then swapping it back into the stable coin after zSPY has risen in value. This is called a long position.
Click on the Trade tab in the header and enter the amount of zSPY you wish to buy or the amount of DAI you wish to use.
After pressing the Swap button, the wallet will be activated and the transaction will be executed after confirming the gas fee etc. and pressing Confirm. When the green "Transaction Confirmed!" popup appears in the top right corner of the screen, your long position is complete.
Short
You can borrow zAsset as collateral to swap stable coins, and then buy back zAsset at a lower price after the zAsset price falls to repay the loan and make a profit. This is called a short position.
Open the Short page in the Earn tab of the header and press the Short button in the lower right corner.
Enter the amount of DAI to be pledged as collateral and select the collateral ratio. Note that setting the collateral ratio too low will increase the risk of liquidation. After setting the conditions, press the short button at the bottom of the screen to activate the wallet. The rest of the process is the same as for a long position.
If you hold a short position, ZDXT (Governance Token) rewards will accumulate over time and you can claim ZDXT from the Claimable Rewards box on the Short page.
Liquidity Provision
Pairs of zAsset/DAI and ZDXT/DAI can be used to provide liquidity to the DEX pool in order to earn swap fees and ZDXT rewards.
Visit the Add Liquidity page on the Earn tab of the header and press the New Position button.
Then select the token pair you wish to provide liquidity for and enter the amount. You also select the price range within which you want to provide liquidity. The narrower the range, the more money you can make, but the higher the risk of impermanent loss.
Once you have entered the various conditions, click on the Add Liquidity button to proceed to the wallet screen.
Once the liquidity provision is complete, an LP token will be issued. To confirm this, you have to go to the Farm page from the Earn tab. Click on the Stake button for the pool you have contributed liquidity to, and you will be able to stake LP tokens.
After staking LP tokens, you will be eligible to receive the ZDXT reward.
If you wish to earn a swap fee and ZDXT reward by providing liquidity without the risk of zAsset price fluctuations, you can also provide liquidity by combining your borrowed zAsset with your own stablecoin holdings.
Select the Borrow tab from the header and click the Borrow button to the right of the zAsset you wish to borrow.
Specify the amount of DAI to be pledged as collateral and the Collateral Ratio and press the Open Position button to proceed to the Wallet screen.
Once a borrowing position is created, liquidity can be provided from the Add Liquidity screen mentioned above. In this position there is certainly no risk of price fluctuation of the zAsset itself. However, by providing liquidity you may incur an impermanent loss and you should be aware of the risk that the amount of zAsset you originally borrowed may decrease. Of course, the same risk exists when providing liquidity in the form of a zAsset or ZDXT obtained through a swap.
Borrowed positions can be managed from the Borrow screen. There are four options: Deposit, Borrow, Repay and Withdraw.
Pressing the Deposit button takes the user to a screen where additional collateral can be pledged. Increasing the DAI deposit amount here increases the collateral ratio of the debt position and reduces the risk of liquidation.
The Borrow button allows additional borrowing of zAsset. Note that this operation reduces the collateral ratio of the debt position and increases the liquidation risk.
If you want to pay back the borrowed zAsset, simply press the Repay button.
Pressing the Withdraw button will take you to a screen where you can withdraw the stable coins you have pledged. Again, it should be noted that withdrawing too many stable coins increases the risk of liquidation.
Lock ZDXT
Locking ZDXT, the governance token for ZDX Finance, provides ZDXT rewards and governance voting rights. The reward amount and governance vote size are proportional to the amount of ZDXT locked and the duration of the lock.
Click on the Vest tab in the header, select the amount of ZDXT to lock and the lock period, then click on the Approve button to proceed to the wallet screen. It is also possible to claim ZDXT rewards from the same Vest screen.
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