zAssets

zAssets are synthetic assets designed to track the price movements of real-world assets. They provide an opportunity for price exposure to real-world assets on-chain. zAssets are purely synthetic assets and are not perfectly synchronized with the price of the corresponding real-world assets, but are priced through an incentive design that rewards behavior that tracks the price of the real-world assets.

Minimum Collateral Ratio and Multiplier

The zAsset's CDP must maintain a collateral ratio above the minimum collateral ratio to avoid liquidation. The multiplier parameter is assigned to each asset type that can be used as collateral to open the CDP and is multiplied by the zAsset minimum collateral ratio created to determine the final minimum collateral ratio for a given position. However, at the time of the mainnet release, only USDC is available as collateral, and the multiplier parameter is set to 1. Assets with higher volatility, such as ZDXT and zAssets, will be added as collateral assets through governance with a multiplier parameter greater than 1 to account for their volatility.

Liquidating Discount Rate

The discount rate applied by the liquidators when redeeming on behalf of CDP holders; the liquidators receive the amount of zAsset used for liquidation multiplied by the liquidation discount rate in the collateral asset.

Price

Oracle feeder is a ZDX account that can modify the distribution of staking compensation between LP NFTs and sLPs based on price premium, whitelisted collateral, and the current price premium of the zAsset. Each zAsset has its own dedicated feeder and can be rearranged through governance.

The current registered price as reported by Oracle feeder (Oracle Price), is used to determine the collateral ratio for CDP and does not directly affect the price at which zAsset trades on DEX. Prices are only valid for a certain seconds. If no new prices are published after the data expires, actions related to CDPs, such as CDP creation and redemption, will be restricted until the price feed is resumed. The market time used to track zAsset prices is based on the market to which each zAsset relates. This does not affect trading on the Dex, which is available 24 hours a day.