How it works?

Ethereum version. Base concept
Zunami Protocol Ethereum version

Basic Concept of Yield Aggregator

Zunami omni pool enables users to send stablecoins (DAI, USDC, and USDT) as either a direct or optimized deposit and receive ZLP (Zunami LP tokens) in proportion to all funds invested and earned by the protocol. Then, Zunami puts the stablecoins into a set of our strategies (usually 2-3 strategies in operation), which in turn puts them as LP into Curve pools, receives Curve LP, and then stakes them in Convex or StakeDAO reward contracts (Gauges). A direct deposit or withdrawal is executed instantly in the withdrawal strategy but requires the user to pay a lot of gas. On the other hand, a optimised withdrawal or deposit allows saving on gas costs by delegating the protocol to perform an aggregated deposit or withdrawal once a day through the operator. The protocol operator periodically call the auto-compound method for Zunami, which collects earned rewards from strategy contracts across all strategies and sends them to the Reward Manager contract. A portion of the rewards is sold, and the profits are reinvested into Curve pools and corresponding reward contracts, thereby increasing the value of our ZLP token and giving users full access to the compound interest. Meanwhile, the second part of the rewards, including performance fees and rewards received for UZD stored in the Curve pool, is sent to the treasury. To achieve decentralized governance, Zunami DAO is responsible for making all major decisions, including adding new strategies, rebalancing funds, and setting management fees.