It’s time to board the new DeFi ship and ride to the Moon with us!
Dear Sharks, frens, apes, degens and pillars of the DeFi community! Celebration is in order as the Zunami ship is now set to launch and hit the Moon!
We are currently trailblazing DeFi innovation in the stablecoin farming sector. Low-interest rates make the switch from traditional savings accounts to decentralized cryptocurrency protocols more compelling than ever before. There’s a massive gap between trust in the old-school system and the profit-hungry, enthusiasm-fueled degen nation of the alternative finance underworld that generates magic internet money by leveraging the latest blockchain technologies. And we’re going to bridge that gap.
A leap into the new era of finance
Zunami Protocol is the DAO that works with stablecoins and solves the main issues of current yield-farming protocols by streamlining interaction with DeFi, making it easier and cheaper while increasing profitability by differentiating and rebalancing users’ funds.
Zunami is advancing on the DeFi market with one of the first automated asset managers in the world. Our in-house solution, which only works with stablecoins, was created with the primary objective to create a safe and profitable alternative to traditional banking deposits.
Despite the overall complexity of the internal design, it works quite simply. Zunami Protocol solves the main issues of current yield-farming protocols by streamlining interaction with DeFi. Our proprietary solution uses less gas than through Curve-Convex, making it 4 times cheaper to interact through Zunami Protocol than directly. Our application provides the best return on the market by automatically selling rewards and reinvesting the generated income. The DAO identifies the most profitable strategies, allowing holders to earn higher interest rates on their Tether (USDT), Dai (DAI) or USD Coin (USDC) stablecoins.
From Problems to Solutions
Zunami Protocol addresses key issues present in the DeFi sector:
Overcomplicated User Experience (Problem)
- Modern DeFi interfaces are made for professionals and are not convenient for beginners;
- An overwhelming number of functioning pools to choose from;
- The need to interact with multiple applications in a row to perform operations.
Smooth & easy UI (Solution)
- The single pool system and new UI make interaction with DeFi apps smooth & easy by performing all the actions in one step!
Self-managing of digital assets (Problem)
- Frequent changes in pools’ interest rates;
- Time-consuming interaction with multiple protocols;
- Most profitable pools/protocols never provide the same lucrative rates.
Automated Revenue Aggregator (Solution)
- The revenue aggregator independently differentiates and rebalances funds among the best stablecoin pools based on the results of the weekly DAO voting. Delegate, automate, enjoy.
Expensive Interaction with DeFi (Problem)
- Too pricey & inconvenient to sell rewards on your own;
- Costly deposits and withdrawals.
Cost optimization (Solution)
- Earned rewards are automatically sold and then reinvested so that users can enjoy the full power of compound interest;
- Transaction Streamlining Mechanism (TSM) significantly reduces deposit and withdrawal costs and makes yield-farming accessible not only for crypto whales.
Governance crisis (Problem)
- The development often runs against the grain of users and the community;
- Unfair distribution of governance tokens;
- Lack of motivation among holders of governance tokens.
- Transparent solution of all key issues through voting by ZUN holders. The ZUN token will be credited through the innovative Lockdrop system to ensure the proper functioning of the platform in the long term!
Our team researched historical data analytics, and we noticed massive volatility in Convex stablecoin pool yield rates.
The fact is that a particular popular pool may have the best APR today or tomorrow, but after a month or 2, it is already among the outsiders in terms of profitability. We believe that this is true not only for Convex pools but also for the entire yield-farming market. Active participation in asset management is a must to get the best income from stablecoins — rebalancing and diversifying funds into best-performing pools.
Zunami Protocol proudly stands out as a high-end DeFi platform offering users a bunch of new features:
- Rebalancing and Diversification. Using the Zunami Protocol, you get the best returns on the market while your funds are diversified across trusted pools and DApps. Decisions on the choice of strategy and assets rebalancing are made by weekly DAO voting.
- Cost optimization. Zunami Protocol is an electric vehicle in the oil and gas era. Our technical solution provides a substantial decrease in deposit costs compared to the industry-leading platforms. This essentially means that your crypto rides will become much cheaper. Get more for less!
- Auto-compound. Rewards accrued by the user in DeFi protocols are automatically sold and the profits are reinvested. Zunami Protocol App boosts users’ income by allowing them to enjoy the compound interest.
Ethereum version. Base concept.
1. Zunami Protocol uses the Transaction Streamlining Mechanism (TSM) which accumulates users’ funds in one batch and distributes it according to our strategies, reducing the commissions for individual transactions.
2. The platform uses a strategy that has been approved by the DAO. Then, the user’s funds are sent to Curve, and LP tokens are staked on Convex/Yearn or Anchor strategy.
3. Rewards accrued by the user in DeFi protocols are automatically sold and the profits are reinvested. Zunami Protocol App boosts users’ income by allowing them to enjoy compound interest.
4. Key issues such as the choice/adding of new strategies, rebalancing of funds and the amount of management fee will be decided by Zunami DAO.
ZUN Token & Governance
ZUN will become the future governance and utility token for the Zunami Protocol. The ZUN holders will be able to vote and determine the development direction of the protocol. Key issues such as the choice/adding of new strategies, rebalancing of funds and the amount of management fee will be decided by Zunami DAO. ZUN is also a utility token, as ZUN stakers, in addition to being able to vote, receive a percentage of the protocol’s revenue.
We strive for transparency and decentralization, believing that only by relying on the opinions and needs of our users, we can build the proper infrastructure for the future of finance. Initially, voting will take place on Snapshot.org platform and all users who have staked their ZUN tokens will be able to take part. In the future, we plan to launch on-chain voting for protocol management.
We see significant shortcomings in modern token distribution models. The Retroactive Airdrop is the event that distributes tokens to investors, supporters, users, and adopters who went with the projects in the early days does not guarantee that users will use the protocol in the future.
Meanwhile, users often abuse most of the Liquidity Mining programs for their own benefits, regardless of the interests of the project at large. We see the Lockdrop mechanism as the best existing token distribution system.
To receive ZUN tokens, users must lock LP tokens (received for depositing stablecoins) for a period of 1 month to 4 years. The longer the lockup period and the number of LP tokens staked, the more ZUN tokens a user will receive.
The Lockdrop model, as opposed to Retrodrop and Liquidity Mining, rewards users for their future contributions rather than past merits. Thus, ZUN tokens are received only by those users who have skin in the game and are motivated to participate in the development of the protocol, not having the goal of simply quickly selling the token on the DEX.
ZUN staking: veModel
Our team decided to use veModel as this staking model has shown decent performance in protocols such as Curve, Convex and Frax. The main advantages are:
- Fair distribution of votes among DAO members. Users who have locked their assets for a longer period and have larger amounts receive more votes;
- ZUN stakers are full-fledged hosts of the Zunami and receive a fee from the protocol’s income;
- Reduction of tokens in free circulation and a positive impact on the price;
- Users will be able to stake ZUN tokens for a period of 1 month to 4 years.
To reduce the number of ZUN tokens in circulation, we encourage staking by providing additional rewards in the form of ZUN tokens. The longer the lockup period, the better bonuses a user will get:
- More ZUN tokens as rewards;
- More veZUN tokens for voting;
- More % of the protocol’s profit for stakers.
Moreover, along with the introduction & launch of new products such as self-repaying loans and ZUN fixed-rate deposits, the stakers will also get additional profit.
From Audit-tested to battle-tested
Zunami Protocol strives to become a trusted ecosystem driven by users of the protocol to eliminate fraud and corruption often present in DeFi. One of the steps to prove one’s project liveability is setting the smart contracts through a reliable service provider. Zunami Protocol team is happy to confirm that the initial smart-contract design has undergone the security check by Ackee. We are going to perform even more audits in the future to ensure the sustainability of our complex model and the proper functioning of its components!
A look into future
Zunami team is now starting the voyage into the crypto seas with a clear plan to disrupt the current DeFi landscape. Looking out over the year, our team has foreshadowed additions such as additional smart-contract audits, additional blockchain rails support, self-repaying loans, and deposits with a fixed rate.
Finally, the platform will be launched through the innovative Lockdrop system. This new model, as opposed to Retrodrop and Liquidity Mining, rewards users for their future contributions rather than past merits. Thus, ZUN tokens are received only by those users who have skin in the game and are motivated to participate in the development of the protocol, not having the goal of simply quickly selling the token on the DEX.
Check out the Zunami Protocol Roadmap to see what we’re up to in detail! See you in the seas of DeFi!
For those interested in sharing their contributions to the team’s vision and writing the Zunami story, a Global Ambassador Program (now Phase 2) is also available for users to participate in.
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