Zest Protocol is an aggregation of synthetic tokens allowing participants to speculate on the price of assets without actually owning the underlying asset.
Zest Protocol uses three distinct tokens to allow users to speculate on underlying assets whilst simultaneously receiving passive income：
- ZSP (Zest Synthetic Protocol Token)
ZPS is the Zest protocol utility token via which participants are rewarded with fee revenue generated by the protocol. - FTM (Fantom)
The token on the Fantom Opera network. - FTMz (Synthetic Fantom)
A synthetic version of the FTM token pegged 1:1 to the FTM price.
In order to mint FTMz token, a user must deposit FTM into Zest Protocol. This FTM then becomes the collateral for FTMz, and in return the protocol provides you with FTMz.
Using FTMz, users may speculate on the price action of FTM and take advantage of arbitrage opportunities. Additionally, they may earn APR by pairing FTM with FTMz and depositing LP tokens into Zest's farms.
Using the farms of the protocol, users do not suffer any significant impermanent loss, yet earn much higher APRs than current single staking opportunities for FTM.
The rewards from farming can be locked or staked, further compounding the APR they receive through using Zest Protocol.
