LP Finance is a synthetic asset issuance protocol that allows users to lock collateral and mint synthetic tokens. zSOL is a Solana-pegged synthetic asset which allows users to leverage liquid staking yields and short-selling.
Incentivizing liquidity providers is the most straightforward to enhance the peg-stability and scalability of zSOL. However, incentivizing via liquidity mining might cause future scalability issues as it might cause huge inflation on the governance token.