How Zino Works

This section provides an in-depth overview of how Zino’s vault mechanics operate, how capital is deployed, and the strategy execution process. Vault Mechanics

Vault Mechanics

Each Zino vault is a strategy manager that pools assets such as ETH, USDC, and USDT, then distributes them across multiple yield-generating protocols. The allocation is determined by a set of automated strategies designed to balance risk and return. These strategies are continuously optimized based on market conditions and liquidity incentives.

For example, a single ETH vault may allocate liquidity in the following manner:

• 30% deployed to Uniswap V3 in a concentrated liquidity position to earn trading fees.

• 30% deployed to SushiSwap for similar concentrated liquidity yield.

• 20% lent on AAVE to generate lending interest.

• 20% allocated to GMX’s GLP pool for additional yield exposure.

This diversified approach mitigates risk while ensuring competitive returns.

Capital Deployment

When a user deposits assets into a Zino vault, the funds are automatically routed to a basket of predefined yield strategies. This process consists of several steps:

1. Deposit Allocation: The smart contract determines the optimal allocation of assets across integrated protocols based on predefined strategy parameters.

2. Liquidity Deployment: Assets are deployed into the respective DeFi protocols, where they start generating yield.

3. Auto-Rebalancing: The vault continuously monitors liquidity conditions and market yields, automatically reallocating funds when necessary to optimize returns.

4. Yield Harvesting: Profits generated from trading fees, lending interest, and protocol incentives are automatically harvested.

5. Auto-Compounding (if enabled): Earned rewards can be reinvested back into the vault to compound returns over time.

Strategy Execution

Zino employs a dynamic strategy execution framework that allows for real-time adjustments based on market conditions. These strategies are:

• Liquidity Provisioning: Deploying assets into AMMs like Uniswap and SushiSwap to earn trading fees.

• Lending & Borrowing: Supplying assets to lending platforms like AAVE to generate interest.

• Yield Farming: Participating in liquidity mining programs and protocol incentives.

• Risk Mitigation: Adjusting allocations to reduce exposure to impermanent loss, high volatility, or declining yield opportunities.

Each strategy is designed to maximize capital efficiency while maintaining risk-adjusted returns for users.

Withdrawals and Fees

Users can withdraw their funds from Zino vaults at any time, subject to a 5-minute lock period to ensure system stability. A 0.5% withdrawal fee is applied to discourage frequent withdrawals and maintain optimal capital efficiency within the vault.

By leveraging automated vault mechanics, dynamic capital deployment, and adaptive strategy execution, Zino Finance offers a streamlined solution for users seeking to earn sustainable yield without the complexity of manual yield farming. The multichain approach ensures that users can access the best opportunities across various networks, all within a single, seamless platform.