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Genesis Vaults

To launch new markets efficiently and fairly, Zhenglong uses Genesis Vaults — time-limited vaults that bootstrap liquidity, collateral backing, and community participation from day one.

Genesis Vaults are the starting point for every new synthetic market on Zhenglong.

How Genesis Vaults Work​

1. Users Deposit Collateral​

  • Participants deposit approved collateral (e.g., wstETH, ETH, USDC) into the Genesis Vault during the offering period
  • The deposited collateral will form the initial backing of the new synthetic market
  • Each Genesis Vault has a defined start and end date for participation

2. Receive New Tokens at Launch​

At the end of the Genesis Vault period, participants receive:

  • Pegged Tokens (zheTokens): Synthetic assets pegged to the selected price feed (e.g., zheUSD)
  • Leverage Tokens (steamedTokens): Leveraged exposure tokens representing the residual collateral margin

The combined net asset value (NAV) of the issued tokens matches the value of the original collateral — meaning Genesis participants retain their value, but now split across two new tokens with different risk-return profiles.

3. Earn Additional Rewards​

Genesis Vault participants are also rewarded with STEAM tokens to incentivize early support. This ensures that early adopters are well-compensated for helping bootstrap the protocol.

Why Genesis Vaults Are Important​

Instant Market Liquidity​

Genesis participants provide immediate collateral and token float for new markets, ensuring they are liquid and usable from launch.

Balanced System Collateralization​

The Genesis Vault design ensures that both the stable (pegged) side and the leveraged (steamed) side of the market are populated in healthy proportions.

Low-Risk Entry​

Participants in the Genesis Vault take minimal market risk:

  • The total NAV of their pegged and leverage tokens equals their deposited collateral at launch
  • They can choose to hold, trade, or stake their new tokens based on their individual risk appetite

Community Ownership​

Genesis Vaults enable a fair and decentralized distribution of new synthetic assets — without reliance on centralized market makers or whales.

Example: wstETH Genesis Vault​

Suppose Zhenglong launches a market for wstETH collateralized against USD.

During the Genesis period:

  • Users deposit wstETH into the Genesis Vault
  • After the Genesis closes, users receive:
    • zheUSD: A synthetic stablecoin pegged to the US Dollar
    • steamedETHD: A leveraged long token providing amplified exposure to ETH vs USD

Participants can:

  • Hold zheUSD for stability and earn yield via Stability Pools
  • Trade or hold steamedETH to speculate on ETH price appreciation
  • Or sell or provide liquidity with either asset in DeFi

In addition, they earn STEAM rewards for participating early.

Participating in Genesis Vaults​

How to Join a Genesis Vault​

  1. Monitor Announcements

    • Follow Zhenglong's official channels for new Genesis Vault launches
    • Review the proposed market details and collateral requirements

  2. Prepare Approved Collateral

    • Ensure you have the required collateral token
    • Approve the Genesis Vault contract to use your tokens

  3. Deposit During the Window

    • Navigate to the Genesis Vault interface
    • Connect your wallet
    • Enter the amount of collateral you wish to deposit
    • Confirm the transaction

  4. Wait for Distribution

    • Genesis Vaults have a fixed timeframe
    • At the conclusion, tokens are distributed automatically
    • Your dashboard will show your allocation of zheTokens and steamedTokens

  5. Claim STEAM Rewards

    • Additional STEAM rewards vest over time
    • Claim them through the rewards interface

Benefits Summary​

✅ Kickstarts New Markets: Provides immediate collateral, liquidity, and token distribution

✅ Fair Participation: Community-driven and proportional — no favoritism

✅ Choice and Flexibility: Users can customize their exposure post-genesis

✅ Low-Risk Structure: NAV of tokens equals deposited value at launch

✅ Boosted Incentives: STEAM rewards amplify early adopter benefits

Genesis Vaults are the launchpad for every new synthetic market in Zhenglong — turning early participation into a valuable opportunity while laying strong foundations for liquidity, peg health, and community ownership.