How to do

Framework for Onboarding New LSDs

Zest Finance follows a similar approach with its protocol composition, leveraging multiple liquid staked derivatives (LSDs) combined into a single Omnichain ERC20 token. Each LSD within the Zest Finance ecosystem is assigned a target weight and a maximum weight, dictating its role and influence within the protocol. When a new LSD is integrated into Zest Finance, it benefits from guaranteed total value locked (TVL) up to its target weight, as well as concentrated liquidity up to its maximum weight. This allows the new asset to tap into the shared liquidity pool of all the assets within the protocol.

The governance process plays a crucial role in determining the composition of the Zest Finance. Through community-driven governance, decisions are made regarding the inclusion of new LSDs, their target and maximum weights, and other relevant parameters. This ensures that the protocol remains dynamic and responsive to the evolving needs and preferences of the community.

Similar to decentralized exchanges (DEXs), Zest Finance implements an initial liquidity and governance bootstrapping period when onboarding a new LSD. During this period, co-marketing efforts and co-incentives are employed to promote the new asset's integration into the ecosystem. This approach encourages participation, liquidity provision, and engagement from the community.

Zest also emphasizes long-term commitment and engagement with its governance process. Users with higher vdZST balances receive increased rewards, incentivizing them to actively participate and contribute to the governance of the protocol. This mechanism fosters a sense of ownership and encourages users to lock their tokens for longer durations, promoting stability and continuity within the governance ecosystem.

Over the next three months, Zest has plans to onboard several new LSD protocols. This involves conducting thorough technical due diligence, integrating the new protocols into the ecosystem, and subjecting them to governance votes for approval. As new partner protocols are approved and join the Zest Finance ecosystem, their respective governance tokens are added to the rewards pool for the "governance mining" farm. This further enriches the ecosystem and creates synergies among the participating projects, fostering collaboration and mutual benefits.

Overall, Zest's approach to protocol composition and governance aligns with the principles of community-driven decision-making, incentivization, and long-term commitment, ensuring a vibrant and dynamic ecosystem for its users.