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Genesis Vaults

To launch new synthetic asset markets in a fair and balanced way, Zhenglong uses a powerful tool called a Genesis Vault. This is a one-time opportunity where early users help kickstart a market by depositing collateral - and in return, they receive both sides of that market: a zheTOKENS (stable) token and a steamedTOKEN (leveraged) token.

It's the protocol's way of setting the stage, fairly and transparently, for each new market.

How It Works​

Here's how a Genesis Vault rollout typically plays out:

  1. Deposit Phase: When Zhenglong announces a new market (say, for example, a gold-pegged zheTOKENS like zheXAU backed by ETH), a Genesis Vault opens for a short time. During this window, users deposit approved collateral (e.g., ETH or stETH).

  2. Token Distribution: Once the window closes, the protocol mints the very first batch of tokens for that market. Each user gets a proportional mix of:

    • The zheTOKENS (e.g., zheXAU), and
    • The steamedTOKEN (e.g., steamedETH-XAU).

    For example, if Alice deposits $1,000 in ETH, she might receive $500 in zheXAU and $500 in steamedETH-XAU - giving her exposure to both the stable and the leveraged side of the new market.

  3. Bonus STEAM Rewards: To thank users for helping launch the market, Zhenglong often distributes extra STEAM governance tokens based on how much you deposit. This ensures that early adopters also gain a long-term stake in the ecosystem's success. It is also possible to incentivize genesis vaults with other tokens, opening the door for other projects to launch their own markets aligned with their goals.

Why It Matters​

Genesis Vaults make sure every new market launches with:

  • A healthy supply of both stable and leveraged tokens, and
  • A strong liquidity base from day one.

This dual-token distribution means the system starts off balanced - with users on both sides of the equation, not just speculators or yield farmers.

A Real-World Example​

Imagine a wstETH/USD market:

  • Users deposit wstETH into the Genesis Vault.
  • They receive: zheUSD (a stablecoin pegged to the dollar), and steamedETH (a leveraged long ETH position).
  • zheUSD can be used in DeFi or placed into Stability Pools.
  • steamedETH can be traded or held by those seeking leverage.

From day one, this market has active users on both the stable and volatile sides, and it's fully backed by the wstETH deposited during genesis.

Note: Genesis Is a One-Time Event​

The dual-token distribution only happens during Genesis. Afterward, users can choose which token they want to mint - zheTOKENS or steamedTOKEN - based on their needs. There's no requirement to mint both in normal operations (we'll dive into that in the next section).