When we created the Zharta Token Rewards, we knew that we didn’t merely want to rely on the token as an end goal, but to make the process of earning points as engaging as possible by itself.

That’s why we decided to not only gamify the experience but, to keep things fresh and match the ever-evolving nature of our protocols, divide it into Chapters, each with new mechanics, rules, and strategies.

Chapter 3 focuses on our Lending protocol, rewarding lending and borrowing activity. In short, deposits and loans generate points proportional to their value daily.

And because points will eventually convert to tokens, this is a very special period in which your loan or deposit interest rates will be much more favorable, based on your FDV projections.

Below you can read more about Chapter 3’s mechanics including the bonuses and boosts available in this chapter.

Net APR vs. Gross APR

Chapter 3 centers around our Lending protocol, where points are allocated based on borrowing and lending activities. Deposits and loans accrue points daily; therefore, the greater the deposit or loan amount, the higher the points generated.

When the Token Generation Event (TGE) occurs, Zharta points accrued by users will be converted into tokens. Based on your projection for the Fully Diluted Value (FDV), you can estimate the earnings you'll receive if you proceed with the transaction. For borrowers, these earnings can help offset interest repayment costs (net APR), while for lenders, they can enhance their return on deposits (net APY).

We've developed a straightforward simulation tool: whether you're applying for a loan or considering a deposit, you can easily experiment with different FDV projections to understand how they will impact your rate.

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Pool Boosts

Pool Boosts are a way for us to incentivize balanced Utilization Rates for each of our pools and an opportunity for you to make the most out of your investments or loans. 

Each Public Pool will have either a Lending or Borrowing Pool Boost active at all times, so you’ll always have a way to take advantage of this mechanic! 

If, for example, the ETH pool's utilization rate is high, it might offer a 10x Lending Pool Boost. If its utilization rate becomes too low after some time, it may switch to providing a 10x Borrowing Pool Boost instead.

Deposit Bonuses

Each time you make a new deposit, you'll instantly receive a reward equal to the base (unboosted) points it would typically generate over 7 days. 

Example: If the ETH Pool currently had a 2x Lending Pool Boost and you deposited 100 USD worth of ETH into the ETH Pool, you'd instantly receive 700 points. Thanks to the Pool Boost, the deposit would then generate 200 points per day.

Loyalty Boost

As the name implies, to earn the Loyalty Boost you must maintain continuous activity in the protocol by keeping your deposits in their pools (or adding to them) or having at least one active loan. 

As long as you do so, your starting 1x multiplier will increase by 0.016 daily, up to a maximum of 2.5x. 

We’re here!

Don’t forget to talk to us if you have any questions or feedback! Start a conversation on our Discord server or slide into our DMs on our Twitter account. We’d love to hear from you! Your input is one of the main factors that has allowed us to improve our protocols continuously – and what will help us make the next chapters unputdownable.