Answers to Your Questions about stZEN
Horizen and StakeHound recently partnered together to build a new DeFi bridge for ZEN. Through this partnership, a new ERC-20 token called StakeZEN,or stZEN will be issued. By using stZEN, ZEN holders will be able to participate in the Ethereum-based DeFi ecosystem AND earn Horizen node rewards at the same time!
Here are the answers to the most frequently asked questions we received from the community:
Q What’s the difference between ZEN and stZEN?ZEN is the native cryptocurrency of the Horizen blockchain. StakedZEN (stZEN) is an ERC20 token issued by StakeHound as a 1-to-1 representation of ZEN staked with StakeHound.
Q What are the benefits of stZEN?stZEN will allow you to participate in the Ethereum ecosystem while earning Horizen node rewards at the same time.
QWhat’s the easiest way to acquire stZEN?You will be able to buy stZEN on SushiSwap, a decentralized exchange. The stZEN Ethereum contract address will be published on https://blog.horizen.io/offboarding-stzen-announcement//. Meanwhile, you can try stZEN on testnet. As an alternative, you can also swap ZEN for stZEN directly with StakeHound, subject to KYC/AML procedures. QWhat if Sushiswap does not have enough stZEN for large buyers?
Buyers are also serviced by StakeHound and Copper that allows swapping ZEN for stZEN on a 1:1 basis. Note that both require KYC/AML checks. QIs stZEN – ZEN exchange possible through StakeHound only? What’s the typical wait time for either ZEN-> stZEN and stZEN->ZEN exchange?
It is possible to exchange between ZEN<>stZEN through StakeHound and Copper. Average wait time with StakeHound is about 4 hours and you can exchange any amount you choose. Copper allows for instant swaps but please be aware they are not servicing small orders. Also note that both StakeHound and Copper require clients to go through the KYC/AML process. QCan US citizens and residents also acquire stZEN?
Yes. If you are a US citizen and want to swap ZEN:stZEN on a 1:1 basis at StakeHound, you will need to do the KYC/AML process and hold an accredited investor status. Otherwise, US citizens and residents can freely buy and sell stZEN on SushiSwap. QHow do I deal with the high gas fees on Ethereum’s network?
Any transactions utilizing the Ethereum network incur ETH gas fees. If gas fees are a concern, you can choose to exchange ZEN<>stZEN directly with StakeHound at a 1:1 ratio. Ethereum gas fees can be tracked on Etherscan.
QCan I provide liquidity to stZEN pools on SushiSwap?Yes, if interested you will be able to provide liquidity directly to the stZEN pools on SushiSwap.
QWill I have to claim stZEN rewards manually or will they be automatically received?stZEN staking rewards will be distributed by StakeHound to wallets holding stZEN on a weekly basis – in line with Horizen node reward distributions.
QIf I currently have ZEN staked on a node, can I get stZEN with that same staked ZEN?If you want to get stZEN using the ZEN that is currently running your nodes, you must give up the nodes and trade the ZEN for stZEN. If you want to keep the nodes you are currently running, the ZEN must stay in the same address, and you will need to use different ZEN or other new assets to get stZEN.
Please be aware that you will automatically earn Horizen node rewards from stZEN by just holding it in your Ethereum wallet.