Understanding LP Staking on Unizen

As Unizen continues to expand across chains and scale our infrastructure, deep, decentralized liquidity is becoming more critical than ever. With the launch of LP staking, we’re entering a new phase, one where the community plays a direct role in powering the protocol and earning along the way.

If you’ve been asking, “What is LP staking?” or “Why did Unizen launch this?”, this article is for you.

What Is LP Staking?

LP staking is the process of providing liquidity to a decentralized exchange (DEX) and then staking your LP (Liquidity Provider) tokens to earn rewards.

On Unizen, this means adding ZCX and BNB to the bZCX/wBNB pool on PancakeSwap, receiving LP tokens, and staking those tokens via zcx.com/earn to earn ZCX.

As a liquidity provider, you earn in two ways:

• Trading fees from PancakeSwap, generated every time someone swaps through the pool
• ZCX staking rewards through the Unizen platform

It’s a win-win:

You help power Unizen’s liquidity, and get rewarded for it.

Why LP Staking?

As a liquidity aggregation protocol, Unizen’s mission is to route trades across the most efficient paths, and that starts with deep native liquidity.

LP staking helps us:

• Strengthen decentralized liquidity for ZCX
• Improve swap execution and reduce slippage
• Rely less on third-party liquidity, increasing protocol control

It’s about growing a healthier, more self-sustaining DeFi ecosystem.

What Are LP Tokens?

When you add liquidity to a trading pair like bZCX/wBNB, PancakeSwap issues you LP tokens.

These tokens represent your share of the pool and the value you've contributed. As traders use the pool, you earn a portion of the swap fees, and now, by staking those LP tokens on Unizen, you also earn ZCX rewards.

How to Get LP Tokens (Step-by-Step Guide)

Ready to start earning with LP staking? Here's how to do it:

1. Bridge ZCX to BNB Chain

If your ZCX isn’t already on BNB Chain, follow this tutorial:

👉 How to Bridge to BNB for the ZCX DAO

2. Get wBNB and bZCX in the Right Ratio

To add liquidity to the pool, you’ll need equal dollar amounts of wBNB and bZCX. You can get them in one of two ways:

• Swap BNB (or any supported token) for wBNB and bZCX
• Or swap 50% of your wBNB for bZCX

3. Provide Liquidity on PancakeSwap

Head to the ZCX/BNB liquidity pool here:

👉 Provide Liquidity on PancakeSwap

• Approve wBNB and bZCX if prompted
• Add both tokens in equal value
• You’ll receive CAKE-LP tokens representing your pool share

4. Stake LP Tokens on Unizen

Go to zcx.com/earn and:

• Approve the CAKE-LP token if prompted
• Stake your tokens
• Start earning ZCX rewards immediately

The Risks: Understanding Impermanent Loss

Impermanent loss occurs when the value of one asset in your LP pair changes significantly compared to the other. When this happens, the pool automatically rebalances your position which can result in less value compared to simply holding both tokens.

However, that doesn’t always mean you end up with a loss overall.

Many LPs still come out ahead due to:

• DEX trading fees
• Staking rewards (like those provided by Unizen)
• And in some cases, market movement that favors their LP exposure over time

Even in scenarios where one asset rises and the other drops (e.g., BNB up, ZCX down), users may still end up net positive, especially when protocol rewards are strong.

LP staking involves risk, but it also offers multiple layers of upside.

The Road Ahead: Earn 1.5 → Earn 2.0

This current phase of LP staking marks the beginning of Unizen Earn 1.5, our first iteration of LP-based rewards.

But it doesn’t stop here.

We’re already designing Earn 2.0, which will introduce:

• Mechanisms to help mitigate impermanent loss
• Dynamic reward structures to optimize capital efficiency
• More flexible and advanced pool configurations

“This marks the first phase of a broader liquidity strategy. More advanced mechanisms are in the works to further enhance capital efficiency and value preservation for liquidity providers.”

Why DeFi Liquidity Benefits Everyone

More liquidity doesn’t just help liquidity providers, it lifts the entire ecosystem.

• Better execution: Swaps become smoother and cheaper
• More volume: Means more protocol revenue and ZCX burn
• Greater decentralization: Less reliance on CEXs or external routing
• DAO impact: ZCX liquidity on BNB Chain strengthens Unizen’s governance foundation

When liquidity flows, the entire protocol grows.

Final Thoughts

LP staking is live now!

By participating, you’re helping build the infrastructure that powers Unizen’s future and earning rewards along the way.

The earlier you join, the stronger your position.

👉 Stake now: zcx.com/earn

👉 Need help? Join the community on Telegram or read our bridging guide