Mechanism of czBNB
The Liquid Restaked Token
czBNB is a liquid retaking token representing a user’s restaked position at Corez. The token facilitates several critical functions within the Corez ecosystem:
Staking and Token Minting: Users deposit BNB or Liquid Staked Tokens (LSTs) into the Corez protocol to mint czBNB tokens. These tokens represent fractional ownership of the underlying staked assets.
Distribution to Node Operators: The deposited assets are allocated to various Node Operators within the Corez protocol, ensuring efficient utilization of the staked assets.
Accrual of Rewards: Rewards generated from diverse services accumulate within the czBNB contracts. The value of czBNB tokens reflects the underlying value of the staked assets and the accrued rewards.
Liquidity Provision and DeFi Integration: Users can swap their czBNB tokens for other assets on Automated Market Makers (AMMs), providing instant liquidity. Additionally, czBNB tokens can be redeemed for underlying assets and leveraged within various decentralized finance (DeFi) applications.
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