🔒Investment Mechanism

Fund flow and rewards pipeline for Zofinity, reflecting that capital is partly managed on-chain and partly via backend operations on external liquidity platforms.

Summary / Key idea Investors deposit USDT into Zofinity → a Farm position is created on-chain → pooled USDT is (operationally) provided as liquidity / yield farming on reputable exchange(s) → yields are returned as USDT → protocol uses those USDT profits to buy ZO on the open market and then distribute ZO to users as rewards. Principal (deposited USDT) remains withdrawable, with withdrawal requests executed after backend approval (≤ 24 hours).

Step-by-step flow

1. Deposit & Farm creation

   • User deposits USDT into Zofinity smart contract.

   • The system mints/records a Farm position (on-chain) tied to the user’s wallet — this is the proof of participation.

2. Allocation to liquidity / yield platforms

   • The protocol (via backend orchestration) allocates pooled USDT to provide liquidity and/or participate in yield farming on reputable external exchange(s) or liquidity platforms.

   • These operations are executed under controlled backend procedures while maintaining on-chain records for transparency where possible.

3. Harvesting yields (in USDT)

   • The external platform returns generated profits to Zofinity in USDT (harvested yield).

   • Harvest frequency and specific farming strategies are managed by the project’s operations team and may be optimized over time.

4. Buyback & reward distribution

   • Zofinity uses harvested USDT profits to buy ZO tokens on the open market.

   • Purchased ZO tokens are then distributed to users as rewards according to each Farm’s contribution/earning share (distribution / claim mechanics can be described in Rewards section).

5. Withdrawal process (principal & earned USDT)

   • Users may request to withdraw their deposited USDT or accrued ZO rewards.

   • Withdrawal requests trigger backend procedures to unstake/remove liquidity from external platforms if needed and return funds to the user.

   • All withdrawal requests are reviewed and processed within 24 hours (maximum), subject to standard security checks and anti-fraud procedures.

6. Transparency & security

   • On-chain events (Farm creation, staking/un-staking transactions, reward distributions) are recorded for auditability.

   • Backend operations that interact with external exchanges are logged and reconciled with on-chain activity to maintain traceability.