# Introduction

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### Liquidity Providers: A Pillar of Zaros Ecosystem

Liquidity Providers play a pivotal role in the Zaros Ecosystem, being the backbone of our stablecoin, USDz. Their contributions through LSTs and LRTs are vital in ensuring that USDz remains overcollateralized, thus securing the integrity and stability of the traders' positions.

### Incentive for Liquidity Providers

A significant 70% of the trading fees collected by the Perpetuals DEX is redistributed to Liquidity Providers (LPs) who participate in the ZLP Vaults. These vaults are designed primarily for generating ETH yields. Furthermore, an enhanced yield option is available through the [Boosted (Re)Staking Vault](https://docs.zaros.fi/overview/products/earn-re-staking-dapp/boosted-re-staking-vaults), offering LPs an even more attractive incentive structure.

### **How Yields Are Generated**

At the core of the Zaros Ecosystem lies the Earn (Re)Staking Decentralized Application, which functions as the central hub for Liquidity Providers. Here, LST and LRT holders have the opportunity to deposit their tokens into ZLP vaults. In return, they're rewarded with yields, making it a lucrative engagement for those looking to maximize their earnings within the ecosystem.


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