ZeUSDPrice

(ZEUSD)

ZeUSD addresses the need for a truly stable, transparent, and compliant digital asset by linking the vast liquidity and stability of Real World Assets (RWAs) to the blockchain. It offers a secure, decentralized alternative to traditional stablecoins, mitigating risks associated with solely crypto-native collateral. By providing a stable token backed by tangible assets like US Treasuries, ETFs, and Money Market Funds, ZeUSD opens new avenues for capital efficiency, institutional participation, and reliable value transfer within the Web3 space, empowering users with a trusted financial instrument.

ZeUSD is robustly collateralized by a diverse portfolio of both on-chain and off-chain Real World Assets (RWAs). Accepted collateral types include highly liquid and low-risk financial instruments such as US Treasuries, Exchange-Traded Funds (ETFs), and Money Market Funds. These assets are securely held through distinct mechanisms: on-chain RWAs are managed within isolated, access-controlled escrow smart contract vaults, ensuring transparency and immutability. Conversely, off-chain assets are safeguarded in traditional or omnibus escrow accounts, maintaining a clear separation and secure holding structure to back every ZeUSD in circulation.

ZeUSD employs several critical stability mechanisms to safeguard its peg. A primary safeguard involves the strategic application of Safe Loan-to-Value (LTV) ratios during the collateralization process. These carefully set LTV ratios create a robust protective buffer, significantly insulating ZeUSD from potential price fluctuations or downturns in the underlying Real World Asset (RWA) collateral. This proactive approach ensures that even if the market value of the collateral assets experiences a decline, there remains ample value to cover the issued ZeUSD, thereby preserving its stability and maintaining its intended fixed value.

The minting process for ZeUSD begins when users deposit eligible Real World Assets (RWAs) as collateral into the protocol. In return for contributing these assets, users receive newly minted ZeUSD tokens and are also provided with minting rewards, incentivizing participation. To redeem their collateral, users must first repay their outstanding ZeUSD position. Once the ZeUSD debt is cleared, the user can then retrieve their deposited RWAs, subject to a nominal withdrawal fee. This fee contributes to the protocol's revenue, supporting its long-term sustainability and operations.

In the event that users do not fulfill their obligations to redeem their ZeUSD positions against the underlying Real World Assets (RWAs), Zoth, as the issuer, initiates a structured liquidation process. The specific action taken by Zoth is determined by the Loan-to-Value (LTV) ratio of the unredeemed position. Depending on this ratio, Zoth will either proceed to liquidate the underlying collateral assets to cover the outstanding ZeUSD or, alternatively, reinvest the assets back into the same RWA product. This mechanism ensures the protocol remains fully collateralized and maintains the stability of ZeUSD.

Currently, the issuance of new ZeUSD tokens is exclusively conducted on the Ethereum network. This foundational choice allows ZeUSD to leverage Ethereum's robust security and established ecosystem. However, ZeUSD is intentionally designed as an omnichain token. This architectural decision means that once ZeUSD is initially minted on Ethereum, it possesses the capability to be seamlessly bridged and utilized across any other supported blockchain network. The project has clear strategic plans for future expansion, aiming to extend its availability to additional blockchain networks to enhance accessibility and interoperability throughout the broader Web3 space.