CZodiac Litepaper
Search…
⌃K
💵

Stablecoin: CZUSD

Overcollateralized Stablecoin with loose peg to 1 USD

Purpose

CZUSD's purpose is to provide scalable liquidity for products and services. It allows the free exchange between different products within the ecosystem based on the notional USD value of the products. It is also responsible for entrance and exit liquidity, so community members can transfer BUSD into and out of the ecosystem.
CZUSD is more similar to a managed central bank fiat currency with a dollar peg than it is to a traditional stablecoin. According it is subject to the "Impossible Trinity" all sovereign currencies face: The impossibility to both fix an exchange rate, have free capital flows, and a sovereign monetary policy. In order to better conduct an independent monetary policy, that is the the ideal monetary policy to maximize the growth of goods and services, CZUSD implements capital controls and a loose exchange rate. Capital controls are implemented via the "CzusdGate" technology while the exchange rate is managed via the "ScorchPeg" technology.
From time-to-time, CZUSD may trade against BUSD at significantly different rates than 1 CZUSD to 1 BUSD. It is a sovereign currency with a community operated monetary policy with the peg to 1 BUSD only as a general goal rather than a strict rule. It is not vulnerable to a run on reserves, popularly called a "bank run", as CZUSD will always be overcollateralized.
Collateral for CZUSD is held by the Treasury's Gnosis Multikey Safe.

Features

CzusdGate

With CzusdGate, even if the price of CZUSD is below $1 on exchanges, CZUSD can always be redeemed for BUSD. The CzusdGate allows users to swap CZUSD and BUSD with low fees. It implements capital controls to limit maximum daily outflows. Fees are reduced for verified wallets; if you would like to be verified, we announce verification opportunities every few months on Telegram and Twitter.
  • Swap BUSD for CZUSD, and vice versa.
  • Low fees, with improved rates for verified walelts.
  • Capital controls limit daily net outflows, reset every 24 hours.
  • Arbitration utilizing CzusdGate will result in blacklisting and asset seizure.
  • Access directly via https://cz.farm

ScorchPeg

The ScorchPeg manages the loose peg of CZUSD to BUSD. During normal operations, a portion of BUSD reserves are placed under the control of the ScorchPeg. The ScorchPeg will mint or burn CZUSD to maintain the $1 peg, trading on Pancakeswap with its BUSD reserves. Under periods of stress, the ScorchPeg will automatically disable itself and the CZUSD peg will float until the period is over. Since CZUSD is overcollateralized, it will always return to $1. By allowing the peg to float ing times of stress, the Treasury can better manage the ecosystem's monetary policy. As an example, times of stress are generally experienced when the wider crypto market is also suffering from an exit liquidity event. During these periods, the Treasury can avoid selling assets at steep discounts by allowing CZUSD to float and wait for the period of unusual stress to end.
  • Maintains a tight peg of 1 CZUSD to 1 BUSD under normal operations.
  • Allows the peg to loosen under times of market stress.
  • Assets are secured by the Treasury Gnosis Multisig Vault.
  • CA (BSC): 0xE68b79e51bf826534Ff37AA9CeE71a3842ee9c70
  • Chart
  • BSCScan