Scorch Peg
Pegs CZUSD to $1 while burning CZF.
The Scorch Peg is an automated fully collateralized peg for CZUSD. Unlike other collateralized pegs, the Scorch Peg's operation is fully automated and does not require users to deposit assets.
The Scorch Peg actively trades the CZUSD/BUSD peg back to $1 whenever it goes over or under the peg. It takes the profits from this trading activity and deposits it into a BUSD Belt vault. This vault automatically compounds the BUSD interest. Additionally, BELT tokens are generated which are collected by the protocol for a BELT v1 Pool. The BUSD interest from the Scorch Peg is perodically collected and used to purchase and burn CZF from the market.
Last modified 1mo ago
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