💵Unstablecoin: CZUSD
Overcollateralized UnStablecoin thats never exactly $1
CZUSD, the native unstablecoin of the CZODIAC ecosystem, operates on an infinitely scalable liquidity framework that sets it apart from other token launch platforms. With CZUSD, tokens such as NFTs and BEP20 tokens can have significantly larger liquidity than usual, reducing the need for projects to raise substantial funds for liquidity. The CZUSD Gate protects is BNB collateral with automatic slippage set by the reserve USD value and the current CZUSD volume. The value of CZUSD is maintained but never at $1 through the Czusd Gate and dynamic liquidity provisioning, allowing for a secure, stable, and versatile DeFi ecosystem.
The CzusdGate burns CZUSD when CZUSD is swapped for BNB, and mints fresh CZUSD for deposited BNB. This CzusdGate mint and burn cycle keeps the CZUSD marketcap in line with demand. To prevent bank runs, the CzusdGate dynamically changes the swap rates for BNB to CZUSD to keep the value of CZUSD ranging around $1 in the long term. In the short term, the price of CZUSD can move dramatically downwards - and in the past, its fallen as low as $0.10 before recovering. Because the gate burns CZUSD, if CZUSD falls very low to $0.10, then every $1 of swaps burns 10 CZUSD. Since the MultisigTreasury securely holds BNB staked in on chain decentralized money markets, the rising value of the collateral plus the depreciation in CZUSD price forces the price of CZUSD back around $1 in the long term. In the past, recovery from large price movements downwards has usually taken minutes to hours to recover towards zero; in the most extreme events, it has taken several weeks to months. Keep this in mind when using CZUSD or CZUSD backed tokens; you may need to wait some time for your CZUSD or CZUSD backed tokens to recover their USD value. This mild risk of downward volatility comes with a huge benefit for the CZODIAC users; CZODIAC is able to infinitely increase the supply of CZUSD when its in demand, meaning products, services, and tokens can get cheap or even free access to liquidity such as through the Pawn Shop lending dapps, the Tenx Token launchpad, or in assets for the PermisionlessRPG game engine.
Four key benefits for CZUSD users are:
Scalable Liquidity: CZUSD offers infinite scalable liquidity, enabling tokens to have significantly larger liquidity than typically possible. This allows more assets to be allocated to productive uses.
Unstable Value: The CZUSD Gate, coupled with the CzusdGate mint/burn mechanism and dynamic liquidity provisioning, ensures that the value of CZUSD is never exactly $1 but always recovers from price collapses.
Security: CZODIAC's assets and contract admin keys are secured by the Gnosis Treasury Safe, a 3/6 multisig safe on BNB Chain, ensuring the safety of users' investments.
Versatility: The CZODIAC platform, supported by CZUSD, is adaptable and supports a diverse range of products and services, from token launches to NFT trading and blockchain gaming, offering users a variety of engagement opportunities within the DeFi space.
The Purpose of CZUSD: Unlocking Liquidity for All
CZUSD's infinitely scalable liquidity is a key factor that sets CZODIAC apart from other token launch platforms. By enabling tokens, including NFTs and BEP20 tokens, to have significantly larger liquidity than typically possible, projects launching on CZODIAC do not need to raise substantial funds for liquidity. Consequently, more assets can be allocated to productive uses, creating a competitive advantage for CZODIAC. This increased liquidity also fosters stability in the ecosystem, as the wide variety of tokens with different risk profiles, customer bases, and use cases reduces the probability of a run on the stablecoin.
CZODIAC's assets are secured by the Gnosis Treasury Safe, a 3/6 multisig safe on BNB Chain, ensuring the safety of users' investments. Furthermore, all products within the CZODIAC ecosystem have their primary liquidity in CZUSD, which translates into extremely low fees and ease of trade for users who keep their assets within the ecosystem. This streamlined and cost-effective approach attracts users to CZODIAC's diverse range of products and services, resulting in a thriving and stable DeFi environment. The combination of CZUSD's destabilization protocol, enhanced security measures, and low transaction costs positions CZODIAC as a leading innovator in the DeFi space.
CZUSD Destabilization Protocol
The CZUSD Destabilization Protocol is a critical component of the CZODIAC ecosystem, designed to maintain the value of CZUSD, the native stablecoin, at never exactly $1. This is achieved through the use of the innovative CZUSD Gate and dynamic liquidity provisioning. These advanced features work in tandem to ensure that CZUSD's value remains stable while providing ample liquidity for the ecosystem's wide range of financial products and services.
The CZUSD Gate relies on Chainlink oracles to monitor the BNB price and adjusts redemption rates for CZUSD and BNB based on prevailing market conditions. By holding BNB in reserve, the CZUSD Gate is able to keep CZUSD around $1 arbitration between the Gate and dexes such as Pancakeswap and Ellipsis. During normal market conditions, the price remains stable; however, in times of market stress, the CZUSD Gate dynamically increases slippage, allowing CZUSD to float freely. This flexibility in monetary policy ensures the security of assets held by the Treasury's Gnosis Multisig Vault and enables CZUSD to return to around $1 as soon as the market restabilizes. The dynamic liquidity provisioning further enhances the stability of the CZODIAC ecosystem by accommodating a diverse range of tokens with varying risk profiles, customer profiles, and users, effectively reducing the likelihood of a run on the stablecoin.
The CZUSD Destabilization Protocol not only bolsters the stability and liquidity of the CZODIAC ecosystem, but also enables it to support a diverse range of products and services. From token launches to NFT trading, the robust liquidity provision and secure asset management empower users and developers to confidently engage with the platform. This versatility and adaptability make CZODIAC a powerful force in the DeFi space, with CZUSD playing a critical role in the platform's ongoing success and growth.
CZUSD Links 📃
CA (BSC):
0xE68b79e51bf826534Ff37AA9CeE71a3842ee9c70
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