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Summary of CZUSD
- CZUSD is a digital currency within the CZODIAC ecosystem, facilitating seamless exchange between products and services.
- It’s designed to provide liquidity for smooth transactions, with a dollar peg but not a strict 1:1 ratio.
- CZUSD has two primary mechanisms: capital controls through CzusdGate and a flexible exchange rate via ScorchPeg technology.
- CzusdGate allows users to swap between CZUSD and BNB, with daily net outflow limits and capital controls.
- ScorchPeg system helps maintain the CZUSD peg to USD, holding a portion of BNB in reserve and managing value through trades on Pancakeswap.
- The Treasury’s Gnosis
About CZUSD: Unlocking the Power of Cryptocurrency Trading
CZUSD is a distinctive digital currency that operates at the heart of the CZODIAC ecosystem, serving as a conduit for effortless exchange between diverse products and services. Specifically designed to facilitate seamless conversion between BNB and the CZODIAC ecosystem, CZUSD strives to provide its users with the necessary liquidity to ensure smooth and efficient transactions.
Unlike traditional stablecoins, CZUSD operates more akin to a centrally managed currency, pegged to the US dollar. This design affords it greater autonomy over its monetary policy, enabling the currency to more effectively foster growth within the CZODIAC ecosystem. Notably, while CZUSD generally strives to maintain a 1:1 parity with USD, it may occasionally deviate from this ratio, and thus should not be regarded as an inviolable principle.
To preserve its autonomy in monetary policy, CZUSD employs two key mechanisms: capital controls facilitated by CzusdGate and a flexible exchange rate enabled by ScorchPeg technology. The CzusdGate provides users with a seamless experience when swapping between CZUSD and BNB, while also enforcing daily net outflow limits that reset through capital controls. Any attempts to exploit the CzusdGate for arbitrage purposes may result in blacklisting and asset seizure. Users can access the CzusdGate directly at
https://cz.farm
.
The ScorchPeg system is a pioneering stabilization protocol designed to maintain the CZUSD’s parity with the US dollar. By setting aside a portion of BNB in reserve, the ScorchPeg system dynamically adjusts the CZUSD value through strategic trades on Pancakeswap, ensuring it remains as close to $1 as possible. Under normal market conditions, the peg remains robust. However, during periods of market turmoil, the ScorchPeg system temporarily suspends operations, allowing CZUSD to float freely. This adaptive feature enables the currency to exercise flexibility in its monetary policy and safeguards the security of assets held within the Treasury’s Gnosis Multisig Vault. By avoiding the forced sale of assets at a loss during times of stress, CZUSD is well-positioned to rebound to its $1 peg once market stability is restored.
The Treasury’s Gnosis Multikey Safe assumes a pivotal role in safeguarding all collateral backing CZUSD, thereby ensuring the currency’s perpetual overcollateralization and shielding it from potential bank runs. This robust system employs six distinct keys to secure the CZODIAC collateral, thereby rendering it virtually inaccessible to hackers unless they gain control of at least three of these keys.
Within the CZODIAC ecosystem, CZUSD users can tap into a diverse array of products and services. This comprehensive suite includes BEP20 tokens such as LSDT, DGOD, LRT, and others; unique NFTs like USTSD Silver Dollar NFTs, and innovative DeFi products like CZUSD Notes. The multifaceted nature of CZUSD renders it an appealing choice for users venturing into the expansive cryptocurrency realm.