Zunami Protocol has launched $UZD, a native stablecoin. The decentralized stablecoin is backed by LP tokens from Stake DAO, Convex, Goldfinch, and Curve Finance.
Zunami Protocol Launches Native $UZD Stablecoin
Zunami Protocol, the first decentralized yield aggregator that helps stablecoin holders keep their assets in a profitable place, has launched its native stablecoin, the $UZD.
With the Zunami Protocol DAO technique, customers of the platform can enjoy increased aggregator APY. This is due to the platform’s auto-compounding and rebalancing technique.
The Zunami Protocol is a yield aggregator that is compatible with stablecoins. It enables users to obtain the greatest return available on the crypto market by offering high liquidity in stablecoins.
Since Zunami offers a cross-chain gateway, it is now far less expensive for smaller retail users to communicate with Ethereum protocols originating from L2s and EVM chains.
One major issue that stablecoins have faced recently is the issue of collateralization. In 2022, several stablecoins have lost their peg, with the case of TerraUSD and LUNA being the most famous case.
Stablecoin issuers like Tether have even taken steps to ensure its USDT stablecoin is fully collateralized. Moreover, several users became skeptical of stablecoins following the Terra crisis.
However, Zunami seeks to provide users with a decentralized stablecoin that is safe and governed by a DAO system. The platform beehives its stablecoin will solve the recent problem of de-pegging some stablecoins have faced.
The use of UZD completely resolves the problems most stablecoins face. Besides, it is a decentralized stablecoin, collateralized by a collection of different solid crypto assets.
Instant redemption of assets serves as a defense against depeg, ensuring the integrity of the asset. Furthermore, $UZD is an extremely efficient use of capital. This is because of its huge native APY offered by the most lucrative pools on Curve.
Zunami Working Towards A Decentralized Stablecoin
Kirill Kozlov, Zunami Protocol’s founder, stated:
“The market requires a stablecoin system that is completely decentralized, lucrative, and safe, and one that is governed by the DAO mechanism. We have come to the conclusion that the utilization of DAO stablecoins is the only transparent approach to hold wealth and generate returns, and we have high hopes that the cryptocurrency ecosystem will support our progress.”
Meanwhile, the Zunami Protocol staff has also developed a unique Early Bird initiative for liquidity providers. This initiative is intended to encourage the UZD/3CRV pool, which is on Curve Finance, by providing additional $UZD pool prizes.
The purpose of this initiative is to raise the level of the Curve UZD pool to between 20 and 30 percent APR within the next months.
Zunami is a decentralized autonomous organization (DAO) that uses stablecoins. The platform resolves the main problems with the present yield-farming protocols by optimizing the interplay with DeFi. Consequently, this makes it simpler and less expensive to use.
In addition, the platform increases the profitability of users by rebalancing and differentiating their funds. The UZD is a dollar-backed stablecoin that has wrapped stable assets as collateral.
The wrapped stable assets are from Convex and Curve through the Zunami Protocol. According to Zunami, this stablecoin provides holders sustainable revenue through the Zunami Protocol Yield Aggregator technique.