Yuzu Protection Pool (yzPP)

DeFi Suite: Junior tranche product

yzPP is Yuzu Money's DeFi Suite first-loss tranche. Depositors accept priority exposure to any losses on the underlying strategies in exchange for higher target yield, funded partly by the Reserve Fund (Reward Mechanism). yzPP sits inside the backing asset pool alongside yzUSD, strengthening the overall collateralization ratio.

Formulas:

$Backing\ Assets = { yzUSD_{TVL} \ +\ yzPP_{TVL} \ +\ Reserve \ Fund}$

$Collateralization\ Ratio = \frac{ Backing \ Assets}{yzUSD_{TVL}}$

Minting:

Deposit USDT0 to mint yzPP (Plasma).

Yield Composition:

yzPP yield has two components: a base yield tracking syzUSD, and an additional protocol-funded yield budget set daily at 04:00 UTC (covering daily 04:00 UTC to 03:59 UTC). The additional budget is sized by the risk premiums policy.

Redemption Conditions:

yzPP is redeemable at any time, subject to a 30-day redemption period during which yield continues to accrue. Throughout this window, depositors remain exposed to first-loss in the event of any loss incurred by Yuzu Money. Redemption orders must meet a minimum size of 5,000 yzPP.

Pending orders can be cancelled (24 hours after the redemption request) and resubmitted at any time. However, only the most recently submitted redemption order will be fulfilled. (e.g. an order placed on Day 7 supersedes one placed on Day 1.)

In the event of a loss to the Collateral Pool, all yzPP minting and redemptions, including redemption orders already in process are paused until a full assessment is complete.

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_{Access & Eligibility (Accredited/Qualified Only)}

_{Primary minting and redeeming of yzPP are restricted to Accredited, Qualified, Institutional, or Sophisticated Investors ("Eligible Investors") based on their country of residence or incorporation. Access is subject to completion of KYC/KYB, sanctions screening, AML/CFT checks, and Source-of-Funds/Source-of-Wealth verification. Each participant must also provide reasonable proof of Eligible Investor status and execute a declaration confirming they are and wish to be treated as such under the laws and regulations of their jurisdiction. Yuzu Money may decline, pause, or revoke access, or require updated evidence, at any time to remain compliant. Retail users are not eligible to mint, subscribe, or redeem yzPP.}

_{Secondary Market Trading (Open)}

_{Once validly minted into circulation, yzPP is intended to function as yield-bearing stablecoin (Junior Tranche subject to first-loss risk) that may be traded by anyone in relevant secondary markets — including CEXs and DEXs — that choose to list or support it, subject to those venues' own rules and applicable law. Yuzu Money does not operate these venues.}