# Product Fund Flows

The flow of funds for Yuzu Alpha is as illustrated below.

When the user [mints or redeems](https://yuzu-money.gitbook.io/yuzu-money/yuzu-stablecoin/minting-and-redeeming) yzUSD or yzPP, USDT0 is deposited into the [Collateral Pool](https://yuzu-money.gitbook.io/yuzu-money/yuzu-stablecoin/collateral-pool). USDT0 in the Collateral Pool is then deployed into curated DeFi strategies.

<figure><img src="/files/q56bpZ2ZbhFld9k1tjGp" alt=""><figcaption></figcaption></figure>


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