Collateral Pool (Backing Assets)
The Collateral Pool consists of curated DeFi strategies and assets. Through Accountable, it is verified in near real-time that yzUSD is backed by >$1 of assets.
When the Backing’s NAV exceeds the amount required to maintain full backing, the surplus (excess NAV) is transferred to the Reserve Fund.
Conversely, any NAV shortfall is covered from the Reserve Fund.
“Excess” or “shortfall” refer to deviations from the value needed to keep each yzUSD fully backed at US$1.
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