Collateral Pool (Backing Mechanism)

The Collateral Pool consists of curated DeFi strategies and assets. At 06:00 UTC daily, the protocol verifies that outstanding yzUSD is backed by > US$1 per unit.

• Excess NAV (over collateralization) is transferred to the Reserve Fund.

• NAV shortfalls are covered from the Reserve Fund. “Excess” or “shortfall” refer to deviations from the value needed to keep each yzUSD fully backed at US$1.