Yuzu Protection Pool (yzPP)
yzPP is a first loss tranche inspired by Resolv’s RLP. Depositors in yzPP accept first loss risk on the underlying strategies in exchange for higher target yield, funded partly by the Reserve Fund.
Minting: Deposit USDC to mint yzPP.
Yield Composition: (a) base yield tracking syzUSD; (b) an additional protocol funded yield budget sized by policy.
Exit Condition: redeemable at any time provided the yzUSD collateralization ratio remains > 110%.
Program Cadence: The additional yield budget is set weekly on Wednesdays at 04:00 UTC (covering Wed 04:00 UTC to Wed 03:59 UTC).
In the event of a loss incurred by the Collateral Pool, minting and redemption of yzPP — including any redemptions currently in process — will be paused for an initial period of 7 days. This pause may be extended to allow for a full assessment of the situation.
Access & Eligibility (Accredited/Qualified Only)
yzPP participation is 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 to the program’s reasonable satisfaction.
As a condition of access, each participant must (i) provide reasonable proof of Eligible‑Investor status and (ii) execute a declaration stating that they are and wish to be treated as an Accredited/Qualified/Institutional/Sophisticated investor (as applicable) under the laws and regulations of their jurisdiction. Yuzu Money may decline or revoke access, or require updated evidence, at any time to remain compliant. Retail users are not eligible to mint, subscribe, or redeem yzPP.
The yzPP Reward Mechanism and First-Loss Mechanism are explained below:
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