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CZUSD is a unique digital currency within the CZODIAC ecosystem that enables seamless exchange between various products and services. It acts as a gateway for easy conversion between BNB and the CZODIAC ecosystem, providing users with the liquidity required for smooth transactions. Unlike traditional stablecoins, CZUSD functions more like a centrally managed currency with a dollar peg, granting greater control over its monetary policy to support growth within the CZODIAC ecosystem. However, it's important to note that while CZUSD aims to maintain a 1:1 peg with USD, it may occasionally trade at different rates. CZUSD incorporates two primary mechanisms to maintain its independent monetary policy: capital controls through the CzusdGate and a flexible exchange rate via ScorchPeg technology. The CzusdGate allows easy swapping between CZUSD and BNB while implementing daily net outflow limits. Attempting to use the CzusdGate for arbitrage purposes can result in blacklisting and asset seizure. The ScorchPeg system is an innovative stabilization protocol for CZUSD that helps maintain its peg to USD. It manages CZUSD value by holding a portion of BNB in reserve and trades on Pancakeswap to keep it close to $1. During normal market conditions, the peg remains strong, but during market stress, the ScorchPeg system temporarily pauses, allowing CZUSD to float. This flexibility in managing monetary policy ensures the security of assets held by the Treasury's Gnosis Multisig Vault. The Treasury's Gnosis Multikey Safe secures all collateral for CZUSD, overcollateralizing the currency and protecting it against potential bank runs. The Multikey Safe employs six separate keys to secure the CZODIAC collateral, requiring control of at least three keys to access the collateral. Within the CZODIAC ecosystem, CZUSD users have access to various products and services, including BEP20 tokens like LSDT, DGOD, LRT, and others; NFTs like USTSD Silver Dollar NFTs, and DeFi products like CZUSD Notes. The versatility of CZUSD makes it an attractive option for users exploring the broader cryptocurrency landscape.
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