Algoritmic Peg Stabilizer
We would like to introduce the new entity Zunami - APS (Algoritmic Peg Stabilizer). Now users can stake UZD within the protocol's interface.
When creating APS, we were inspired by AMO from FRAX, and a similar mechanism is used in Elixir from Alchemix. Their main task is to maintain the peg of dollar stablecoins to the price of $1 by ensuring the correct proportion in the pool. Let's explain the functionality using the example of the UZD/FRAXBP pool on Curve. If there is an imbalance in the pool towards an increase in the FRAXBP proportion, APS withdraws USDC from the pool, deposits them into Zunami, mints UZD, and then deposits them back into the pool.
In case of an imbalance towards a large amount of UZD in the pool, APS either withdraws them to a vault strategy or performs UZD redemption, followed by withdrawing USDC and depositing them into the UZD/FRAXBP pool. APS is available through a new UZD Staking section on the website. The benefits for the user include: Inexpensive deposit/withdrawal of funds through the vault strategy. Rewards are automatically sold and reinvested. Funds are diversified and rebalanced across UZD pools on various DEXs.
The APS launch also marks the beginning of a new era in Zunami's history. UZD, and in the future, other aggregated stablecoins (zETH, zCRV...) will become the main products of Zunami, while the aggregators will be hidden under the hood. We plan to close the ability for users to independently mint/redeem UZD and deposit directly into the aggregator. Those who wish to receive native UZD yield can simply buy it through a DEX, and for a yield boost, stake it in APS. At the launch, UZD APS will use the following strategies: Vault strategy, UZD/FRAXBP on StakeDAO, UZD/FRAXBP on Convex, UZD/BB-a-USD on Balancer. Use Zunami APS and safely get the best yield in the market.
Last modified 15d ago