**zunStables (zunUSD/zunETH/zunBTC)** are ERC-20 stablecoins innovatively minted using the Omnipools as a collateral. These stablecoins are intricately linked to depositor contributions within Zunami's omnipools, ensuring a direct 1-to-1 peg to either the US Dollar, Ether or BTC.
Fundamentally, zunStables backed by strategies that provide liquidity to Curve pools, generating substantial returns. The entirety of the yield generated from zunStables collateral is distributed among ZUN token stakers. In a reciprocal process, the protocol distibutes ZUN emmision,incentivizing pools with zunStables and thereby establishing a self-sustaining economic cycle.
zunStables are 100% collateralized and incorporate a safeguard against depegging through the Algoritmic peg stabilizer mechanism. This mechanism manages minting and redemption based on the proportion within the curve pool
An additional layer of security lies in the selection of stablecoins for use in Omni pool strategies. If any stablecoin deviates by more than 4% from its peg, an automatic exit from the position is activated.
zunStables deftly address the three-fold challenge of stablecoins:
* Decentralization: DAO voting facilitates the management of collateral allocation, driving decentralization in the ecosystem.
* Capital Efficiency: Leveraging Omnipools as collateral and channeling earnings incentivizes a capital-efficient approach.
* Depeg protection: Both the Algorithmic Peg Stabilizer (APS) and crisis-oriented strategies like recapitalization and automatic withdrawal safeguard zunStables from depegging risks.
In essence, zunStables not only pioneer a novel approach to stablecoin issuance but also provide a secure, decentralized, and capital-efficient solution that reconciles the challenges inherent in stablecoin stability and governance.
---
# Agent Instructions: Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter:
```
GET https://zunamilab.gitbook.io/zunami-docs/protocol-overview/zunstables.md?ask=
```
The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.