# Layer 3: USDZe

## The Yield Layer

Functioning as the ecosystem’s primary liquidity engine, USDZe is a "vault-of-vaults" that receives user capital and, via a risk-weighted allocator contract, feeds that capital into the underlying zVaults based on governance-approved weights. This flow ensures USDZe is fully backed by a diversified basket of high-quality assets, such as T-bills, corporate bonds, and market-neutral strategies, to deliver sustainable 5–10%+ risk-optimized returns.


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