What is ZEUSD?

ZEUSD is a Liquid Yield asset backed by real yield generation from diversified sources, including both off-chain revenue streams and on-chain DeFi protocol integrations. Unlike traditional stablecoins that maintain static parity with fiat currencies, ZEUSD accrues value over time through productive capital deployment while maintaining price stability and capital efficiency.

The protocol is engineered for zero-slippage transactions, as the value of ZEUSD is determined directly from on-chain oracles rather than through automated market maker (AMM) mechanisms. This oracle-based pricing model eliminates the inefficiencies and value loss typically associated with large transactions in liquidity pool-based systems.

The oracle infrastructure operates through a decentralized attestation network where off-chain fund attestors provide consensus on ZEUSD's price. Attestations occur biweekly (twice per week), ensuring that the on-chain price reflects current underlying asset values with minimal latency. Each vault contributing to ZEUSD's backing has a designated attestor, supplemented by an additional independent attestor to enhance verification integrity. This multi-party attestation model creates accountability while maintaining operational efficiency.

To ensure attestation accuracy, attestors bear financial liability for any losses resulting from incorrect price reporting. Additionally, ZOTH token holders retain governance rights to challenge attestations they believe to be inaccurate, creating a checks-and-balances system that protects the protocol and its users from potential malfeasance or error.