veANZ

The vote-escrow model used in veANZ is built to benefit long-term ANZ holders as the protocol grows:

• “He who controls the yield controls the universe”: veANZ holders have direct control over the flow of yield, effectively enabling them to steer the protocol’s growth. The rewards directed to a specific gauge increase that gauge’s attractiveness (higher APYs and rewards), incentivizing more liquidity. Over time, this deepens liquidity pools, makes USDz more accessible, and increases the utility and value of ANZ itself.

• Alignment with the Protocol’s Growth: By locking ANZ into veANZ, holders commit to the long-term health of the ecosystem. As USDz’s adoption and liquidity expand, ANZ holders gain increased value from their vote-escrowed positions in terms of the size of the reward streams that are voted on. This creates a virtuous cycle: more adoption and liquidity attract more users, increasing demand for ANZ as more people seek voting influence over rewards.

• Fee Capture and Revenue Sharing: As the protocol grows, fees generated from protocol owned liquidity — such as trading fees, third party incentives, or lending income— can be shared back with veANZ holders. This means that holding veANZ not only grants voting power but also potentially entitles holders to a share of the protocol’s revenue. Over time, this model lets ANZ holders directly benefit from increased protocol activity, creating real value for committed participants.

• Sustainable Yield Opportunities Across Market Cycles: USDz’s RWA backing is designed to provide consistent yield, even during bear markets when crypto-native yield sources dry up. This means that veANZ holders play a core part in allocating a valuable stream of rewards. Thus, Anzen remains attractive to both passive and active participants through every market cycle, supporting USDz’s role as a stable asset and increasing demand for ANZ.

How ANZ Holders Benefit as the Protocol Grows

As USDz adoption grows, so does the demand for ANZ because of its intrinsic utility. The veANZ model attracts both passive and active users.

• Increased Demand with limited supply: Since locking ANZ reduces its circulating supply, the model creates scarcity. As USDz grows, veANZ voting power becomes more valuable, driving up the value of ANZ.

• Strategic Protocol Partnerships: The influence of veANZ over gauges will become valuable not only within the ecosystem but also to external protocols looking to attract liquidity. For instance, a lending protocol might offer rewards for veANZ holders to vote for its gauge, which can increase protocol partnerships and strengthen USDz’s role in DeFi.

• Enhanced Value in Market Downturns: Unlike many crypto assets, USDz and ANZ can offer yield opportunities during market downturns, thanks to the RWA backing. ANZ holders, therefore, stand to benefit from a more resilient protocol that has sustained revenue even in adverse market conditions.

The veANZ model doesn’t just build value within the protocol but actively positions USDz to thrive across a wide range of DeFi contexts. ANZ’s design allows it to move into whichever markets are most profitable or popular at any given time, thanks to the ability to direct incentives. This portability is especially valuable for a stablecoin, as it lets ANZ follow yield wherever it may be most attractive, ensuring its role in DeFi isn’t static or constrained.

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