Core Component
Overview
The zUSD architecture consists of several key components that work together to create a trustless stablecoin system leveraging Miden's zero-knowledge proof capabilities. Here are the core components and their roles:
zUSD Token
The base stablecoin that maintains a 1:1 peg with USD through a combination of collateralization and proof mechanisms.
Minting/redemption functionality
Proof of reserves verification
Integration with Miden Network for transaction validation
stzUSD-X (Staked zUSD by Asset Managers)
A yield-bearing variant of zUSD that allows users to earn rewards by staking their zUSD tokens:
Staking/unstaking of zUSD
Yield distribution
Dynamic ratio updates based on Asset Managers performance
ABS Finance (Asset-Backed System)
The core protocol that manages collateralization and solvency of the system.
Maintains proof of solvency
Handles profit settlement
Verifies system solvency
CEX/DEX Integration
External exchange integrations.
Asset commitment verification
Price feeds
Liquidity provision
Cross-chain bridging capabilities
Miden Network
The underlying blockchain infrastructure
Zero-knowledge proof verification
Transaction validation
Asset commitment verification
Cross-component communication
Asset Managers
Manage stzUSD-x and verify custodian`s solvency
Manage committed assets
Providing liquidity
Maintaining collateral ratios
Executing trading strategies
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