Diving Deeper: ANZ

ANZ is designed to provide utility and align incentives within the USDz ecosystem. It employs a vote-escrowed (ve) model, inspired by mechanisms in DeFi protocols like Curve and Pendle, where locked tokens can share protocol revenue and govern the allocation of token rewards and liquidity incentives.

Beyond governance, veANZ holders may also have exclusive access to certain protocol features and products.

Vote-Escrow Tokenomics

Curve pioneered the concept of vote-escrowed tokens with their vote-escrowed CRV (veCRV) model. In Curve, users lock CRV tokens for veCRV, in doing so stakers gain voting power and can vote on which liquidity pools receive rewards. This in turn motivates external protocols to buy CRV to vote, or bribe voters to increase the CRV rewards given out in their pools, creating a flywheel effect for CRV and liquidity growth for the protocols.

Pendle adds a unique dimension by enabling the tokenization and trading of future yield from yield-bearing assets. Through Pendle, users can split their assets into two parts:

• Principal Tokens (PT): Represent the underlying asset at maturity.
• Yield Tokens (YT): Represent the yield generated by the asset until maturity.

This separation allows users to speculate on or lock in future yield independently of the asset’s principal value. Additionally, the vePENDLE model enables holders to vote on reward allocations for specific liquidity pools, rewarding long-term alignment and incentivizing liquidity growth for specific assets on Pendle.

Both models reward long-term alignment between user and protocol. By locking tokens, users participate directly in the protocol’s success, and in return, they earn a portion of the protocol yield. Additionally, the ability to direct where incentive tokens flow creates intrinsic utility and value for the protocol token. ANZ and veANZ adopt a similar model, applying veANZ mechanics to USDz staking yields and ANZ rewards. This utility drives demand for ANZ by aligning token holders with protocol growth, empowering them to direct rewards and capture value as the ecosystem grows.

The Role of veANZ Voting in Driving Protocol Growth

When a user locks ANZ on Anzen, they will receive veANZ. veANZ holders have a stake in governance, where they can vote on gauges that receive RWA yield (USDz reward) and ANZ yield (incentive tokens). These gauges allow for targeted incentives across a range of use cases:

• Liquidity Pools (LPs): By directing rewards to USDz-USDC or ANZ-USDC liquidity pools, veANZ holders can incentivize LPs to deposit liquidity, making USDz and ANZ more accessible and liquid.
• Staked USDz and USDz Bonds: veANZ holders can also allocate rewards toward Staked USDz or USDz bonds. The Staked USDz makes looping easier, while USDz bonds provide a steady stream of yield to veANZ holders.
• Upcoming Gauges for Advanced DeFi Uses: Future gauges will target lending/borrowing platforms, perpetual exchanges, and more. For instance, a gauge could be set up to reward USDC lenders in a protocol like Morpho, increasing liquidity for USDz on lending platforms and encouraging sophisticated DeFi users to leverage USDz as a collateral asset.

veANZ Voting

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.

Making USDz Portable and Versatile

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.

With the launch of ANZ and veANZ, USDz gains both flexibility and consistency. ANZ holders aren’t speculating on a governance token — they’re actively shaping a stablecoin ecosystem with meaningful yield opportunities and a resilient design. The more USDz integrates into DeFi, the more valuable the role of ANZ holders becomes, making ANZ a token that grows in value alongside the protocol.

Participate in the much-anticipated launchpad sale of ANZ on December 2nd.

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