Stable Value, Uncompromising Freedom - For Anyone, Anywhere

fUSD is backed by far more value than it issues. Each fUSD token (worth $1) is supported by a reserve of the cryptocurrency ZANO. At launch, fUSD was backed by a significant surplus of ZANO reserves—far exceeding the value of tokens issued. This large surplus of collateral acts as a safety buffer, ensuring that even if conditions change, every fUSD remains securely backed. And this isn't just a claim; it's transparent and verifiable. All reserve wallets are public, so anyone can check the blockchain to confirm that fUSD's collateral far exceeds what's needed.

Because fUSD is overcollateralized with ZANO, the dollar value of its backing tends to increase as network usage and ZANO adoption grow. When ZANO appreciates, the same on-chain reserve covers more fUSD, automatically raising the coverage ratio without any action required. In addition, protocol operations such as spreads, liquidations, and redemption flows can accumulate surplus collateral over time, further strengthening the buffer. This natural growth compounds safety for holders while keeping issuance disciplined.

The peg is maintained through open‑market incentives rather than a central treasury. If fUSD trades above $1, arbitrageurs are incentivized to mint/sell fUSD until the price returns toward $1. If it trades below $1, they can buy fUSD cheaply and redeem or swap it through the protocol near $1, capturing the spread. Distributed market makers and users perform this balancing continuously, keeping the price anchored with no single point of control.

Deep overcollateralization provides a cushion when ZANO’s market price declines. As the coverage ratio tightens, incentives favor buying fUSD and retiring supply, while at‑risk positions can be liquidated to restore solvency. These mechanisms reduce circulating fUSD during stress and redirect value back to reserves, helping the system remain healthy through volatility.

All reserve addresses and core contracts are public, so anyone can verify balances and the coverage ratio directly on‑chain. There are no custodial accounts or opaque attestations—only auditable data and open‑source code. This transparency, combined with decentralization, removes the need for trust in any single party.

fUSD relies on protocol rules and a distributed set of participants—not a company—to keep value near $1. No administrator can freeze funds or arbitrarily change balances. Market‑based incentives, overcollateralized design, and community‑operated infrastructure work together to maintain stability while preserving user sovereignty.