syzUSD
$1.0834The staked, yield-bearing token of Yuzu Alpha — an ERC-4626 vault over yzUSD, a tranched overcollateralized dollar protected by a yzPP first-loss tranche and a disclosed Reserve Fund.
What is syzUSD?
syzUSD — Staked yzUSD — is the yield-bearing token of Yuzu Money’s Yuzu Alpha stack. The base token, yzUSD, is a senior stablecoin minted and redeemed 1:1 against USDT0 on Plasma by Eligible Investors, backed by a whitelisted collateral pool held in Fordefi MPC custody. Staking yzUSD issues syzUSD — an ERC-4626 vault share whose NAV accrues the pool’s yield through weekly epochs. Losses are absorbed first by the yzPP junior tranche, then a disclosed Reserve Fund, before any senior impact. syzUSD travels cross-chain as a Chainlink Cross-Chain Token (CCT) over CCIP — the destination set is enumerated from its token pool on-chain and shown in the Bridging section. yzUSD and yzPP have no live bridge lane (their LayerZero OFT deployments carry zero configured peers).
This report reads the Yuzu Alpha book as our engine measures it on-chain: the positions discovered across Yuzu’s NAV wallets — the strategies, the leverage inside them, the collateral they are exposed to, and the borrowers on the other side of each market — priced at each venue’s own oracle and set against the tranche supplies read on-chain. Yuzu’s proof-of-solvency on Accountable is linked alongside; from it come the posted syzUSD and yzPP APYs, the share of yzUSD staked into syzUSD, and the Reserve Fund balance.
Portfolio
How the collateral pool is composed and deployed — balance sheet, discovered positions, distribution, and wallets.
Balance Sheet
The backing this engine measures on-chain against the senior yzUSD claim, with the yzPP junior tranche standing behind it — both sides read on-chain.
- Leverage $50.33M 75%
- Vault Deposits $10.39M 16%
- LP $5.59M 8%
- Cash / Unallocated $280.43K 0%
- Fixed Yield $127.82K 0%
- yzUSD · senior claim $61.29M 100%
Positions
The on-chain book discovered from the disclosed NAV wallets, sectioned by NAV tranche — including the leverage loops inside each strategy.
“Senior backing (commingled)” below is the pooled tranche: each Main NAV wallet holds its own distinct positions, but the collateral is NOT segregated per tranche — it is one shared book standing behind the senior yzUSD/syzUSD claim. A loss anywhere in the pool draws on the common backing; the yzPP junior tranche and the disclosed Reserve Fund absorb losses first.
Distribution
Where the discovered book is deployed, by share of on-chain value.
- Monad 28.3%
- Robinhood 25.3%
- Ethereum 14.4%
- Base 12.2%
- Plasma 7.8%
- Other (5) 12.1%
- Morpho 41.8%
- Aave 36.8%
- Pendle 7.1%
- Other (12) 14.4%
Concentration
How concentrated the deployment is — across protocols, and across the assets backing the pool.
- Effective protocols How many equal-size protocols would match this concentration score (10,000 ÷ score). A lower count means more of the value sits with a few large protocols.
- 3.1
- Largest protocol
- Morpho · 41.8%
How the reserve's deployed value is spread across protocols — fewer venues holding more of the value pushes the score up.
- Effective assets How many equal-size assets would match this concentration score (10,000 ÷ score). A lower count means more of the value sits with a few large assets.
- 2.9
- Largest asset
- USDe · 55.2%
How the assets backing the reserve are distributed — heavier reliance on a single underlying pushes the score up.
Reading the gauges. Each gauge scores concentration: everything in one holding scores 10,000, ten equal holdings score 1,000. Shares are squared, so a few big positions dominate the score. The "effective" count is how many equal-sized holdings would score the same (10,000 ÷ score). The method is the Herfindahl–Hirschman Index (HHI); bands follow US antitrust thresholds:
- Below 1,500 diversified
- 1,500 – 2,500 moderately concentrated
- Above 2,500 highly concentrated
Portfolio Over Time
Cumulative discovered value, stacked by position. Hover a snapshot for the breakdown.
The dashed line is the outstanding claim. A book below it in the early history is the engine still catching up to the asset's on-chain positions — historical coverage, not under-collateralization — and closes as adapters land; it is only there in the asset's early days.
Wallets
The disclosed Fordefi NAV wallets holding the pool’s positions, with total holdings on each chain.
Exposure
What the discovered book is exposed to — collateral, asset flow, and the borrowers on the other side.
Collateral Exposure
On-chain exposure to each collateral asset, across every protocol and chain. Doesn’t include direct holdings or the unborrowed pool.
- Assets
- 20
- Chains
- 10
- Protocols
- 18
5.01% of the reserve is exposed to yzPrime
yzPrime (“Yuzu Prime”) is a first-party sibling RWA vault. On-chain it is a USDC-denominated ERC-4626 on Monad, but that USDC is deployed into an off-chain institutional RWA basket — so the underlying collateral is the basket, not the USDC it reports on-chain. A direct, unlevered holding of the reserve.
Asset Flow
From each underlying asset, through the positions holding it, to the collateral third-party borrowers post against it. That final column is where a default lands: the collateral that would have to clear for the reserve to be made whole.
- Lending book
- $16.4M excl. carry trade
- Share of book
- 24.56% rest is carry trade
- Lent to borrowers
- $5.9M third-party exposure
- Utilization
- 36.08% borrowed by third parties
- Positions
- 77
- Protocols
- 13
- Borrowers
- 153
75.44% of syzUSD positions are carry trades
A carry trade posts collateral to borrow a second asset, which adds a counterparty exposure on the debt side: the reserves it borrows from. That exposure is governed by who else borrows those reserves, the quality of the collateral they post against them, and the liquidity left to absorb an unwind — concentrated borrowing lifts utilization, compresses the carry, and can force an exit exactly when liquidity is thinnest. The measures below are live; a fuller treatment of the lender side follows.
- Carry-trade positions
- 29
- Gross exposure
- $466M
- Average leverage
- 9.3×
- Borrowed
- $416M
- Co-borrowers identified
- 63
Top Borrowers
The pool earns part of its yield by lending to these counterparties. Health factors near 1.0 are the early warning.
0x6142…73ab0xbc38…69130xc468…4ca60x7d2c…874e0xa9f8…f075
0x9f1a…bd1a0x5c43…d40e
0xd758…5fda0x278a…1daa0xab0d…c0ae0x815f…47480x24d2…4458
0x3573…fcab0x015c…23080x8933…f64a0xd6c7…fe9b0x1c48…0f600x4e89…bd520x86ab…13a00x05d4…353aConcentration
How concentrated the exposure is — across the collateral assets backing it, and across borrowing counterparties.
- Effective collaterals How many equal-size collaterals would match this concentration score (10,000 ÷ score). A lower count means more of the value sits with a few large collaterals.
- 2.7
- Largest collateral
- USDe · 57.4%
How the exposure is spread across the collateral assets borrowers post — heavier reliance on a single collateral pushes the score up.
- Borrowers
- 235
- Effective borrowers How many equal-size borrowers would match this concentration score (10,000 ÷ score). A lower count means more of the value sits with a few large borrowers.
- 10.7
- Largest position
- 24.9%
How the exposure is spread across borrowing counterparties. Pool-based protocols (e.g. Aave) can't be broken down per borrower, so an entire pool counts as a single position — the score likely overreports true counterparty concentration.
Gauge key. Scores are Herfindahl–Hirschman Index (HHI) concentration scores, explained under the Portfolio gauges in the previous section:
- Below 1,500 diversified
- 1,500 – 2,500 moderately concentrated
- Above 2,500 highly concentrated
Yield & Equity
How losses and yield are tranched: yzPP (junior) absorbs losses first, then the disclosed Reserve Fund, protecting senior yzUSD/syzUSD. Yield accrues to syzUSD through weekly epochs (Fri 04:00 UTC); no management or performance fee — a spread between earned and posted yield feeds the Reserve Fund and smooths the rate.
Tranche stack from the on-chain tranche reads (senior/junior) + the disclosed Reserve Fund · APYs as posted by the protocol
Mint / Redeem
Native mint and redeem run 1:1 against USDT0 on Plasma at NAV, gated to Eligible Investors (KYC/KYB via Sumsub, Chainalysis KYT): normal redemption settles within 3 days at no fee, instant redemption costs 0.3%. Separately, a permissioned Peg Stability Module offers zero-fee 1:1 atomic swaps against USDC liquidity to whitelisted money-market liquidators — the exit rail that removes DEX-depth dependence under stress. Mint/redeem, staking and yield accrual are independently pausable (Hypernative Sentinel auto-pause + SAFE 3-of-4 manual).
Yuzu DD package (30 Apr 2026) · PSM contract address not yet published — on-chain PSM liquidity read pending
Product fund flows (docs) yzUSD mint & redeem (docs) Liquidity buffer (docs)
Bridging
syzUSD is issued on Plasma and travels cross-chain as a Chainlink Cross-Chain Token (CCT), transported over Chainlink CCIP — Yuzu operates its own token pools (lock-release on Plasma, burn-mint on remotes) registered with the CCIP TokenAdminRegistry. The destination set below is read on-chain and sizes each lane by the remote syzUSD supply.
Destination chains
syzUSD minted on each CCIP lane (its on-chain totalSupply), valued at the syzUSD NAV.
Yuzu DD package §1 (Bridges) · gitbook Security Infrastructure → Chainlink CCIP Transporter Bridge
Listings
Markets that accept syzUSD as collateral, and the terms on which they list it. Spot liquidity is maintained on Curve and Pendle (yzUSD, Plasma) and Balancer V3 and Pendle (syzUSD, Plasma/Monad), with up to 5% of backing assets allocated to on-chain liquidity.
Due Diligence
Risk assessment across every dimension, extracted from the Yuzu DD package.
Mechanism
Tranched, overcollateralized design: yzPP junior first-loss + Reserve Fund absorb losses before senior yzUSD/syzUSD. Zero realized senior drawdowns since the 21 Oct 2025 mainnet launch; the KelpDAO (rsETH)/Aave negative-carry incident impacted only the junior tranche, senior fully intact & overcollateralized.
Smart Contract
Four audits across two tier-1 firms (Pashov ×2, Dedaub ×2, latest the Feb 2026 PSM audit). Hypernative Sentinel auto-pause; a 48h TimelockController + SAFE 3-of-4 govern upgrades, with a non-timelocked emergency pause. Dedaub flagged admin centralization — mitigated by the timelock and multisig. No live public bug bounty yet (on the roadmap).
Collateral is deployed only to whitelisted, best-in-class, audited, high-TVL venues and top-tier RWA issuers (BlackRock BUIDL via Securitize, Superstate, Centrifuge, WisdomTree, VanEck) — the lending venues actually in the book this capture are shown live in Distribution and Concentration. Hard guardrails — a $50M minimum strategy TVL, a 7-day whitelist activation window, and no rehypothecation, recursive borrowing or directional leverage — bound the exposure, and no senior drawdown has occurred since the October 2025 launch. The residual, and the DD’s single largest named dependency, is underlying strategy-venue risk: the funding-rate-arb and private-credit legs carry the genuine tail, monitored daily.
Market
Most leveraged positions use fundamental (NAV) oracles, removing market-driven liquidation — only prolonged negative carry could impair, monitored daily. Hard guardrails forbid directional leveraged trading, naked options, illiquid altcoins, rehypothecation, and recursive borrowing.
Oracle
Dual oracle: Redstone Fundamental feeds for yzUSD/syzUSD plus Chainlink pairs, with a stale-price revert guard and Hypernative deviation/anomaly monitoring.
Custody
Assets are held in institutional MPC custody under a multi-party signing policy — no single party ever holds a whole key, and every strategy execution settles on-chain with a minimum of two signers. Yuzu layers its own controls on top: per-strategy transaction policies whitelist exactly which protocols, contracts and destinations each wallet may touch, so even an approved signer cannot move funds outside the sanctioned set. The residual is operational rather than custodial — strategy selection remains a discretionary off-chain decision of the risk committee.
Transparency
Continuous, enclave-attested proof-of-solvency via Accountable (Merkle root, AMD-SEV attestation, zero-knowledge proofs of collateral & liabilities), a publicly disclosed Reserve Fund and Fordefi wallet roster, and a live collateralization ratio.