Anzen Finance and USDz: New Opportunities in Stablecoins and DeFi

Anzen Finance @AnzenFinance is a project dedicated to promoting innovation in the decentralized finance (DeFi) ecosystem, launching the digitally-backed US dollar USDz, secured by real-world assets (RWA). In April this year, Anzen completed a $4 million seed funding round, with participants including Mechanism Capital, Circle Ventures, Frax, Arca, and other well-known institutions.

This funding will help Anzen accelerate the expansion of its ecosystem, especially in supporting cross-chain protocols, enabling more users to earn stable returns through DeFi protocols.

Core Advantages of the Project:

RWA Support: USDz is backed by a diversified set of institutional-grade private credit assets, sourced from partnerships with traditional financial (TradFi) institutions. The cash flows from these assets can effectively mitigate market volatility, providing users with more stable and sustained returns. Compared to traditional stablecoins, this offers higher security and yield potential.

Wide Support for DeFi Protocols: Anzen's core goal is to make USDz an efficient digital asset, providing liquidity not only on existing chains but also allowing staking, lending, and trading across multiple DeFi protocols. For example, USDz, alongside USDC, forms a popular liquidity pool on Base, where USDz holders can earn rewards.

Cross-Chain Expansion: Anzen currently supports multiple Layer 1 and Layer 2 networks, including Ethereum and Base, and through the LayerZero cross-chain protocol, it can further expand to more chains in the future.

Market and Competition:

With the continuous growth of the RWA market, the emergence of USDz fills a gap in the stablecoin market. In particular, the market cap of RWA-backed stablecoins has exceeded $9 billion, indicating a strong demand for stable, low-risk assets. As a standout player in this field, Anzen possesses a wide range of partners and strong technical support, making it poised to secure a place in the decentralized finance and stablecoin markets.

Moreover, Anzen's seed round funding demonstrates strong market confidence in the project. The involvement of well-known institutions such as Circle and Frax indicates a very optimistic outlook on the potential and prospects of USDz, providing robust financial support and trust backing for Anzen's long-term development.

Comparison with Other Stablecoins:

Currently, the most popular stablecoins in the market include USDC, USDT, and DAI, all of which play significant roles in decentralized finance. In contrast, the RWA support mechanism of USDz gives it advantages in both stability and yield, especially in times of high market volatility, where it can provide more stable returns. Traditional stablecoins like USDC, while having an important position in DeFi, primarily depend on the traditional financial system rather than decentralized assets, which limits their use in certain decentralized applications.

Personal Views and Expectations:

From my personal perspective, Anzen Finance's USDz is undoubtedly a project worth paying attention to. It not only addresses some of the issues faced by traditional stablecoins but also offers more possibilities within the decentralized finance ecosystem. With Anzen's expansion of cross-chain support and the integration of more DeFi protocols, USDz's market share as a stablecoin is likely to see significant growth in the coming years.

From an investment standpoint, the long-term potential of USDz is promising. As traditional financial markets become more accepting of decentralized finance and as more institutional funds flow into the DeFi market, USDz could become an important player in the stablecoin space. Particularly, its strong capital backing and solid technical foundation give me a very optimistic expectation for its future development.

In the current bull market performance, the project's current price is at the cost price of the IDO, and I suspect it aims to wash out some before announcing a CEX, which can be observed.

Data Sources:

dune: https://t.co/vxfySLTJFs

DeFiLlama: