Proposal to add ZUSDFRAXBP pool to the Gauge Controller


Proposal to add ZUSDFRAXBP Factory Pool to the Gauge Controller to further increase the presence of ZUSD in the Curve ecosystem.

References/Useful links:

  • Curve Pool Link
  • Pool Type: Factory pool FraxBP Metapool
  • Tokens: ZUSD and FraxBP LP
  • GMO Trust (ZUSD Issuer) Link
  • ZUSD Website Link
  • Twitter Link
  • Etherscan Link
  • Monthly Transparency Attestation Reports Link
  • Technical Audit Link
  • Whitepaper Link
  • Fee Schedule Link
  • Github Link

Protocol Description:

  • ZUSD is a fiat-backed stablecoin with 1:1 redeemability with a total supply of 16,132,265.
  • ZUSD is currently tradeable on these decentralized exchanges: Uniswap and Curve pools.
  • ZUSD engages market makers and trading desks such as Hudson River Trading, GSR, Keyrock, JST Digital, and Profluent.
  • GMO Trust Company is a subsidiary of GMO Internet Group, an Internet service industry leader, developing and operating Japan’s most widely used domain, hosting & cloud, e-commerce, security, and payment solutions. The Group also includes the world’s largest online FX trading platform, as well as online advertising, Internet media, and cryptocurrency-related services. GMO Internet Group, Inc. (TSE: 9449) is headquartered in Tokyo, Japan.
  • GMO Trust Company connects traditional finance and blockchain for everyone. We are issuing GYEN, the world’s first regulated Japanese YEN-pegged stablecoin, and ZUSD, the new digital dollar. Established in 2020, Trust Company was granted a limited-purpose trust charter by the New York State Department of Financial Services and is a subsidiary of the financial and IT conglomerate GMO Internet Group from Japan.


This pool needs incentivization because the DeFi ecosystem would greatly benefit from increased diversity of fiat-backed stablecoin options. There are effectively only three viable options: USDC, USDT, and USDP. Two out of the three are under the jurisdiction of the US, which poses real systematic risks in the current regulatory environment. Though ZUSD is incredibly thorough with its regulatory policy (with permits and licenses to operate and serve US customers), GMO Trust is firmly part of a Japanese company.


  1. Governance: ZUSD is managed by the board of directors and executive officers of GMO Trust. Information on these individuals could be found on the About Us page of the website.
  • GMO Trust is a subsidiary of GMO Internet Group, which is a publicly traded Japanese company that must adhere to disclosure and reporting laws.
  1. Oracles: No. The ZUSD stablecoin is 1:1 fiat-backed therefore the holders may redeem for par value at any time.
  • GMO Trust also employs numerous market makers to maintain the peg through market arbitrage when presented.
  1. Audits: Transparency and Attestation Audit Reports are available on the company’s website.
  • Beginning December 2022, Trust Company, Inc. (“GMO Trust” or the “Company”) has engaged WithumSmith+Brown, PC (“Withum”) to independently examine, on a monthly basis, that each of the custody accounts held at U.S. banks for both JPY and USD maintain fiat reserves to support a 1:1 ratio of both GYEN and ZUSD tokens, respectively. Withum performs month-end examinations of both the JPY and USD bank accounts using standards established by the AICPA.
  • Every monthly examination report that has been performed since the launch of GYEN and ZUSD.
  • Please see here for the Audit Link
  1. Centralization vectors: GMO Trust executive team and board of directors operate and manage ZUSD.
  • GMO Trust utilizes Fireblocks, Etana, Copper, Komainu/Ledger and Hex Trust for custody.
  • GMO Trust banks with FDIC-Insured U.S. Banks.
  1. Market History: ZUSD depegged during the moment when USDC depegged in March 2023. Since then ZUSD initiated more efforts to defend the peg. These actions include increasing relationships with existing market makers as well as engaging new ones and adding more liquidity on-chain to facilitate larger arbitrageurs. Please note that ZUSD is always 1:1 redeemable therefore this fact needs to be emphasized.
  • During the depeg, there were only roughly 1.5M ZUSD circulating supply. The Uniswap USDC / ZUSD pool at the time had less than $500k in TVL.
  • In May 2023, GMO Trust created the ZUSDFRAXBP Curve pool with $5M TVL.