Stablecoins USDZ, AEDZ

The cryptocurrency industry is frequently criticized for price volatility which impedes the usage of utility tokens as a real-world currency. 
Stablecoins are cryptocurrencies backed by reserve assets for everyday use. They are designed to combine features such as instant processing, security, and privacy of blockchain technology, with the stability of reserve assets or leading Fiat currencies. 
AEDZ is the first stablecoin in the MENA region to be fully pegged to the UAE Dirham. USDZ is a stablecoin pegged to the US Dollar. 
Zamzam is developing these stablecoins as a universal solution for payments, remittance, banking, trading, and many other business applications.  
Emission of stablecoin within the zMorgan Protocol
Features
Price Stability: AEDZ and USDZ achieve their price stability via collateralization. 1 USDZ and 1 AEDZ will always be worth 1 USD and 1 AED respectively. 
Instant Processing: Stablecoin transactions are processed and settled inside the ecosystem in real-time.
Transparency. All collateral assets backing AEDZ and USDZ are deposited in escrow accounts with a real-time dashboard showing the value of collateralization and circulation of each so that our stablecoin collateral value is absolutely transparent to everyone.
Utility
Settlement medium
Cross-border remittance
Payments
Easy access to Crypto Capital Markets
Store of value
Banking: lending, borrowing, investment
Collateralization
Initially, USDZ and AEDZ will be collateralized with other stablecoins (BUSD, USDT). As the ecosystem develops, USD, AED, and other assets will be used as collateral in escrow accounts.
For every 1 USDZ minted, 1 BUSD or 1 USDT will be locked in the protocol as collateral. 
For Every 3.67 AEDZ minted, 1 BUSD or 1 USDT are locked in the protocol.
Minting
1.
zMorgan users deposit liquidity (BUSD or USDT) to the Ecosystem.
2.
Liquidity is locked in zMorgan pool.
3.
zMorgan Protocol mints equal value of USDZ to BUSD/USDT locked in the pool.
4.
For specific markets, AEDZ is minted instead of USDZ.
Burning
1.
Users make a market order to exchange USDZ with another asset.
2.
Exchange sends USDZ to zMorgan protocol
3.
zMorgan protocol unlocks BUSD from the pool (or USDT depending on the required pair for exchange)
Stablecoin as a Service
Stablecoin as a service is a universal solution for businesses and governments to quickly and efficiently issue their own stable cryptocurrency tied to a reserve asset or Fiat.
For companies: Businesses can release their own branded digital tokens to offer incentives for their customers, build customer loyalty and encourage money to be kept within their ecosystem.
For Governments: Central Banks can issue digital currencies (CBDC) that can be used as a digital national currency. With CBDC stablecoins, citizens retain access to the safest form of money - a claim on a central bank. This could promote diversity in payment options, make cross-border payments faster and cheaper, increase financial inclusion and facilitate fiscal transfers in times of economic crisis.
Stablecoins Use Cases
Demand and use of stablecoins is growing every day worldwide. Stablecoins have a huge potential for the financial sector.
Stablecoins $USDZ and $AEDZ issued by Zamzam are involved in the following use cases:
Stablecoins $USDZ and $AEDZ use cases
Bridge Between Fiat Money and Cryptocurrencies (CeFi via Binance)
Through ZamWallet, anyone can buy stablecoins $USDZ and $AEDZ with a bank card by transferring their fiat currencies (EUR, USD, AED etc.) to their wallet, then exchanging the fiat money for the equivalent amount of stablecoins.
Each stablecoin $USDZ is issued into circulation at a 1:1 value ratio with the US dollar and stablecoin $AEDZ is issued into circulation at a 1:1 value ratio with the UAE Dirham. Thus, stablecoins $USDZ and $AEDZ are fully pegged in a 1:1 ratio of fiat currency.
Stablecoins are issued to a user when the user transfers fiat funds through the ZamWallet via Binance centralized finance (CeFi) platform. Once confirmation of the transfer is established, an equivalent amount of stablecoins $USDZ and $AEDZ is minted (created) and transferred to the user. Deposited fiat funds are converted to stablecoins USDT, USDC, BUSD, then they are locked and stored on Binance.

Stablecoins are Issued in the DeFi via Smart-Contracts
Any user can also buy stablecoins $USDZ and $AEDZ for stablecoins USDT, USDC or BUSD.
After confirming that the stablecoins USDT, USDC or BUSD have been deposited, a smart-contract mints (creates) and allocates an equivalent amount of stablecoins to the user. Deposited USDT, USDC or BUSD are locked in the Zamzam smart-contract.
The process of redeeming stablecoins $USDZ and $AEDZ  works the other way around. A user transfers $USDZ and $AEDZ to a smart-contract, which automatically burns $USDZ and $AEDZ from circulation (destroys them), and transfers an equal amount of USDT, USDC or BUSD from the storage back to the user.

Trading
As stablecoins are pegged by fiat currencies, they have price stability. On a highly volatile cryptocurrency market, stablecoins are necessary for traders to protect the value of their holdings without the need to exchange their holdings for fiat money.
$USDZ and $AEDZ could be exchanged for cryptocurrencies within the Zamzam ecosystem or on other cryptocurrency exchanges.
According to CoinMarketCap.com, as of September 3rd, 2021, the market cap of all stablecoins was estimated at $121 billion with trading volume of $104 billion for the previous 24 hours. Trading volume of all cryptocurrencies for the previous 24 hours was estimated at $142 billion. This means that about 73% of all crypto trading transactions were made through stablecoins.
As of September 3rd, 2021
Payment and Remittances Instrument
Transactions and remittances in crypto represent unlimited transfers without intermediaries as banks and other payment systems. Therefore, payment and transfers in crypto are much faster, cheaper and easier. 
There is a growing number of companies all over the world which allow customers to pay with crypto for goods and services. Thus, according to a 2020 HSB survey, 36% of the small and medium-sized companies in the US accepted cryptocurrency as a payment. 
As digital currencies can be transferred all around the world at a faster speed and at lower costs, individual users and businesses have huge advantages by using crypto transfers and  remittances. However, transactions and remittances in volatile cryptocurrencies (such as Bitcoin, Ethereum etc.) have the risk of reduced transaction amounts if the value of crypto declines. By making payments and remittances in stablecoins, users avoid this risk and make transactions with confidence that their recipient will receive the amount they intended to send.
Thus, within the Zamzam ecosystem the users can make transfers and pay for Zamzam services (including zMorgan interest) in stablecoins $USDZ and $AEDZ.
Also with DeFi development more online applications, stores, restaurants and other services would be able to accept payment in crypto, specifically in stablecoins.

Banking
As a large percentage of the global population do not have access to banking services, stablecoins provide an accessible financial platform for everyone. 
Thus, according to the latest World Bank Group’s report, 1.7 billion adults are unbanked globally. That represents about one-fourth of the global population. 
According to the Statista data, in 2021 the country with the largest share of the population without access to the services of banks or similar organizations is Morocco, with a share of unbanked individuals in the amount of 71% of the population. In Turkey and Russia unbanked individuals represent 31% and 24% of the population respectively.
Stablecoins also represent stable money for countries with highly volatile national currency.
By using the Zamzam ecosystem, individual users and businesses have full access to their funds, immediate and low fee payments and remittances, and other financial services daily 24/7. 
Crypto banking provides users transparency, trust and security into their finance operations that currently tends to replace traditional banking systems.

Lending (Access to Yield)
Lenders can generate yield on their holdings in stablecoins (USDT, USDC or BUSD).
According to DeFi Pulse analytics, as of 6 September 2021 total value locked in lending was $50 billion. For last year total value locked in lending experienced a great growth of about 300%, from $12.4 billion as of 6 September 2020.
We attract lenders to deposit their stablecoins USDT, USDC or BUSD by offering attractive lending conditions (higher interest rate for $ZAM staking holders).
Lenders can deposit stablecoins (USDT, USDC or BUSD) and fiat money (USD, EUR, AED etc.). The fiat money would be converted to stablecoins (USDT, USDC, BUSD), then these stablecoins are locked by smart-contracts.
Thus, stablecoins (USDT, USDC or BUSD) and fiat money (USD, EUR, AED etc.) that were deposited by the lenders would provide a Liquidity Pool for $USDZ and $AEDZ within the zMorgan Protocol.
Example:
When a Lender 1 deposits $7,000 in fiat money and a Lender 2 deposits €2,524 in fiat money (is equivalent to about $3,000), zMorgan Protocol exchanges fiat money is converted to stablecoins 10,000 USDT and locks these stablecoins as a Liquidity Pool.
Therefore, when a Borrower exchanges a received loan in stablecoins $USDZ and $AEDZ for crypto or fiat money, there would be required liquidity on the free market.

Borrowing (Access to the Capital in Stablecoins)
Zamzam offers an opportunity for investors who own a securities portfolio and want to reinvest it without selling it.
A Borrower can receive a loan in stablecoins $USDZ and $AEDZ by pledging his securities portfolio as collateral.
When a Borrower deposits a securities portfolio collateral, the zMorgan Protocol locks the collateral and mints a suitable number of stablecoins $USDZ or $AEDZ (50% of securities value). The Borrower receives these stablecoins as a loan. Then, thanks to the locked Liquidity Pool, the Borrower can exchange received loans in $USDZ or $AEDZ for fiat money or crypto.
Example:
When the Borrower deposits a collateral valued at $20,000, he/she receives a loan in the amount of 10,000 USDZ (is equivalent to $10,000). The Borrower can exchange these 10,000 USDZ for $10,000 in fiat or crypto through ZamEx by using Liquidity Pool.
Conversion of Securities Portfolio to Stablecoins
If the value of a pledged securities goes below a certain threshold, a Borrower has to pay back a part of a loan in $USDZ and $AEDZ or deposit more securities portfolio as a collateral.
In our goals to help borrowers to avoid a liquidation on a falling market. Additionally, we offer borrowers the opportunity of manual or automatic conversion of securities portfolios to stablecoins (USDT, USDC or BUSD) partly or in full amount. In this case, a Borrower does not need to deposit extra collateral or pay back a part of a loan.
Example:
For instance, at the moment of a loan issuance a securities collateral is valued at $10,000. If a securities market experiences a constant price decline, a Borrower can convert the collateral to stablecoins USDT any time or set up an automatic conversion to stablecoins USDT, for example, at the level of 65% of a securities collateral value at the moment of a loan issuance, therefore, in the amount of $6,500. Thus, if the collateral value continues to fall down to $5,500 (the liquidation value), a Borrower will not be liquidated.
The conversion helps borrowers to set up LTV (Loan-to-value) on a certain permissible level, and, hence, to prevent their losses and liquidations, and get more time for making better strategic decisions on a falling stock market.