Zunami Protocol

Zunami Protocol, also known by the alias zStables, is a decentralized finance protocol that focuses on stablecoin products and services. It issues two primary stablecoin offerings named Zunami Ether and Zunami USD, which are designed to maintain a peg to their respective underlying assets. The protocol integrates with Curve Finance to provide liquidity pools where users can swap these stablecoins and earn yields. Headquartered in the United States of America, Zunami Protocol operates within the broader DeFi ecosystem.

In August 2023, the protocol experienced a significant security incident when an attacker exploited a price manipulation vulnerability in its stablecoin pools on Curve Finance. The exploit resulted in an estimated loss of over two million dollars, prompting the team to advise users against purchasing Zunami Ether or Zunami USD stablecoins until the issue was resolved. This event brought considerable attention to the protocol and highlighted the risks associated with price oracle dependencies in DeFi platforms.

Zunami Protocol distinguishes itself by specializing in stablecoin liquidity provision and yield optimization on Curve Finance, leveraging automated strategies to generate returns for depositors. Its architecture is built around vaults that allocate funds across various Curve pools to capture trading fees and incentive rewards. The protocol’s focus on maintaining stablecoin pegs while offering yield positions it as a niche player within the stablecoin‑centric segment of decentralized finance. These attributes reflect its aim to provide users with relatively low‑risk exposure to stablecoin markets while still participating in DeFi yield generation.