yZAR: Frequently Asked Questions
Everything you need to know about Mesh.trade’s yield-bearing stablecoin.
In the fast-moving financial markets, where settlement is instant and opportunities move at lightning speed, holding non-earning cash balances is a drag on your portfolio (if you’re a private investor) and on your P&L (if you’re a company). Mesh’s yZAR stablecoin fixes that, providing a compliant, programmable cash layer that earns yield while still functioning as a medium of exchange.
Here’s a quick look at what yZAR does, how it does it, and what you need to know about it.
What is yZAR?
yZAR is a yield-bearing stablecoin pegged 1:1 to the South African Rand. It’s built on the same fully collateralised, audited framework as Mesh’s mZAR stablecoin, but it adds smart, daily-accruing yield on top.
How does the yield work?
yZAR accrues daily yield and compounds monthly. Yield is earned daily, and paid into your Mesh yZAR wallet monthly. Note that we use the term “yield”, and not “interest”. That’s because yZAR is not a bank deposit and it carries no deposit insurance.
What is the yield rate?
The rate is variable and is indexed to trusted South African money market instruments via appointed yield providers.
Is it liquid?
Yes. You can trade yZAR 24/7 on Mesh.trade (subject to network availability), with redemption/defunding available on business days. The transaction cut-off is 17:00 SAST; transfers after 17:00 reflect on the next business day. (Weekend settlement resumes on the next business day.)
When do I start to earn yield on yZAR?
If you hold yZAR at 23:59:59 SAST, you accrue yield for that day. Yield does not carry over if you don’t hold yZAR at the daily snapshot. The operational cut-off for minting or burning yZAR is 17:00 SAST. Any transactions initiated after 17:00 will reflect on the next business day.
When is yZAR yield paid?
Yield accrues daily, compounds monthly, and is paid into your Mesh yZAR wallet on the first business day of the following month.
Where can I get yZAR?
Mesh.trade users can easily swap mZAR for yZAR on the Mesh Marketplace.
Step 1: Ensure you have available mZAR for your purchase, or fund your Mesh wallet via a bank EFT or credit card payment.
Step 2: Navigate to yZAR on the Mesh Marketplace
Step 3: Buy yZAR with your available mZAR
Simple as that! There are no platform fees to swap between mZAR and yZAR, and you can swap back to mZAR at any time, with no fees.
Are there fees?
There is no platform fee for transfers from yZAR to mZAR or from mZAR to yZAR. Large fund/defund events may carry a 0.40% + VAT liquidity charge.
Can I use yZAR outside Mesh?
No. yZAR is native to Mesh. You can, however, convert your yZAR to mZAR and use our supported rails, pairs and integrations. CEX/DeFi listings may expand over time.
Is it safe?
yZAR is fully backed 1:1 by mZAR, which in turn is fully backed 1:1 by ZAR. That ZAR is held in a segregated, bankruptcy-remote, special purpose vehicle- (SPV) controlled account, being implemented via Mesh Mint (RF) (Pty) Ltd.
yZAR has institutional oversight through a bankruptcy-remote structure, monthly third-party audits, and FSP-licensed operations. The bankruptcy-remote structure will be effective upon completion of SPV governance appointments and the required registrations; until then, the reserves are maintained in segregated client accounts administered by Mesh Trade SA.
How would an individual investor use yZAR?
yZAR has several uses for private investors (both South African and diaspora). It provides daily yield on rainy-day funds and dry powder, and allows you to keep your emergency funds and remittance floats earning until you need them – with monthly third-party audits and compliant, transparent proof-of-reserves. yZAR also gives you direct control over your ZAR, with instant transfers between your spending capital (mZAR) and your earning reserves (yZAR).
What are yZAR’s benefits for professional investors?
yZAR enables wealth managers, fund managers and IFAs to add a yielding cash sleeve to their model portfolios with clean audit trails. It also provides treasury alpha, letting you put idle capital to work between deployments with programmatic sweeps. Using yZAR across escrow, issuance and desk-to-desk flows gives you better settlement cash, with full reporting in the form of statements, yield breakdowns and exportable ledgers.
How would issuers and corporates use yZAR?
Asset issuers and corporates can use yZAR to park their proceeds pre-deployment, while running auto-sweeps for their working capital. yZAR is a liquidity buffer that earns, allowing you to stage your capital pre-trade or pre-issuance without dead time.
Arbitrage desks and market makers, meanwhile, can stage their ZAR inventory with carry, settling instantly when the window opens. yZAR also allows SuperApps, Fintechs and centralised exchanges to offer yield-as-a-service to their users via Mesh APIs and whitelists.
DeFi-Adjacent users can use yZAR as programmable collateral and for settlement of cash on/off Mesh.
• For more information, view the yZAR asset page, or consult our support solutions.
Tags
Want to stay in the know on upcoming events and seminars?
Newsletter Sign Up
For more press information, please contact:
Connie Bloem, Product owner of Mesh:
hello@meshtrade.co / +1 604 671 4515