After some explanations from what looked like DZAR team, my conclusion about the discussion we had in bal-detectives channel on Discord is:
“DZAR tokens are backed by nothing. Buyers have no claims to Digital Rand (Pty) Ltd’s assets which own the deposits that you make to get DZAR. The DZAR peg to ZAR (fiat currency) is kept at voluntary efforts of Digital Rand (Pty) Ltd. and the pegging can be terminated at any point in time at discretion of Digital Rand (Pty) Ltd.”
DZAR can print unlimited amounts of tokens at their sole discretion.
DZAR gets pooled in many 8 asset pools. These pools are as safe as the weakest currency, DZAR going to 0 will drain these pools to 0. There are millions in these pools. If DZAR prints unlimited amount of tokens, it will drain all these pools, generate large losses and bad publicity.
I think that encouraging DZAR liquidity on Balancer creates a big risk for potential liquidity providers joining these pools.