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.
I don’t think we should encourage large amounts of DZAR liquidity on Balancer