# What is Usual? ## A community-owned stablecoin issuer Usual is a **secure, decentralized fiat stablecoin issuer** that **redistributes ownership, governance, and value** to its community through the **USUAL** token. Usual addresses a core imbalance in today’s stablecoin market: users supply the capital that generates billions in revenue, but they typically receive none of it. Usual reverses that model **100% of the value generated flows back to the community**. ## How Usual works 1. **Aggregate tokenized Real-World Assets (RWAs)**\ Usual sources tokenized RWAs, primarily **US Treasury Bills,** from leading institutional providers such as **Hashnote, M0, and Superstate**. These assets back a permissionless stablecoin called **USD0** that is **on-chain verifiable** and **composable across DeFi**. 2. **Redistribute ownership and protocol value**\ Usual is designed so that the people who deposit capital into a stablecoin can also **own the issuer and benefit from its economics**. For comparison, Tether generated over **$6 billion** in profit in 2023 without sharing revenue with users. Usual instead routes protocol revenue to the community, **100% of the value generated**. ## Why Usual exists Traditional stablecoin issuers such as **Tether (USDT)** and **Circle (USDC)** invest user deposits into Treasury Bills and other yield-bearing instruments and capture **100% of the revenue**. Together, they generated more than **$10 billion in revenue in 2023**, with combined valuations exceeding **$200 billion,** none of which was shared with the users whose capital enabled it. | Model | Who earns the revenue | User share | | ---------------- | ---------------------------------------- | ---------- | | Tether (USDT) | Tether Limited | **0%** | | Circle (USDC) | Circle | **0%** | | **Usual (USD0)** | **Locked USUALx holders + DAO treasury** | **100%** | Usual was built to change this. By combining **Treasury-backed collateral**, **DeFi composability**, and **community ownership**, Usual aims to create a stablecoin that works *for* its users—not just *with* their money. ## Product suite Usual includes a set of products, each with a distinct role in the ecosystem: | Product | What it does | | ---------- | ----------------------------------------------------------------------------------------------------------------------- | | **USD0** | The core stablecoin, fully backed by **US Treasury Bills**, usable for payments, trading, and collateral across DeFi | | **EUR0** | The euro stablecoin, fully backed by **EU** Treasury Bonds, usable for payments, trading, and collateral across DeFi | | **USUAL** | Governance and ownership token—represents **100% of protocol revenue rights**, distributed daily to active participants | | **USUALx** | Staked USUAL, earns **22% of all daily USUAL emissions** and qualifies for **weekly protocol revenue distributions.** | Additional products in development include yield product like sUSD0, bUSD0, or **ETH0** (ETH-denominated product), and **USD0a** (a delta-neutral yield strategy). ## Key differentiators ### Real-time, on-chain collateral Unlike stablecoins backed by opaque bank deposits or periodic attestations, USD0’s collateral is **fully on-chain and verifiable in real time**. Anyone can audit reserves at any moment, without relying on third-party attestors. ### Limited bank exposure By primarily holding **short-dated US Treasury Bills** and secured repo / reverse-repo rather than relying on large commercial-bank deposits, Usual aims to reduce the reserve risk highlighted during the USDC depeg via the Silicon Valley Bank collapse in March 2023. These structures can still include modest cash buffers at banking partners, so some residual counterparty risk may remain. ### Community governance The community governs critical protocol decisions, including: * which collateral assets are accepted * how the treasury is managed * how protocol parameters are adjusted This ensures Usual evolves according to user interests rather than corporate directives. ### Multi-chain availability USD0 and USUAL are deployed across **Ethereum, Arbitrum, Base, and BNB Chain**, with cross-chain infrastructure powered by **Chainlink CCIP** and **LayerZero** to support unified liquidity across networks. ## Architecture at a glance Usual is organized into two protocol layers: 1. **Usual Collateral Bridge Infrastructure:** The foundational layer for **USD0 minting, redemption, and collateral management**. UCBI connects **permissioned participants** (institutions providing RWA collateral) with **permissionless users** (anyone who wants to mint or hold USD0). 2. **Product Offerings Layer:** Built on top of UCBI, this layer powers **yield products** (bUSD0, sUSD0), **staking** (USUALx), **governance**, and **DeFi integrations** across lending, DEX, and yield protocols. ## Protocol overview | Metric | Detail | | ---------------------- | -------------------------------------------------------------------------------- | | **Founded** | 2022, France | | **Total funding** | $17M (Seed $7M + Series A $10M) | | **Investors** | Binance Labs, Kraken Ventures, Galaxy Digital, IOSG Ventures, OKX Ventures | | **Chains** | Ethereum, Arbitrum, Base, BNB Chain | | **Collateral** | US Treasury Bills (**Hashnote USYC** primary) | | **Token distribution** | 100% community to USUAL holders | | **Revenue Switch** | Activated January 13, 2025 | | **Audits** | 20+ audits by Cantina, Sherlock, Spearbit, Halborn, Hexens, Paladin, Blackthorne | # Why Usual? Usual is built on three key observations: 1. **Stablecoin issuers capture the upside.** Tether and Circle generated **over $10 billion in revenue in 2023**, with combined valuations exceeding **$200 billion**—yet none of this value is shared with the users who supply the deposits that make it possible. 2. **RWAs are on-chain, but not broadly used in DeFi.** Real-World Assets (RWAs) are growing on-chain, but integration into DeFi remains limited. Despite **billions in tokenized US Treasury Bills** now existing on-chain, **few wallets hold tokenized RWAs on Ethereum mainnet**. 3. **DeFi users want more than yield.** Traditional yield-only models do not reward early participants for taking higher risk. Users increasingly want exposure to the success of the projects they support. **Usual offers both yield and growth exposure.** Crypto needs fiat-backed stablecoins that is fully on-chain and supported by infrastructure designed for **neutrality, transparency, and security,** without concentrating all economic upside in a single company. Usual introduces a model that rebuilds the stablecoin issuer **fully on-chain**, where the issuer is controlled by holders of the **USUAL** governance token. Token holders participate in decisions about **risk policies, collateral composition, and liquidity incentive strategies**. *** ## Put an End to the Privatization of Profits Tether and Circle generated over **$10 billion in revenue in 2023**, with valuations exceeding **$200 billion**. Yet none of this wealth is shared with the users who make it possible. These companies invest user deposits, primarily in **US Treasury Bills,** and keep **100% of the yield** for shareholders. Usual is designed as a credible alternative. Where centralized stablecoin issuers **privatize profits** from customer deposits while **socializing losses** (as seen during the Silicon Valley Bank crisis, when USDC depegged to **\~$0.95**), Usual redistributes value back to the community. Major fiat-backed stablecoins are often operated by centralized actors that replicate problematic structures from traditional banking—structures that fundamentally contradict the principles of decentralized finance. ### How Usual is different Usual’s goal is to make users the owners of the protocol’s **infrastructure, treasury, and governance** through the **USUAL** governance token: * **100% of the protocol’s value** is distributed to the USUAL holder and community. * Revenue flows from real-world yield on **US Treasury Bill** collateral, creating **sustainable, non-inflationary cash flows** that back the token’s value. USUAL is distributed to users and third parties who contribute value—realigning incentives and returning power to ecosystem participants. > **Fair value distribution:** Usual aims to build a fairer financial system where the value generated by user deposits is shared across participants, rather than concentrated among private shareholders. *** ## Revolutionizing Stablecoin Ownership & Growth Exposure Traditional stablecoins like Tether retain all revenues for shareholders. Yield-bearing stablecoins may redistribute yield, but often through permissioned mechanisms—and typically **do not provide growth exposure**. Usual takes a different approach: **it gives users both yield and growth exposure**. ### How it works Usual aggregates the yield generated by the collateral backing its stablecoins (**USD0, EUR0**) into the protocol’s treasury. * **Revenue Switch:** Protocol revenue (from T-Bill yield) is distributed **weekly in USD0** to stakers who lock USUAL as **USUALx**, providing **real yield** denominated in stablecoins. Together, these mechanisms give holders both: * **Immediate income** (yield), and * **Long-term upside** (growth exposure tied to protocol adoption). ### Key features of Usual’s model #### Ownership and revenue sharing * **Treasury allocation:** 70% of protocol revenues flow into the treasury which is governed by USUAL holders, and **30% of these revenues** is directly distributed via the locked USUAL governance token. * **Real cash flow:** The token is backed by actual protocol revenues, approximately **\~$6 million per year,** generated from **US Treasury Bill** yields, products fees, not speculative emissions. #### Governance rights * USUAL holders influence key decisions, including revenue redistribution strategies, collateral management, risk policies, and onboarding new asset types. * Governance is executed through **on-chain voting** via the **Usual DAO**, ensuring transparency and immutability of decisions. #### Utility rights * USUAL **enables staking via USUAL**x, granting access to **Usual’s distributions.** * USUALx **enables a locking mechanism**, granting **access to revenue distribution** (weekly USD0 distributions). ### Why Usual stands out | Feature | Tether (USDT) | Circle (USDC) | **Usual (USD0)** | | ----------------------- | ----------------- | -------------------- | ------------------------- | | Revenue to users | 0% | 0% | **Yield + ownership** | | Governance | Corporate | Corporate | **Community-driven DAO** | | Collateral transparency | Quarterly reports | Monthly attestations | **Real-time on-chain** | | Bank risk exposure | Partial | Yes (SVB event) | **None (T-Bills only)** | | Growth exposure | None | None | **Yes (via USUAL token)** | Usual’s model goes beyond revenue redistribution, it redistributes **ownership**. Early adopters who contribute liquidity and activity are rewarded not only with yield, but with a meaningful, growing stake in the protocol’s future. Through transparent, on-chain token distribution and governance, Usual is built for sustainable growth and decentralized control. > **Become an owner:** Many models claim to be redistributive but fail to create long-term value. Usual goes beyond redistributing protocol revenues, it redistributes ownership of the protocol itself. USUAL holders make decisions about the protocol’s treasury, collateral strategy, and product roadmap. In other words: **what if the people who deposit into a stablecoin also owned the stablecoin issuer and earned its profits?** # FAQ Common questions about Usual Protocol—answered clearly and concisely. *** ## General Questions
What is Usual Protocol? Usual is a **secure, decentralized fiat stablecoin issuer** that redistributes ownership and governance to its community through the USUAL token. The protocol aggregates tokenized **Real-World Assets (RWAs)**—primarily US Treasury Bills—from leading institutional providers and converts them into **permissionless, on-chain verifiable, composable** stablecoins. Unlike traditional stablecoin issuers (e.g., Tether, Circle) that capture 100% of the yield generated from user deposits, Usual redistributes **100% of protocol value back to the community** — 30% to locked USUALx holders (weekly USD0 distributions) and 70% to the DAO treasury.
Why Usual? Usual is built to address core issues in today’s stablecoin model: 1. **Revenue redistribution** — Tether and Circle generated over $10B in combined revenue in 2023 without sharing it with the users providing liquidity. Usual reverses this dynamic by distributing the majority of value to the community through the USUAL token. 2. **Transparent collateral** — USD0 is backed by on-chain verifiable US Treasury Bills. No opaque bank deposits and no periodic attestations—anyone can audit reserves in real time. 3. **No bank risk** — By using Treasury Bills instead of commercial bank deposits, Usual avoids the counterparty risk highlighted by the March 2023 Silicon Valley Bank collapse, when USDC depegged to \~$0.95. 4. **Community ownership** — USUAL token holders govern the protocol, control the treasury, and vote on collateral decisions. Users aren’t just customers—they’re owners. 5. **Scalability** — USD0 is backed by the deep, liquid T-Bill market, enabling scale beyond the constraints of crypto-collateralized designs.
Which blockchains is Usual deployed on? Usual is deployed on **Ethereum** (primary chain), **Arbitrum**, **Base**, and **BNB Chain**. Cross-chain interoperability is powered by **Chainlink CCIP** and **LayerZero**, enabling token transfers and unified liquidity across supported networks.
Have Usual’s contracts been audited? Yes. Usual’s smart contracts have undergone **20+ audits** by leading security firms, including Cantina, Sherlock, Spearbit, Halborn, Hexens, and Paladin. Audit reports are [publicly available](https://tech.usual.money/security-and-audits/audits). Usual also operates an active bug bounty program.
How can Usual scale? Usual’s scalability is driven by: * **Deep collateral market** — US Treasury Bills are among the most liquid assets globally, with trillions outstanding. USD0 can scale with this market. * **Multi-collateral architecture** — The Multi Collateral Controller dynamically manages and diversifies collateral across multiple RWA providers (Hashnote, M0, Superstate, and others). * **Multi-chain deployment** — USD0 and USUAL are available on Ethereum, Arbitrum, Base, and BNB Chain. * **Composability** — USD0 and bUSD0 integrate with major DeFi protocols (Curve, Morpho, Pendle, Aave, Fira), expanding utility and distribution.
How does Usual secure and protect my deposit? Deposits are protected through multiple layers: * **Full collateralization** — Every USD0 is backed 1:1. No fractional reserves and no leverage. * **Audited smart contracts** — 20+ audits, plus an active bug bounty program. * **Institutional-grade custody** — Collateral is custodied by institutions such as BNY Mellon. * **On-chain verifiability** — Reserve composition is visible on-chain in real time, without reliance on third-party attestations. * **Insurance fund** — Funded from a portion of collateral yield to hedge potential collateral value loss. * **No bank exposure** — The protocol avoids commercial bank deposit risk.
*** ## How Usual Protocol Works
How does Usual Protocol work? At a high level, Usual works in three steps: 1. **Deposit** — Deposit USDC or eligible tokenized RWAs (e.g., Hashnote’s USYC) to receive **USD0**, the protocol’s stablecoin. 2. **Earn** — Lock USD0 into **bUSD0** (the liquid bond token) to earn yield via daily USUAL rewards, or deposit into **sUSD0** for a savings-style product. 3. **Govern & stake** — Stake USUAL as **USUALx** to earn a share of protocol revenue (distributed weekly in USD0) and participate in governance. Yield is generated from the T-Bill collateral backing USD0—real revenue from real assets (not token emissions alone).
What is USD0? **USD0** is Usual’s core stablecoin: a permissionless, USD-pegged **Liquid Deposit Token (LDT)** backed 1:1 by US Treasury Bills and repurchase agreements. It is designed for payments, trading, and use as collateral across DeFi. Key properties: * **1:1 USD peg**, supported by full collateralization and arbitrage mechanisms * **On-chain verifiable reserves**, with no reliance on monthly attestations * **Permissionless**, with open minting, redemption, and usage * **Composable**, integrating across Curve, Morpho, Aave, Pendle, and more * **Multi-chain**, available on Ethereum, Arbitrum, Base, and BNB Chain
What is bUSD0 (formerly USD0++)? **bUSD0** (bonded USD0, formerly USD0++) is Usual’s liquid bond token. Locking USD0 into bUSD0 creates a transferable, yield-bearing position that earns **daily USUAL** rewards. Key properties: * **Maturity:** June 11, 2028 — each bUSD0 becomes redeemable 1:1 for USD0 * **Liquid:** tradeable on secondary markets before maturity * **Two-token minting:** depositing 1 USD0 produces **1 bUSD0** (bond) + **1 rt-bUSD0** (early-exit right) * **Yield:** daily USUAL “coupon” payments * **DeFi composable:** usable as collateral (e.g., Morpho) and yield-tradeable (e.g., Pendle)
What is the USUAL token? **USUAL** is the protocol’s governance and revenue-sharing token. It represents ownership of **100% of protocol revenue** and is designed around cash flows from T-Bill yield. Key properties: * **Revenue-backed** — tied to real cash flows, not speculation alone * **Governance** — votes on parameters, collateral types, and treasury management * **Yield access** — stake as **USUALx** to receive weekly USD0 revenue distributions * **Community-first** — **100% of protocol revenue** flows to the community (30% to locked USUALx, 70% to DAO treasury) Supply cap: **3B USUAL**, projected to be fully distributed by **June 2028**.
*** ## USD0 — Fiat USD Stablecoin
What is USD0? USD0 is a stablecoin backed 1:1 by Real-World Assets (primarily US Treasury Bills). It provides a stable, transferable asset that is independent of traditional banking systems and usable across DeFi. **Use cases:** payments, trading, DeFi collateral, yield generation (via bUSD0 or sUSD0), and cross-chain value transfer.
Why choose USD0 over other stablecoins? | Feature | USD0 | USDC | USDT | | ---------------------- | -------------------------------------------------------- | -------------------------- | ----------------- | | **Collateral** | US Treasury Bills (on-chain) | Bank deposits + Treasuries | Mixed reserves | | **Transparency** | Real-time on-chain verification | Monthly attestations | Quarterly reports | | **Revenue sharing** | 100% to community (30% locked USUALx + 70% DAO treasury) | None | None | | **Bank risk** | None | Yes (SVB exposure in 2023) | Partial | | **Governance** | Community-driven | Corporate | Corporate | | **Capital efficiency** | 100% (1:1 mint/redeem) | N/A | N/A | USD0 provides **real-time reserve transparency**, eliminates bank counterparty risk, and redistributes value to the users who make the system possible.
How do I mint USD0? You can mint USD0 in two ways: 1. **With USDC (most common)** — Deposit USDC via the Usual dApp. A Collateral Provider matches your deposit with eligible RWA collateral, and you receive USD0. 2. **With eligible RWAs** — Deposit tokenized Treasury Bill assets (e.g., USYC, M, or USTBL) for a 1:1 USD0 mint. The dApp automatically routes orders to the best available execution—either via the primary minting engine or via secondary markets (e.g., Curve pools). > **Note:** In the current phase, orders below **100,000 USD0** are typically routed to secondary markets (DEXs) for efficiency.
How do I redeem USD0? USD0 is redeemable 24/7 at a **1:1 rate** (1 USD0 = $1 of collateral) via: 1. **Primary redemption** — Redeem USD0 through the protocol’s DaoCollateral contract for underlying tokenized Treasury Bills. You can then redeem those assets with RWA partners for other stablecoins or fiat. 2. **Secondary market** — Sell USD0 for USDC or other stablecoins on DEXs (Curve, Uniswap, aggregators) for immediate liquidity. > **Note:** Direct collateral redemption may require registration with the issuing RWA partner.
What backs USD0? USD0 is backed by short-duration, high-quality assets under Usual’s strict risk policy: * **Primary collateral:** Hashnote USYC — a tokenized fund investing in reverse repos and US Government securities, custodied by BNY Mellon * **Additional collateral:** M by M0, USTBL by Superstate, and USDC (for indirect minting) * **Risk requirements:** fully collateralized (no leverage), invested in liquid Treasury Bills, on-chain verifiable, and with portfolio duration below \~4 months Usual maintains **zero tolerance** for credit risk (no corporate debt) and FX risk (USD-only or fully hedged assets).
What sets USD0 apart as a high-quality stablecoin? USD0 stands out through: * **Real-time, on-chain transparency** — reserves can be verified at any time * **Full collateralization** with US Treasuries — no fractional reserves * **Community governance** over collateral and risk parameters * **Revenue redistribution** — collateral yield flows back to the community, not a corporation * **Isolated collateral** — backing assets are ring-fenced from custodians’ and tokenizers’ balance sheets for stronger bankruptcy protection
Where can I buy USD0? USD0 is available via: * **DEXs** — Curve, Uniswap, and other DEXs on Ethereum, Arbitrum, Base, and BNB Chain * **Direct minting** — through the [Usual dApp](https://app.usual.money) using USDC or eligible RWA collateral * **CEXs** — check current listings for availability
What can I do with USD0? You can use USD0 to: 1. **Store value** — stable exposure with transparent, Treasury-backed collateral 2. **Provide liquidity** — supply USD0 to DEX pools (e.g., Curve) to earn fees and USUAL rewards 3. **Earn yield** — lock into **bUSD0** for daily USUAL rewards, or deposit into **sUSD0** 4. **Use as collateral** — borrow against USD0 on protocols like Morpho and Aave 5. **Trade** — use USD0 as a DeFi base asset 6. **Bridge cross-chain** — move USD0 across Ethereum, Arbitrum, Base, and BNB Chain
*** ## bUSD0 — Liquid Bond Token
What is bUSD0? bUSD0 is the liquid bond version of USD0. By locking USD0, you receive a transferable, yield-bearing token that earns daily USUAL rewards while remaining tradeable on secondary markets. You can think of bUSD0 as an **enhanced T-Bill**: you gain exposure to Treasury-backed yield (via USUAL rewards) while maintaining liquidity through secondary markets. > **Legacy note:** bUSD0 was originally called USD0++. Under governance proposal UIP-12, it was renamed to **bUSD0 (bonded USD0)**. All USD0++ holders were automatically migrated, no action required.
How does bUSD0 work? Locking USD0 through the Usual dApp mints two tokens: ``` 1 USD0 → 1 bUSD0 + 1 rt-bUSD0 ``` * **bUSD0** — the locked, yield-bearing position. It is transferable and DeFi-compatible. * **rt-bUSD0** — the early-exit right. It is required (together with bUSD0) to redeem USD0 before maturity. **At maturity (June 11, 2028):**\ Each bUSD0 is redeemable **1:1 for USD0**, with no additional tokens required. **Before maturity:**\ To redeem via the primary mechanism, you must recombine: ``` 1 bUSD0 + 1 rt-bUSD0 → 1 USD0 ```
What yield does bUSD0 earn? bUSD0 holders earn **daily USUAL token coupons**, distributed automatically. Yield is funded by the underlying T-Bill collateral backing USD0. * Daily USUAL rewards. Returns vary with the market price of USUAL and may exceed traditional T-Bill yields. USUAL rewards accrue daily and can be claimed at any time. Unclaimed rewards continue accumulating.
Do I earn yield if I buy bUSD0 on the secondary market? Yes. Whether you mint bUSD0 or buy it on the secondary market, you begin earning USUAL rewards as soon as you hold the token. Rewards accrue daily and can be claimed at any time.
What is the maturity date for bUSD0? The current bUSD0 series matures on **June 11, 2028**. At maturity, **1 bUSD0 = 1 USD0**. Before maturity, bUSD0 can be traded at its market price on secondary markets.
How can I exit my bUSD0 position before maturity? You can exit early in several ways: | Method | How it works | Value received | | -------------------------------------- | --------------------------------------------------- | ------------------------------ | | **Recombine on the primary market** | Present **1 bUSD0 + 1 rt-bUSD0** | **Exactly 1 USD0** | | **Sell bUSD0 on the secondary market** | Trade on DEXs (Curve, etc.) | Market price (may be below $1) | | **Sell rt-bUSD0 separately** | Sell the early-exit right; keep bUSD0 and its yield | Market price of rt-bUSD0 | | **Hold to maturity** | Wait until June 2028 | **1 USD0** (guaranteed) | The DAO also sets a **floor price** for primary-market early redemption (currently **$0.92**), which supports a price floor for bUSD0 in secondary markets.
What are the risks of holding bUSD0? Because bUSD0 is a locked token, it does not have a cost-free open arbitrage mechanism that keeps it tightly pegged to $1 at all times. As a result, its secondary-market price can trade below par before maturity. Mitigations include: * **Secondary market liquidity**, supported by LP incentives and concentrated liquidity strategies * **Early-exit mechanisms**, including floor-price redemption and the rt-bUSD0 recombination design * **Parity Arbitrage Right (PAR)** — in extreme scenarios, the DAO can unlock underlying USD0 from bUSD0 at 1:1 to restore the peg * **DeFi composability** — bUSD0 can be used as collateral or leveraged via the Usual Stability Loan mechanism At maturity, **1 bUSD0 always redeems for 1 USD0**. Price risk primarily affects early exits.
What happens if I don’t claim my USUAL rewards? Unclaimed USUAL rewards continue accruing and remain claimable at any time. They do not expire.
*** ## USUAL Token & Governance
What is the USUAL token? USUAL is the governance and revenue-sharing token of Usual Protocol. It functions as: * **Governance** — vote on protocol parameters, collateral types, and treasury management * **Revenue claim** — stake as **USUALx** to receive weekly protocol revenue distributions in USD0 * **Incentives** — distributed daily to bUSD0 holders, liquidity providers, and other active participants * **Disinflationary emissions** — fewer tokens emitted per $ of TVL as the protocol grows USUAL is designed to be different from typical governance tokens because its economics are anchored by **real cash flows** from T-Bill yield.
How can I earn USUAL tokens? You can earn USUAL by: 1. **Holding bUSD0** — receive daily USUAL coupon payments 2. **Providing liquidity** — earn USUAL incentives (plus fees) in USD0, bUSD0, or USUAL pools 3. **Staking USUAL as USUALx** — receive **\~22% of daily USUAL emissions** as anti-dilution rewards, plus weekly USD0 revenue distributions (locking required) 4. **Participating via partners** — earn USUAL through integrations with partner DeFi protocols
What role do USUAL token holders play in governance? USUAL holders govern key protocol decisions, including: * **Protocol parameters** — fees, emission rates, collateral ratios, and other system variables * **Collateral decisions** — onboarding/removal of RWAs, exposure limits, risk settings * **Treasury management** — allocations, strategies, and revenue distribution policies * **New asset onboarding** — introduction of future products (e.g., ETH0, EUR0) Governance happens on-chain via **UIPs (Usual Improvement Proposals)**.
How can I participate in governance? To participate: 1. **Hold USUAL** — USUAL and USUALx provide voting rights 2. **Stake as USUALx** — increases participation and qualifies you for revenue distributions 3. **Vote on proposals** — via the governance portal using the voting power per token rules 4. **Submit proposals** — eligible stakeholders can submit UIPs for community review
*** ## Getting Started
How do I get started with Usual Protocol? 1. **Connect your wallet** in the [Usual dApp](https://app.usual.money). 2. **Get USD0** — mint with USDC, or buy on secondary markets (Curve, Uniswap). 3. **Earn yield** — lock USD0 into **bUSD0** for daily USUAL rewards, or deposit into **sUSD0**. 4. **Stake USUAL** — stake as **USUALx** to earn protocol revenue and participate in governance.
How do I deposit assets into Usual Protocol? Use the **Usual Swap** section of the dApp: * **USDC** — deposit USDC and receive USD0 via the mint engine (matched by Collateral Providers) or via secondary-market routing. * **Eligible RWAs** — deposit tokenized T-Bill assets (USYC, M, USTBL) directly for 1:1 USD0 minting. The dApp automatically routes your transaction to the best available rate.
How do I convert USD0 into bUSD0? In the Usual dApp, lock USD0 to mint bUSD0 and begin earning daily USUAL rewards. You can also buy bUSD0 on secondary markets—either way, rewards accrue automatically while you hold the token.
How do I withdraw my assets? You can exit at any time: * **USD0** — redeem 1:1 for underlying RWA collateral via the protocol counter (registration with the RWA partner may be required), or sell on secondary markets for USDC/USDT. * **bUSD0** — sell on secondary markets, recombine with rt-bUSD0 for 1:1 USD0 redemption, or hold until maturity (June 2028) for a guaranteed 1:1 redemption. * **USUALx** — unstake to receive USUAL at the current (appreciated) exchange rate. **Note:** a **10% unstaking fee** may apply.
*** ## Security and Governance
How is the security of my assets ensured? Usual uses a layered security model: * **20+ smart contract audits** by Cantina, Sherlock, Spearbit, Halborn, Hexens, Paladin, and Blackthorne * **Bug bounty program** to incentivize responsible disclosure * **Full collateral backing** with US Treasury Bills (no leverage, no fractional reserves) * **Institutional-grade custody** (BNY Mellon for primary collateral) * **On-chain monitoring** with real-time alerts for collateral deviations * **Insurance fund** to hedge potential collateral value loss
How does Usual protect my deposit? Deposits are held passively in audited smart contracts. They are not rehypothecated, leveraged, or exposed to additional financial risk. Collateral remains isolated from Usual’s balance sheet and is ring-fenced in bankruptcy-remote structures at the tokenizer level. Multiple security audits help ensure contract integrity.
*** ## Earning and Rewards
How can I earn USUAL tokens? You can earn USUAL through multiple activities: | Activity | Reward type | | --------------------------------------------------- | ----------------------------------------------------------------------- | | **Hold bUSD0** | Daily USUAL coupon payments | | **Provide liquidity** (USD0, bUSD0, or USUAL pools) | USUAL LP rewards + trading fees | | **Stake USUAL as USUALx** | \~22% of daily USUAL emissions + weekly USD0 revenue (locking required) | | **Lock USUALx** (1–12 months) | Enhanced revenue share via Revenue Switch | Because emissions are disinflationary, earlier participation generally earns more USUAL per dollar deposited.
What is the Revenue Switch? The Revenue Switch distributes real protocol revenue (from T-Bill yield) to locked USUALx stakers: * **Activated:** January 13, 2025 * **Distribution:** weekly, in USD0 * **Estimated revenue:** \~$5.5–6M per year * **Eligibility:** only **locked USUALx** positions held for the full weekly epoch (**Monday–Sunday UTC**) This makes USUAL a **cash-flow-generating asset**, linking protocol growth to staker returns.
*** ## Partnerships and Integration
Who are Usual Protocol’s partners? Usual works with partners across DeFi and traditional finance: * **RWA providers:** Hashnote (USYC), M0 Foundation, Superstate (USTBL), Spiko (euTBL) * **DeFi protocols:** Curve, Morpho, Pendle, Aave, Fira, Contango * **Cross-chain infrastructure:** Chainlink (CCIP), LayerZero/Stargate * **Investors:** Binance Labs, Kraken Ventures, Galaxy Digital, IOSG Ventures, OKX Ventures
How can I use Usual assets with partner protocols? USD0 and bUSD0 are designed to be composable across DeFi: * **Curve** — provide liquidity in USD0/USDC or USD0/bUSD0 pools * **Morpho** — use USD0 or bUSD0 as lending collateral * **Pendle** — separate and trade yield and principal components of bUSD0 * **Aave** — use USD0 as collateral for borrowing * **Fira** — access leveraged bUSD0 positions via the UZR (Usual Zero Rate) lending market You can access many of these integrations through the Usual dApp or partner interfaces.
What are the future plans for asset integration? Usual’s roadmap extends beyond USD products: * **EUR0** — EUR-denominated stablecoin backed by high-quality Eurozone assets (in development) * **ETH0** — an ETH-denominated product backed by Liquid Staking/Restaking Tokens (discovery phase completed) * **Additional RWA providers** — ongoing diversification via governance * **USUAL Mobile App** — mobile interface with multi-currency accounts, IBAN, credit card, and yield vaults (V2 roadmap) * **USUAL App-Chain** — dedicated blockchain for hosting infrastructure and enforcing compliance All new integrations are governed by the community.
*** ## Addressing Current Issues
How does Usual address the problems in the current stablecoin market? Usual targets three major problems: 1. **Value extraction** — traditional issuers capture billions in revenue from user deposits while returning nothing. Usual redistributes 100% of value — 30% to locked USUALx holders and 70% to the DAO treasury. 2. **Opacity** — USDT and USDC rely on periodic reports. USD0 provides real-time, on-chain verifiable reserves. 3. **Bank risk** — the March 2023 SVB crisis showed how bank-held collateral can become impaired overnight. Usual uses Treasury Bills to eliminate commercial bank counterparty risk.
What actions is Usual taking to promote transparency and fairness? * **On-chain collateral verification** — real-time reserve visibility without third-party attestations * **Community governance** — USUAL holders control collateral decisions, risk parameters, and treasury policy * **Public audit reports** — 20+ audits available to review * **100% DAO ownership** — all protocol revenue flows to the community (30% locked USUALx + 70% DAO treasury) * **Revenue Switch** — weekly revenue distributions create accountability through verifiable cash flows
*** ## Troubleshooting and Support
What should I do if I encounter an issue? 1. Check the [Usual documentation](https://docs.usual.money) and [technical docs](https://tech.usual.money). 2. Ask in official community channels (Discord, Telegram). 3. For transaction issues, confirm your wallet connection and that you’re on a supported network (Ethereum, Arbitrum, Base, or BNB Chain). 4. If the issue persists, contact support through official channels. > ⚠️ **Security reminder:** Usual team members will never DM you first or ask for your private keys or seed phrase.
How can I contact Usual Protocol support? * **Discord:** [discord.gg/tempusual](https://discord.gg/tempusual) * **Telegram:** [t.me/UsualCommunity](https://t.me/UsualCommunity) * **X (Twitter):** [@UsualMoney](https://x.com/UsualMoney) * **Docs:** [docs.usual.money](https://docs.usual.money)
Where can I find the latest updates and announcements? * **Blog:** [usual.money/blog](https://usual.money/blog) * **X (Twitter):** [@UsualMoney](https://x.com/UsualMoney) * **Telegram:** [t.me/UsualCommunity](https://t.me/UsualCommunity) * **Governance forum:** proposal discussion and voting updates * **Dune dashboards:** real-time protocol metrics
*** ## Feedback and Community
How can I provide feedback about the protocol? You can share feedback through: * **Discord:** [discord.gg/tempusual](https://discord.gg/tempusual) (dedicated channels) * **Telegram:** [t.me/UsualCommunity](https://t.me/UsualCommunity) * **Governance proposals:** submit UIPs for changes you want to see * **Community calls:** join regular community sessions Community feedback directly shapes the protocol.
How can I get involved with the Usual community? * Join discussions on [Discord](https://discord.gg/tempusual) and [Telegram](https://t.me/UsualCommunity) * Participate in governance by staking USUAL and voting on proposals * Provide liquidity to support ecosystem growth * Follow updates on [X](https://x.com/UsualMoney) and the [blog](https://usual.money/blog) * Contribute to governance forum discussions * Track protocol data on community-built [Dune dashboards](https://dune.com) Active participation is how users become owners—not just customers.
# Deposits & Withdrawals Your bank account connects directly to Usual. Deposit euros, receive EUR0. Withdraw EUR0, receive euros. No exchange. No intermediate step. One rail, both directions. *** ### Overview Every Usual account comes with a **personal IBAN** — a standard European bank account identifier. You can send and receive SEPA transfers across 36 countries in Europe, the UK, and Switzerland. This means you can move between your bank and Usual using the same system you already use for rent, salaries, and subscriptions. No exchange account. No third-party broker. No copy-pasting addresses between platforms. | | Deposit | Withdrawal | | ---------------- | ----------------------------------------------------------- | ----------------------------------------------------------- | | **Direction** | EUR → EUR0 | EUR0 → EUR | | **Method** | SEPA transfer to your Usual IBAN | SEPA transfer from Usual to your bank | | **Speed** | Seconds (SEPA Instant) or 1–2 business days (standard SEPA) | Seconds (SEPA Instant) or 1–2 business days (standard SEPA) | | **Fees** | None | None | | **Availability** | 24/7 | 24/7 | | **Coverage** | 36 SEPA countries | 36 SEPA countries | *** ### Getting Started Before you can deposit or withdraw euros, you need to complete a one-time identity verification. This process takes **2 to 3 minutes** and is handled entirely within the Usual app. #### Steps 1. **Open the deposit section** in the Usual app. 2. **Create your account** — enter your email and set a password. 3. **Verify your identity** — follow the on-screen steps. You'll need a valid ID document (passport, national ID card, or driving license). The verification covers personal and business accounts. 4. **Receive your IBAN** — once verification is approved, your personal IBAN is issued automatically. You'll see it directly in the app. 5. **Start depositing** — send a SEPA transfer from your bank to your Usual IBAN. That's it. Your IBAN is linked to your Usual account. You can link multiple wallets to the same account without repeating the verification process. #### Supported Countries Identity verification is available for residents of: * **European Union** (all 27 member states) * **United Kingdom** * **Switzerland** * **Latin America** (expanding coverage) *** ### Deposit Euros Send euros from your bank account. Receive EUR0 in your Usual account. #### How it works 1. **Copy your IBAN** from the Usual app. 2. **Initiate a SEPA transfer** from your bank — the same way you'd send a payment to anyone in Europe. 3. **Your EUR0 balance updates automatically.** No manual conversion. No intermediate steps. That's the entire flow. Your bank sends euros, and your Usual account receives EUR0. #### Timing Most European banks support **SEPA Instant**, which settles in seconds — any time of day, any day of the week. If your bank uses standard SEPA, the transfer arrives within 1 to 2 business days. You can check the status of incoming transfers directly in the Usual app. Notifications update in real time: initiated, processing, completed. #### Important details * **No minimum deposit.** Any amount works. * **Large transfers** (above approximately €15,000) may require additional documentation for compliance purposes. If needed, you'll be prompted to upload proof of funds directly in the app. * **SEPA Instant threshold:** Transfers above approximately €150,000 may fall back to standard SEPA, depending on your bank's limits. This is a SEPA network rule, not a Usual limitation. *** ### Withdraw Euros Convert EUR0 back to euros. Receive them in your bank account. #### How it works 1. **Go to the withdrawal section** in the Usual app. 2. **Enter the destination IBAN** — your own bank account, or any third-party IBAN (a company, another individual). 3. **Confirm the amount.** EUR0 is converted and euros are sent via SEPA transfer. Your euros arrive in the destination bank account. The flow works in reverse — same rail, same clarity. #### Timing Withdrawals follow the same SEPA timing: * **SEPA Instant:** Seconds, 24/7. * **Standard SEPA:** 1 to 2 business days. The availability of SEPA Instant depends on the receiving bank. Most European banks support it. #### Important details * **Withdraw to any IBAN.** Not limited to your own bank account — you can send euros to companies or other individuals. * **No withdrawal queue.** Withdrawals are processed immediately, not batched. * **Status tracking.** You can monitor the withdrawal status in real time: pending, processing, completed, or failed. If a payout fails, you'll receive a clear error notification. *** ### EUR0 — What You Hold When you deposit euros into Usual, you receive **EUR0** — a euro balance backed by European sovereign bonds (EUTBL by Spiko). EUR0 is not a proxy or an IOU. It's a regulated, fully backed digital euro that you hold directly. One EUR0 is always redeemable for one euro. From EUR0, you can: * **Save** — deposit into sEUR0 to earn yield from European sovereign bonds. * **Hold** — keep your euros in your Usual account, ready to spend or withdraw. * **Withdraw** — convert back to euros and send to your bank at any time. For full EUR0 details, see the EUR0 product page. *** ### Fees | Action | Fee | | ----------------------------------- | ------------------------------------------------------------------------------- | | Identity verification | Free | | IBAN issuance | Free | | Deposit (EUR → EUR0) | Free | | Withdrawal (EUR0 → EUR) | Free | | SEPA transfer (Instant or Standard) | Free from Usual. Your bank may charge its own SEPA fees — check with your bank. | *** ### Frequently Asked Questions #### Can I deposit in currencies other than euros? Currently, deposits and withdrawals support **euros only**, via SEPA. Dollar deposits (USD → USD0) use a different mechanism — see the USD0 page for details. More currencies and rails are planned. #### How long does verification take? Most verifications complete in **2 to 3 minutes**. In rare cases, additional review may take up to 24 hours. #### Can I use my Usual IBAN to receive a salary or set up recurring transfers? Your Usual IBAN is a standard SEPA IBAN. Any entity that can send a SEPA transfer can send euros to it. Whether your employer supports it depends on their payroll system. #### What happens if I send euros from a bank that doesn't support SEPA Instant? The transfer goes through standard SEPA and arrives within 1 to 2 business days. The process is the same — just slower. #### Can I withdraw to a bank account that isn't mine? Yes. You can withdraw to any valid IBAN — your own, a company account, or another individual's account. #### What if my deposit or withdrawal fails? You'll receive a notification with details about the failure. Common reasons include incorrect IBAN formatting, compliance holds on large transfers, or bank-side rejections. Contact Usual support if you need help resolving a failed transaction. #### Is there a maximum deposit or withdrawal amount? There is no hard cap from Usual. SEPA Instant transfers are typically limited to approximately €150,000 per transaction (a SEPA network rule). Above that threshold, the transfer falls back to standard SEPA. For very large transfers, additional compliance documentation may be required. *** ### Regulatory Framework The banking infrastructure behind deposits and withdrawals is operated by a **European Electronic Money Institution (EMI)**, fully licensed under MiCA — the European Union's Markets in Crypto-Assets regulation. What this means for you: * **Regulated electronic money.** Euros are held as regulated e-money with a minimum 102% overcollateralization in segregated accounts. Full redemption rights at par, guaranteed by European financial law. * **European compliance.** Full KYC and AML compliance under EU directives. Reserves are independently audited annually. * **Consumer protection.** E-money holders benefit from legal protections that include priority over senior bank creditors in the event of insolvency. Usual does not custody fiat funds and does not act as a payment service provider. All fiat processing, identity verification, and regulatory compliance are handled by the licensed infrastructure partner. *** *Your bank account. Your euros. Connected to Usual.* # Stablecoins # USD0 USD0 is the first stablecoin issued by Usual Protocol. It is a permissionless, fully collateralized stablecoin backed by **tokenized US Treasury Bills** and **repurchase agreements (repos)**. USD0 is the foundational asset of the Usual ecosystem, connecting institutional‑grade real‑world assets (RWAs) with the composability of DeFi. *** ## Why USD0? The stablecoin market is largely controlled by centralized issuers. In 2023, **Tether and Circle generated over $10B in revenue** from user deposits while sharing none of that value with the users who enabled it. In addition, their reserve strategies typically include **commercial bank deposits** and other opaque structures, exposing users to counterparty risk—highlighted by the March 2023 Silicon Valley Bank event, when **USDC briefly depegged to \~$0.95**. USD0 is designed to address these structural issues: * **Limited bank risk**: Collateral is invested exclusively in **US Treasury Bills** and **overnight repos**, eliminating fractional reserve exposure and commercial bank counterparty risk. * **Revenue redistribution**: Instead of directing 100% of yield to the issuer, Usual redistributes **100% of protocol value** to the community via the **USUAL** token. * **On‑chain verifiable reserves**: No dependence on periodic accounting attestations, anyone can audit USD0’s backing **in real time on-chain**.
FeatureUSD0USDCUSDT
CollateralUS Treasury Bills (on‑chain)Bank deposits + TreasuriesMixed reserves
TransparencyReal‑time on‑chain verificationMonthly attestationsQuarterly reports
Revenue sharing100% to locked USUALx holders + DAO treasuryNoneNone
Bank riskLimitedYes (SVB event)Partial
GovernanceCommunity‑driven (DAO)CorporateCorporate
*** ## USD0 as a Fiat Backed Stablecoin USD0 follows an **Fiat Backed Stablecoin** model. Rather than relying on opaque bank deposits, USD0 aggregates **tokenized US Treasury Bill** assets from multiple institutional providers **directly on-chain**. This system is implemented through the **Usual Collateral Bridge Infrastructure (UCBI)**, the protocol layer responsible for: * collateral onboarding * minting and redemption * reserve management integrations ### Participant model UCBI connects two participant types: * **Permissioned users** (institutional participants, accredited investors) can directly **deposit** and **redeem** the underlying RWA collateral. * **Permissionless users** (retail, DeFi participants) interact via an **indirect matching system** that pairs permissioned **Collateral Providers (CPs)** with permissionless minters. This architecture enables **1:1 on-chain minting and redemption** for all users, regardless of direct access to the underlying tokenized securities. > **Scalability note:** USD0 is the first USD‑denominated LDT. The same architecture is designed to extend to additional asset classes, including **ETH0** (LST/LRT-backed), **EUR0** (Eurozone-backed). *** ## Key Features ### Permissionless and composable USD0 is a standard **ERC‑20** token and is fully transferable. It is designed to integrate across DeFi: * collateral on lending markets (e.g., **Morpho**, **Aave**) * trading pairs on DEXs (e.g., **Curve**, **Uniswap**) * base asset for Usual products (**bUSD0**, **sUSD0**, **USD0a**) ### Enhanced security model Circulating USD0 supply is fully collateralized by **US Treasury Bills and repos**, with: * **no leverage** * **no fractional reserves** * **limited commercial banking exposure** Risk constraints include: * portfolio duration below **0.33 years** (to reduce interest rate risk) * **zero tolerance** for FX risk and credit risk ### Real‑time transparency Reserve composition and value are visible **on-chain at all times**. Fund administrators publish reserve data in real time, removing reliance on periodic third‑party attestations. ### Unified, deconcentrated liquidity USD0 aggregates RWA deposits across multiple issuers (e.g., **Hashnote**, **M0, Spiko**, and others). This creates a **deconcentrated collateral base** that reduces dependence on any single provider. ### Peg protection Peg stability is enforced by the **Multi Collateral Controller**, which includes: * **Programmatic 1:1 backing** enforced by smart contracts * **Arbitrage support**: USD0 is redeemable at par via the protocol, creating natural price floors and ceilings * **Insurance fund**: a dedicated reserve (**0.33%–5.33% of USD0 supply**) that can burn tokens to restore per‑unit backing in stress scenarios * **Intelligent mint routing**: mint orders can route through Curve pools when secondary market pricing is more favorable, helping maintain a tight peg. *** ## RWA Collateral USD0 is backed exclusively by tokenized RWAs that meet strict eligibility criteria: * **Fully collateralized** (no leverage or fractional reserve exposure) * **Low risk** (only sovereign bonds—US Treasuries—accepted) * **Transparent** (on-chain verifiable; frequent off-chain audits) * **Liquid** (portfolio duration below **0.33 years**; assets redeemable within **5 days**) ### Primary collateral: Hashnote USYC | Property | Detail | | -------------- | -------------------------------------------- | | **Contract** | `0x136471a34f6ef19fE571EFFC1CA711fdb8E49f2b` | | **Strategy** | Reverse repos and US Government securities | | **Custody** | BNY Mellon | | **Auditor** | Cohen and Co | | **Settlement** | T+0 to T+1 (USDC or PYUSD) | | **Regulation** | CIMA Licensed, CFTC Registered | USYC’s underlying reverse repos are executed with the **Depository Trust & Clearing Corporation (DTCC)**, which carries an **AA‑ credit rating**. ### Additional accepted collateral
AssetContract addressBacking
M by M00x866A2BF4E572CbcF37D5071A7a58503Bfb36be1bUS Treasury Bills
USDC (limited)0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48US Treasury Bills
USTBL by SPIKO0xe4880249745eAc5F1eD9d8F7DF844792D560e750US Treasury Bills
For internal operations, the protocol maintains wrapped versions: * **UsualM**: `0x4Cbc25559DbBD1272EC5B64c7b5F48a2405e6470` * **UsualUSDC**: `0xb672B3976bAa3952bFb2eCE8eeFB784f8daB1424` ### Collateral governance Collateral onboarding and risk parameters are governed by the community via **USUAL token governance**, including: * adding/removing collateral types * setting exposure limits * adjusting risk parameters *** ## Flow and Architecture ### Minting USD0 USD0 can be minted through two primary paths. #### Direct minting (RWA deposit) Users deposit eligible tokenized RWAs (e.g., **USYC**, **M**, **USTBL**) into the protocol and receive USD0 **1:1**. ``` RWA Token → DaoCollateral → USD0 ``` * **Contract (Ethereum):** `0xde6e1F680C4816446C8D515989E2358636A38b04` (DaoCollateral) * Best suited for institutional users and holders of tokenized RWAs. #### Indirect minting (via USDC) Users deposit **USDC**; a **Collateral Provider (CP)** supplies the underlying RWA collateral on the user’s behalf. CPs receive an **instant reward in USUAL** once the cycle completes. Reward rates are dynamically adjusted by the **Multi Collateral Controller** to incentivize balanced collateral composition. ``` USDC → SwapperEngine → CP supplies RWA → USD0 ``` * **Contract (Ethereum):** `0xB969B0d14F7682bAF37ba7c364b351B830a812B2` (SwapperEngine) * Designed for permissionless access (users do not need to hold tokenized RWAs). * Orders below **100,000 USD0** are routed to secondary markets (DEXs). #### Mint routing optimization The protocol supports intelligent routing to reduce slippage and support peg discipline: * Small mint orders may route through the **Curve or Uniswap v3 USD0/USDC** pool when more efficient. A maximum trade size is computed to prevent significant USD0 over‑pegging. *** ### Redeeming USD0 USD0 redemption can occur via: #### - Direct redemption Present USD0 to the **DaoCollateral** contract and receive underlying tokenized Treasury collateral at par (**1:1**). #### - Secondary market sale Sell USD0 for USDC/USDT on Curve, Uniswap, or other supported venues. Peg dynamics are supported by arbitrage: * **USD0 < $1**: arbitrageurs buy USD0 on DEXs and redeem at par → buying pressure supports the peg * **USD0 > $1**: arbitrageurs mint at par and sell at a premium → selling pressure tightens the peg
*** ### Flow summary ``` Direct Mint: RWA Token → DaoCollateral → USD0 Indirect Mint: USDC → SwapperEngine → CP supplies RWA → USD0 Routed Mint: USDC → Curve (if favorable) → USD0 Direct Redeem: USD0 → DaoCollateral → RWA Token Market Redeem: USD0 → DEX (Curve/Uniswap) → USDC/USDT Routed Deposit: USD0 → Curve (if bUSD0 depegged) → bUSD0 ``` *** ## Contract Addresses ### USD0 token
ChainAddress
Ethereum0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5
Arbitrum0x35f1C5cB7Fb977E669fD244C567Da99d8a3a6850
Base0x758a3e0b1F842C9306B783f8A4078C6C8C03a270
BNB Chain0x758a3e0b1f842c9306b783f8a4078c6c8c03a270
### Infrastructure contracts (Ethereum)
ContractAddressFunction
DaoCollateral0xde6e1F680C4816446C8D515989E2358636A38b04Direct minting and redemption
SwapperEngine0xB969B0d14F7682bAF37ba7c364b351B830a812B2Indirect minting via USDC
ClassicalOracle0xb97e163cE6A8296F36112b042891CFe1E23C35BFCollateral price feeds
Chainlink USD0 Oracle0x7e891DEbD8FA0A4Cf6BE58Ddff5a8ca174FebDCBExternal USD0 pricing
# RWA Collateral USD0 collateral follows Usual’s stringent risk policy. It is backed exclusively by secure, short-duration assets, primarily U.S. Treasury Bills accessed through overnight repo and similar cash-management instruments. Usual Labs selects collateral providers through extensive due diligence of the relevant market participants to mitigate counterparty and default risks. The objective is to provide USD0 holders with a security framework that is designed to exceed typical industry standards. ## Overview The **RWA Aggregator** is a core component of the **Usual Collateral Bridge Infrastructure (UCBI)**—the foundational layer that powers **USD0** minting, redemption, and collateral management. It aggregates tokenized **Real-World Assets (RWAs)** from multiple institutional providers into a unified, **permissionless** on-chain system. This enables USD0 to operate as a **fully collateralized**, **on-chain verifiable** stablecoin. Instead of relying on a single collateral source or opaque off-chain reserves, the RWA Aggregator consolidates collateral from leading tokenized-asset issuers into a transparent and composable stablecoin that can be **minted and redeemed 1:1**. *** ## Architecture The RWA Aggregator connects permissioned RWA tokenizers to permissionless DeFi users. ``` ┌─────────────────────────────────────────────────────────────┐ │ RWA Tokenizers (Permissioned) │ │ ┌──────────┐ ┌──────────┐ ┌──────────┐ ┌────────────┐ │ │ │ Hashnote │ │ M by M0 │ │ USTBL │ │ Others │ │ │ │ (USYC) │ │ │ │ (Spiko) │ │ │ │ │ └────┬─────┘ └────┬─────┘ └────┬─────┘ └─────┬──────┘ │ └───────┼──────────────┼──────────────┼─────────────┼─────────┘ │ │ │ │ ▼ ▼ ▼ ▼ ┌─────────────────────────────────────────────────────────────┐ │ RWA Aggregator (UCBI Layer) │ │ │ │ ┌───────────────────┐ ┌──────────────────────────┐ │ │ │ Multi Collateral │ │ Collateral Wrapping & │ │ │ │ Controller │ │ On-Chain Verification │ │ │ └────────┬──────────┘ └────────────┬─────────────┘ │ │ │ │ │ │ ▼ ▼ │ │ ┌──────────────────────────────────────────────────┐ │ │ │ DaoCollateral Contract │ │ │ │ 0xde6e1F680C4816446C8D515989E2358636A38b04 │ │ │ └──────────────────────┬───────────────────────────┘ │ └─────────────────────────┼───────────────────────────────────┘ │ ▼ ┌─────────────────────────────────────────────────────────────┐ │ USD0 (Permissionless) │ │ 0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5 │ │ │ │ Mint ◄──► Redeem ◄──► Trade ◄──► Compose in DeFi │ └─────────────────────────────────────────────────────────────┘ ``` **Key idea:** UCBI bridges permissioned RWA issuance with permissionless DeFi participation, while maintaining **1:1 mint/redeem** behavior and on-chain transparency. *** ## Collateral Eligibility Criteria Before any Real-World Asset (RWA) tokenizer is accepted as collateral for USD0, it must pass a comprehensive due diligence process. All accepted collateral must satisfy four core requirements:
CriterionRequirement
Fully Collateralized100% collateralized with no leverage exposure. This excludes fractional-reserve risk and any leverage structure that could result in collateral loss.
Low RiskInvested exclusively in liquid U.S. Treasury Bills (or equivalent government-backed cash instruments). Counterparty, liquidity, credit, interest-rate, and FX risks are each evaluated independently.
TransparentVerifiable on-chain in real time, with frequent public financial audits to provide high off-chain transparency.
LiquidHighly liquid with portfolio duration < 0.33 years (~4 months). Any collateral exceeding this duration threshold is ineligible. Redemptions must be achievable with minimal slippage within a maximum of 5 business days.
*** ## Financial Risk Policy Usual enforces a multi-layer risk management framework with **zero tolerance** for credit and FX risk: * **Interest Rate Risk** * Individual RWA duration must be **< 0.5 years**. * Portfolio average duration must not exceed **0.33 years**. * A passive fluctuation tolerance of **0.25 years** is allowed. * If breached, corrective measures may include duration adjustment, withdrawal restrictions, and/or insurance fund increases. * **FX Risk** * **Zero tolerance**: only USD-denominated assets or **100% FX-hedged** positions are accepted. * FX exposure is monitored by both the tokenizer and Usual independently. * **Credit Risk** * **Zero tolerance**: investments restricted to **U.S. Treasuries**, quasi-government debt, or cash. * **Corporate debt is prohibited**. * **Liquidity Risk** * Portfolio diversification across multiple RWA types is used to reduce asset-class-specific illiquidity risk. *** ## Primary Collateral: Hashnote USYC | Property | Detail | | ---------------------- | -------------------------------------------------------- | | **Token** | USYC (Short Duration Yield Fund) | | **Contract** | `0x136471a34f6ef19fE571EFFC1CA711fdb8E49f2b` | | **Strategy** | Reverse repurchase agreements + US Government securities | | **Custody** | BNY Mellon | | **Prime Broker** | Marex | | **Auditor** | Cohen and Co | | **Fund Administrator** | NAV Consulting | | **Regulatory** | CIMA Licensed, CFTC Registered | | **Settlement** | T+0 to T+1 into USDC or PYUSD | USYC was the first tokenizer to pass Usual’s due diligence process. Its underlying reverse repos are made with the **Depository Trust & Clearing Corporation (DTCC)**, which carries an **AA- credit rating**. Usual’s first and primary collateral partner is [Hashnote](https://usyc.hashnote.com/). Over time, the protocol intends to diversify USD0 (bUSD0) collateral holdings to further reduce concentration risk. Any future collateral additions remain subject to community governance. ### What is USYC? USYC is the on-chain representation of the **Hashnote International Short Duration Yield Fund Ltd.** (“SDYF”). SDYF invests primarily in: * [Reverse repurchase agreements](https://www.investopedia.com/terms/r/reverserepurchaseagreement.asp) * U.S. Government-backed securities The underlying reverse repos are conducted with the **Depository Trust & Clearing Corporation (DTCC)** (credit rating **AA-**). Hashnote is managed by an experienced investment team. ### Why USYC? Because USYC is invested in overnight repo, it is designed to minimize: * market risk, * duration risk, * and credit risk. This results in a risk profile comparable to a U.S. Treasury money market fund, while also providing ERC-20 benefits such as transaction speed, transparency, and composability. USYC provides access to short-term “risk-free” returns by deploying assets primarily into reverse repo, with a portion allocated to T-Bills to maintain maximum liquidity and minimal duration exposure. ### Liquidity * Mint/redeem time: **T+0 to T+1** into **USDC** or **PYUSD** * Atomic on-chain instant mint/redeem: * On-chain mint is available only during **market hours** * On-chain redemption is available at any time, but **size-limited** ### Safety * No credit intermediaries * No loans to third parties * Fully regulated by **CIMA** * Direct access to a **segregated custodial account** ### Transparency * Assets and token price are published via **oracle feed** * All fees (service, redemption, custodian) are fully disclosed * ERC-20 contract is verified on Etherscan ### Fund Management USYC is operated by Hashnote, an on-chain institutional asset manager backed by partners of **DRW**. Hashnote maintains an in-house fixed income team with a track record in consistent risk-adjusted returns and liquidity management. ### Service Providers & Regulatory Compliance * Cash and securities custody: **Bank of New York Mellon** * Hashnote offshore funds: licensed as mutual funds by the **Cayman Islands Monetary Authority (CIMA)** * U.S. fund manager: registered as a **CPO** with the **Commodity Futures Trading Commission (CFTC)** ### On-Chain Information | Property | Value | | ---------------------- | -------------------------------------------- | | **Token standard** | ERC-20 | | **Available networks** | Ethereum | | **Address** | `0x136471a34f6ef19fE571EFFC1CA711fdb8E49f2b` | ### Providers | Role | Provider | | ---------------- | ------------------------------ | | **Custody** | BNY Mellon | | **Prime broker** | Marex | | **Bank** | Customers Bank | | **Auditor** | Cohen and Co | | **Fund admin** | NAV Consulting | | **KYC / AML** | NAV Consulting, LMO Consulting | ### Regulation | Region | Details | | ---------- | ----------------------------------------------------------------------- | | **US** | CFTC — US-CPO for Hashnote Feeder Fund | | **Non-US** | CIMA — SDYF and Hashnote Master Fund registered as Caymans Mutual Funds | *** ## Additional Accepted Collateral As the protocol has grown, additional collateral types have been onboarded to diversify risk:
AssetContract AddressTypeBacking
USYC (Hashnote)0x136471a34f6ef19fE571EFFC1CA711fdb8E49f2bPrimary collateralReverse repos & U.S. Government securities
M by M00x866A2BF4E572CbcF37D5071A7a58503Bfb36be1bCollateralU.S. Treasury Bills
USTBL (Spiko)0xe4880249745eAc5F1eD9d8F7DF844792D560e750CollateralU.S. Government securities
USDC0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48Indirect mintingCircle USD Coin
### Wrapped Collateral (Internal Protocol Use) Usual maintains wrapped versions of certain collateral assets for internal protocol integrations: | Wrapped Asset | Contract Address | | ---------------------------- | -------------------------------------------- | | **UsualM** (Wrapped M) | `0x4Cbc25559DbBD1272EC5B64c7b5F48a2405e6470` | | **UsualUSDC** (Wrapped USDC) | `0xb672B3976bAa3952bFb2eCE8eeFB784f8daB1424` | *** ## Tokenizer Due Diligence Process Every candidate tokenizer is evaluated across the following dimensions before collateral acceptance: 1. **Security**: Only experienced tokenizers whose technology has been thoroughly audited. 2. **Regulatory compliance**: Full compliance with applicable regulations across relevant jurisdictions. 3. **Asset management**: Skilled, compliant managers operating under strict diversification guidelines. 4. **Transparency**: Full transparency of underlying assets, audited by independent third parties. 5. **Asset protection**: Assets must be ring-fenced if the tokenizer enters bankruptcy. 6. **Fee structure**: Fees must be reasonable and must not materially erode returns. 7. **Redemption processes**: Prompt, operationally clear redemption paths. 8. **Diversification**: Diversified exposure across platforms to reduce concentration risk. ### Counterparty Risk Layers Usual identifies three counterparty-risk layers and applies mitigation controls at each level: | Layer | Mitigation | | ----------------------- | ------------------------------------------------------------------------------------------------------------------ | | **Tokenizer risk** | Bankruptcy remote vehicles (BRVs), independent audits, periodic performance reviews | | **Fund manager risk** | Regulated managers with proven track records; ongoing assessment of investment decisions | | **Bank/custodian risk** | Highly rated institutions only; diversified banking relationships; contingency planning for institutional failures | *** ## Community Governance of Collateral A core differentiator of Usual is that the **community governs which collateral types are accepted** by the protocol. Through USUAL token governance, holders can vote on: * Adding new collateral types * Setting maximum exposure limits per collateral provider * Adjusting risk parameters based on market conditions * Removing collateral that no longer meets protocol standards *** ## Insurance Fund Usual maintains an insurance fund per **Liquid Deposit Token (LDT)** to hedge against collateral value loss: * **Accrual rate**: set by the DAO (approximately **20% of yield**) * **Maximum cap**: between **0.33% and 5.33%** of all USD0 LDTs * calibrated using historical VAR analysis and stress tests simulating extreme interest-rate rises beyond any observed in the last 30 years * **Replenishment time**: with a **0.33-year** average bond duration and **5%** coupon rate, approximately **24 days** to fully replenish ### Counter Bank Run Mechanism (CBR) The **Counter Bank Run Mechanism (CBR)** uses the insurance fund to: * burn USD0, and * increase the salvageable redemption value per token. If the salvageable value falls below 1, the DAO can temporarily pause the minting engine and route activity through the secondary market to prioritize re-pegging USD0. # Mint & Redeem Usual Protocol is a critical infrastructure layer that aggregates tokenized Real-World Assets (RWAs) from leading institutional providers, including **Hashnote**, **M0 Foundation**, **Superstate**, and others, and synthesizes them into a single, composable stablecoin: **USD0**. The system is organized into two architectural layers that together form the **Usual Collateral Bridge Infrastructure (UCBI)**. UCBI is the foundational technology enabling USD0 minting, redemption, and collateral management. *** ## Architectural Overview ### Layer 1: Usual Collateral Bridge Infrastructure (UCBI) UCBI is the protocol’s base layer and is responsible for: * **Minting and redeeming USD0** (the Liquid Deposit Token, or **LDT**) **1:1** against eligible RWA collateral * **Bridging permissioned and permissionless users** * Institutional/permissioned participants deposit eligible RWA collateral directly * Retail/permissionless users access 1:1 minting via an indirect matching system powered by **Collateral Providers (CPs)** * **Collateral management** * Enforcing eligibility criteria * Maintaining portfolio diversification targets * Providing real-time on-chain reserve verification * **Insurance and stability** * Maintaining an insurance fund * Operating the **Counter Bank Run Mechanism (CBR)** to protect the peg under stress *** ## How It Works: The RWA Aggregator Usual operates as an open platform: it does not rely on a single collateral type. Instead, it **aggregates multiple tokenized RWA sources** into a unified, permissionless stablecoin (USD0). This architecture: * **Simplifies access** to institutional-grade RWAs that are typically restricted (e.g., accredited investor constraints) * **Acts as a distributor** for tokenizers, expanding their reach and TVL (e.g., Hashnote TVL surged after integrating with Usual) * **Limits commercial bank counterparty risk**: USD0 is backed by US Treasury Bills (not bank deposits), avoiding SVB-type exposure * **Enables real-time, on-chain reserve verification** rather than relying solely on periodic attestations *** ## Minting USD0 USD0 can be minted via two primary paths, designed to serve both institutional and retail users. ``` Direct Mint: RWA Token ──▶ DaoCollateral ──▶ USD0 Indirect Mint: USDC ──▶ SwapperEngine ──▶ CP supplies RWA ──▶ USD0 Secondary: USDC ──▶ Curve (if favorable) ──▶ USD0 ``` ### 1) Direct Minting (RWA Deposit) Permissioned users deposit eligible tokenized RWAs directly into the protocol and receive USD0 **1:1**. ``` RWA Token (e.g., USYC) → DaoCollateral → USD0 ``` * **Contract**: `DaoCollateral` — `0xde6e1F680C4816446C8D515989E2358636A38b04` * Intended for institutional participants holding tokenized Treasury Bill collateral * Settlement is on-chain and immediate *** ### 2) Indirect Minting (USDC Deposit) Permissionless users deposit USDC; a **Collateral Provider (CP)** supplies the underlying RWA collateral on their behalf. ``` USDC → SwapperEngine → CP supplies RWA → USD0 ``` * **Contract**: `SwapperEngine` — `0xB969B0d14F7682bAF37ba7c364b351B830a812B2` * CPs receive an **instant reward in USUAL** upon completing each minting cycle (incentivized by the **Multi Collateral Controller**) * CPs can reuse the exchanged stablecoins and USUAL rewards to compound and iterate the provision process * **Launch-phase minimum order size**: **100,000 USD0** (smaller amounts are routed to secondary markets) *** ## Redeeming USD0 USD0 can be redeemed via one primary path and one secondary, designed to serve both institutional and retail users. ``` Direct Redeem: USD0 → DaoCollateral Contract → RWA Token (USYC, M, USTBL) Secondary Market: USD0 → DEX (Curve/Uniswap) → USDC / USDT ``` ### 1) Direct Redemption (RWA Withdrawal) Users present USD0 to the `DaoCollateral` contract and receive the underlying tokenized Treasury Bills at **1:1 par value**. ``` USD0 → DaoCollateral → RWA Token (e.g., USYC) ``` *** ### 2) Secondary Market (DEX / Aggregators / OTC) You can sell USD0 for USDC, USDT, or other stablecoins on secondary markets, including decentralized exchanges (e.g., Curve, Uniswap), aggregators (e.g., 1inch, Paraswap), or OTC desks. * **Who it’s for:** Retail users, smaller amounts, or anyone prioritizing immediate liquidity without interacting with primary-market contracts. * **Typical pricing:** Close to $1.00 due to arbitrage incentives. * **Common venues:** Curve USD0/USDC (primary liquidity venue), Uniswap, and other supported markets across **Ethereum, Arbitrum, Base, and BNB Chain**. *** ## Providing RWA Collateral (Collateral Providers) Collateral Providers (CPs) bridge permissioned RWAs and permissionless users by supplying eligible collateral for indirect minting. ### Collateral Provider Flow 1. **Deposit eligible collateral** (e.g., USYC, M, USTBL) to the protocol 2. **Receive stablecoins** (USDC) exchanged from permissionless users. 3. **Collateral is used** to mint and deliver USD0 to permissionless users **1:1** 4. **Reloop** ``` Collateral Provider Permissionless User | | | 1. Deposits RWA (e.g., USYC) | | ───────────────► DaoCollateral | | | | | | 2. User deposits USDC | | ◄──────────────────| | | | | 3. Receives USDC | 3. Receives USD0 | | ◄──────────────────── | ──────────────────►| | | | | | | | 4. Rebuy RWA (optional loop) | | ─────────────────────────────► | ``` This mechanism ensures both institutional RWA holders and everyday DeFi users can access **USD0** efficiently, while the protocol maintains a balanced collateral portfolio and reliable primary-market minting. *** ## Peg Stability Architecture USD0 targets a **$1 peg** using multiple reinforcing mechanisms. ### Arbitrage Loop | Scenario | Arbitrage Action | Result | | ------------- | --------------------------------------------------- | ---------------------------------- | | **USD0 < $1** | Buy USD0 on a DEX → redeem at par via DaoCollateral | Buying pressure helps restore peg | | **USD0 > $1** | Mint USD0 at par → sell on a DEX at a premium | Selling pressure helps restore peg | *** ### Oracle Infrastructure | Oracle | Address | Purpose | | --------------------- | -------------------------------------------- | ---------------------------------------------- | | ClassicalOracle | `0xb97e163cE6A8296F36112b042891CFe1E23C35BF` | Collateral pricing and ratio enforcement | | Chainlink USD0 Oracle | `0x7e891DEbD8FA0A4Cf6BE58Ddff5a8ca174FebDCB` | USD0 price data for external DeFi integrations | *** ## Key Smart Contracts
ContractAddressFunction
USD00x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5USD0 stablecoin Token
bUSD00x35D8949372D46B7a3D5A56006AE77B215fc69bC0Liquid Bond Token
USUAL0xC4441c2BE5d8fA8126822B9929CA0b81Ea0DE38EGovernance token
USUALx0x06B964d96f5dCF7Eae9d7C559B09EDCe244d4B8EStaked USUAL
DaoCollateral0xde6e1F680C4816446C8D515989E2358636A38b04Direct mint/redeem
SwapperEngine0xB969B0d14F7682bAF37ba7c364b351B830a812B2Indirect USDC mint
ClassicalOracle0xb97e163cE6A8296F36112b042891CFe1E23C35BFCollateral pricing
*** ## Multi-Chain Deployment USD0 and supporting infrastructure are deployed across multiple chains: | Chain | USD0 Address | Bridge Technology | | ---------------------- | -------------------------------------------- | -------------------------- | | **Ethereum** (primary) | `0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5` | Native | | **Arbitrum** | `0x35f1C5cB7Fb977E669fD244C567Da99d8a3a6850` | Chainlink CCIP / LayerZero | | **Base** | `0x758a3e0b1F842C9306B783f8A4078C6C8C03a270` | Chainlink CCIP / LayerZero | | **BNB Chain** | `0x758a3e0b1f842c9306b783f8a4078c6c8c03a270` | Chainlink CCIP / LayerZero | Cross-chain transfers use **Chainlink CCIP** for secure messaging and **LayerZero** for omnichain token transfers, supporting unified liquidity across networks. # EUR0 **EUR0** is the euro-denominated stablecoin of the Usual ecosystem. It is collateralized by **high-quality European sovereign bonds** via **euTBL** (Spiko EU T‑Bills Money Market Fund). EUR0 is designed as the euro counterpart to **USD0**: a settlement asset in **EUR (€)** that is composable in DeFi and built on stable underlying assets to maximize security. EUR0 uses the **same stablecoin architecture as USD0,** bridging **permissioned** and **permissionless** access to tokenized real-world assets (RWAs). While USD0 is backed by US Treasury Bills, EUR0 is backed by **Eurozone T‑Bills** (France, Germany, and other Eurozone sovereign issuers), supporting Usual’s multi-currency vision. *** ## Mint & Redeem EUR0 supports two minting/redemption routes: * **Permissionless (via EURC)**: Mint/redeem at **1 EUR0 = €1 EURC**, instantly **within available euTBL/EURC liquidity**, via the **Swapper Engine**. * **Permissioned (via euTBL)**: Mint/redeem at **1 EUR0 = €1 euTBL**, with **unlimited** capacity for eligible (allowlisted) addresses. ### Direct path (permissioned): `euTBL → EUR0` Use this path if you are eligible to interact with Spiko’s permissioned contracts. * **Mint**: Deposit **euTBL** to mint **EUR0 at par**\ \&#xNAN;*(€1 euTBL = 1 EUR0)*. * **Redeem**: Burn **EUR0** to receive **euTBL at par**, minus a **3 bps** redemption fee\ \&#xNAN;*(1 EUR0 = €1 euTBL − 3 bps)*. * **KYC/KYB**: Access to Spiko’s **Teller/Permission Manager** contracts is restricted to **allowlisted** addresses. Institutional use requires **KYC/KYB**. This mirrors the USD0 architecture: permissioned participants (e.g., institutional users, accredited investors) can mint/redeem directly against the underlying collateral through the protocol’s `DaoCollateral`-equivalent contract. ### Indirect path (permissionless): `EURC → EUR0` via the Swapper Engine This path enables retail and DeFi-native users to access EUR0 without holding euTBL directly. * **Mechanism**: The Swapper Engine orchestrates the conversion:\ **EURC → euTBL → EUR0** (on-chain order mechanism, similar to the USD0 ↔ USDC implementation). * **Execution model**: **Non-atomic** (may not settle in the same transaction): * **T0**: Instant processing within the limits of available **EURC** and **euTBL** liquidity. * **T+1 to T+5**: Possible if buffers/loopers are empty. The dApp shows **pending order**, **queue position**, and **Looper liquidity**. **Secondary markets** (Spiko ATM v2, DEX pools) can be used as alternatives. * **Cancellation & availability**: * **Cancelability**: Orders can be **cancelled** as long as they are not executed. * **UI states**: **Pause**, **cap reached**, or **insufficient collateral** are clearly indicated. * **Notification**: Users are notified upon execution. In this flow, a **Collateral Provider (CP)** supplies the underlying RWA collateral on the user’s behalf, as in the USD0/USDC path. *** ## Secondary Liquidity EUR0 is also tradable on secondary markets. As deployment expands, liquidity will be incentivized against other assets in the Usual ecosystem, especially **USD0,** to support an on-chain FX market. * **Target pools**: **EUR0/EURe**, **EUR0/USD0** The **EUR0/USD0** pool is central to Usual’s long-term plan to build **clearFX** (described in the V2 roadmap): an on-chain currency conversion layer enabling euro-to-dollar swaps within the ecosystem. This supports the protocol’s broader ambition to become a **DeFi Fintech** offering multi-currency accounts and payment infrastructure. > **Important**: Usual Protocol does not guarantee secondary market liquidity or the EUR0 peg on secondary venues. Peg stability relies on arbitrage between primary market mint/redemption (at par) and secondary market pricing, consistent with the USD0 stability model. *** ## Collateral & Reserves ### Reserve asset: euTBL (Spiko) | Property | Detail | | ------------------------ | --------------------------------------------------------- | | **Asset** | euTBL (Spiko EU T-Bills Money Market Fund) | | **Type** | Short-term EUR money market fund (VNAV) | | **Underlying** | Euro area T-Bills (France, Germany, etc.) | | **Maximum maturity** | < 6 months | | **Average duration** | < 60 days | | **NAV publication** | Daily, on-chain (Chainlink oracle) and at official venues | | **Auditor** | PwC | | **Smart contract audit** | Trail of Bits | | **Regulatory status** | Spiko is approved and supervised | | **Access control** | ERC-20 with allowlist/KYC management (Permission Manager) | **Implication for EUR0**: Each EUR0 in circulation corresponds to **€1 of euTBL value**, measured at NAV and managed through the mint/redeem flows described above. ### Collateral eligibility EUR0 follows the same due diligence framework as USD0, adapted to Eurozone assets: * **Fully collateralized (1:1)**: No leverage and no fractional reserves. Every EUR0 is backed by euTBL at par value. * **Low risk**: Exposure is limited to sovereign bonds from high-quality Eurozone issuers. * **Transparent**: Collateral is verifiable: * **On-chain** via Chainlink price feeds * **Off-chain** via PwC audits and daily NAV publication * **Liquid**: Short maturity profile (**< 6 months**, average duration **< 60 days**) aligns with Usual’s portfolio duration threshold for LDTs. * **Zero FX risk**: Collateral is entirely **EUR-denominated**, consistent with Usual’s zero-tolerance FX risk policy. * **Zero credit risk (policy)**: Holdings are restricted to **Eurozone sovereign debt**; **corporate debt is prohibited**. ### Spiko as collateral provider Spiko is the tokenizer for EUR0’s collateral, analogous to Hashnote’s role for USD0. Usual’s tokenizer evaluation process covers: * **Structuring & regulation**: Spiko operates under regulatory supervision with a clear legal framework for tokenized securities. * **Asset protection**: Assets are ring-fenced in the event of Spiko bankruptcy. * **Fee structure**: Fees are designed to remain reasonable and not materially erode returns. * **Redemption process**: Prompt and straightforward; the **3 bps** redemption fee is the only cost on the direct path. * **Security**: Contracts audited by **Trail of Bits**, with ERC-20 allowlist/KYC management via a Permission Manager. *** ### V2 vision: multi-currency accounts EUR0 is a core component of the V2 roadmap, which envisions a **USUAL Mobile App** as a single interface for: * **Multi-currency accounts** (USD0 & EUR0) * **USUAL IBAN** for traditional banking integration * **clearFX** for on-chain EUR ↔ USD conversion via EUR0/USD0 pools * **USUAL Credit Card** supporting both euro and dollar denominations *** ## EUR0 vs. USD0: Key Differences | Feature | EUR0 | USD0 | | ------------------------ | ---------------------------------- | ---------------------------------- | | **Currency peg** | €1.00 (Euro) | $1.00 (US Dollar) | | **Collateral** | Eurozone sovereign T-Bills (euTBL) | US Treasury Bills (USYC, M, USTBL) | | **Primary tokenizer** | Spiko | Hashnote | | **Indirect mint asset** | EURC | USDC | | **Redemption fee** | 3 bps | Varies by governance | | **Regulatory framework** | EU-supervised (Spiko) | CIMA/CFTC (Hashnote) | | **NAV oracle** | Chainlink (daily) | On-chain real-time | | **Average duration** | < 60 days | < 0.33 years (\~120 days) | *** ## Risk Considerations EUR0 inherits Usual’s risk framework, with Eurozone-specific considerations: * **Interest rate risk**: Mitigated by short average duration (**< 60 days**), well within Usual’s **0.33-year** portfolio duration threshold. * **Sovereign credit risk**: Diversified across multiple Eurozone issuers (France, Germany, etc.), all with high credit ratings. * **Counterparty risk**: Spiko is regulated, audited by **PwC**, and its smart contracts are audited by **Trail of Bits**. Assets are ring-fenced against Spiko bankruptcy. * **Liquidity risk**: The short-term VNAV structure and Spiko’s redemption infrastructure support timely exits. * **Secondary market risk**: The secondary-market peg is not guaranteed; stability depends on arbitrage between primary and secondary markets (as with USD0). # Yield Products ## From USD0 to Yield Products Once minted, USD0 can be routed into multiple products and DeFi integrations: ``` ┌─────────────────────┐ │ RWA Collateral │ │ (USYC, M, USTBL...) │ └─────────┬───────────┘ │ DaoCollateral / SwapperEngine │ ▼ ┌─────────────────────┐ │ USD0 │ │ (Liquid Deposit │ │ Token) │ └─────────┬───────────┘ │ ┌────────────┬────────┼─────────┬───────────┐ ▼ ▼ ▼ ▼ ▼ ┌─────────┐ ┌────────┐ ┌───────┐ ┌──────┐ ┌────────┐ │ bUSD0 │ │ sUSD0 │ │ USD0a │ │ DeFi │ │ LPs │ │ (Bond) │ │(Saving)│ │(Alpha)│ │(Lend)│ │(Curve) │ └────┬────┘ └────────┘ └───────┘ └──────┘ └────────┘ │ Daily USUAL coupons │ ▼ ┌─────────┐ │ USUAL │ ── stake ──▶ USUALx ──▶ Revenue Switch (USD0) └─────────┘ ``` ### Yield Mechanisms Users can mint stablecoins or buy them on the secondary market. They then choose a yield strategy: * **Lock USD0 into bUSD0** to **earn daily USUAL** coupon rewards. * Deposit **USD0 into the Savings Account** to receive **sUSD0, a yield-accruing token** whose value increases over time. * Mint USD0a using USD0 to gain exposure to delta-neutral strategies. * Liquidity providers earn USUAL through LP allocation buckets. # USD products ## Yield and Product Ecosystem USD0 itself is **non‑yield‑bearing**. Yield is accessed through Usual’s product layer: | Product | Description | Yield Source | Paid As | Collateral | Key Risks | | --------- | -------------------------------------- | --------------------------------------------------------------- | ----------------------------------------- | ---------------------------------------------------------- | ------------------------------------------------------------------ | | **sUSD0** | Savings wrapper on USD0 | USD0 collateral yield (T-bills / overnight secured repo) | In-kind, in USD0. | USD0 | USD0 stack (custody/settlement), smart-contract, governance/params | | **USD0a** | Higher-yield, “market-neutral” product | BTC/ETH cash-and-carry (dated futures basis) + liquidity buffer | In-kind in USD0a | USCC (delta neutral strategy) + USTB (T-bill) /USDC buffer | Basis/unwind, margin/clearing, counterparty/ops, redemption delays | | **bUSD0** | Bond-like lock until maturity | Incentives in USUAL | USUAL (coupons) + 1:1 in USD0 at maturity | Locked USD0 | USUAL price, lock-up/liquidity, protocol/gov, USD0 risk | The yield generated by USD0's underlying T‑Bill collateral (approximately **$5.5–6M/year** at current TVL) is core protocol revenue and is distributed to **locked USUALx holders** (30%) and the **DAO treasury** (70%) via the **Revenue Switch** mechanism. # USD0 Savings (sUSD0) sUSD0 is the savings token for USD0, implemented as a **non-rebasing ERC-4626 vault**. It turns USD0 from a settlement stablecoin into a yield-accruing savings instrument that is **composable, transparent, and fully on-chain**. Users deposit USD0 into a permissionless vault and receive sUSD0 shares in return. **sUSD0 balances do not rebase**; instead, value accrues through an **exchange rate that increases over time**. As a result, redeeming sUSD0 returns **more USD0 than initially deposited** (assuming positive yield over the holding period). Yield originates from the protocol’s underlying collateral stack, sovereign US Treasury Bills and other short-term yield-bearing assets, and is passed through to sUSD0 holders via the vault’s exchange-rate mechanism. *** ## Key Facts * **Underlying asset:** USD0, the RWA-backed stablecoin at the core of Usual Protocol * **Standard:** ERC-4626 vault (**non-rebasing**, accrual via exchange rate) * **Access:** Permissionless; no KYC/KYB requirement * **Yield source:** Sovereign T-Bills and overnight reverse repos backing USD0 collateral * **Yield distribution:** Controlled via on-chain parameters; the rate may vary with market conditions and DAO decisions * **Redemption math:** `USD0 out = sUSD0 × exchangeRate` (*t* ≥ 1) * **Contract address (Ethereum):** `0xd861bE82dEe3223CFBEd160791f6550b0704D406` *** ## How sUSD0 Works 1. **Deposit** USD0 into the sUSD0 ERC-4626 vault. 2. **Receive** sUSD0 shares representing a proportional claim on the vault’s total assets. 3. **Accrue yield passively** as the **sUSD0↔USD0 exchange rate increases** over time. 4. **Redeem anytime** to unwrap sUSD0 and receive USD0 at the current exchange rate. Because sUSD0 follows the ERC-4626 standard, it is straightforward to integrate across DeFi. Any protocol that supports ERC-4626 can generally support sUSD0 **without custom adapter logic**, simplifying accounting and composability. *** ## Yield Source and Collateral Stack The yield that accrues to sUSD0 traces back to the DAO revenue. ### How yield reaches sUSD0 holders The protocol captures yield generated by the underlying collateral and routes a portion of it to sUSD0 holders by increasing the vault’s **exchange rate** over time. Distribution parameters—including how much yield is allocated to sUSD0 and how quickly it accrues—are adjustable via **USUAL governance**. *** ## sUSD0 vs. USD0 (At a Glance) | Feature | USD0 | sUSD0 | | ------------------ | ----------------------------- | -------------------------------------- | | **Purpose** | Settlement asset | Savings instrument | | **Value behavior** | Pegged 1:1 to USD | Grows via exchange rate | | **Access** | Free mint / redemption | Wrap / unwrap via ERC-4626 vault | | **Use cases** | Payments, collateral, trading | Yield generation, DeFi integration | | **Design** | Rebase-free stablecoin | ERC-4626 wrapper (non-rebasing shares) | *** ## sUSD0 vs. the Bond Product (bUSD0) Usual Protocol offers two distinct ways to earn yield on USD0, each aligned to different risk profiles and time horizons: | Feature | sUSD0 | bUSD0 | | ---------------------- | ------------------------------------------- | ---------------------------------------------------- | | **Mechanism** | ERC-4626 vault; exchange-rate accrual | Liquid bond; daily USUAL token coupons | | **Lock-up** | None — deposit and withdraw freely (3bips) | Bond with maturity date (June 2028) | | **Yield denomination** | USD0 (real yield) | USUAL tokens (alpha yield) or Base Yield Guarantee | | **Yield type** | Predictable, T-Bill-based | Variable; dependent on USUAL token price | | **Early exit** | Instant redemption at current exchange rate | Secondary-market sale or recombination with rt-bUSD0 | | **DeFi composability** | High (ERC-4626 standard) | High (tradeable ERC-20; usable as collateral) | **sUSD0** is designed for users seeking **stable, predictable yield** denominated in USD0, with no lock-up and no direct exposure to token price volatility. **bUSD0** is designed for users willing to commit capital for potentially higher returns driven by USUAL emissions and bond discount dynamics. *** ## Benefits * **Predictable yield:** Transparent accrual via a rising exchange rate, backed by sovereign instruments * **Stable collateral base:** Short-duration sovereign exposure (portfolio average duration **< 0.33 years**) * **Non-rebasing design:** DeFi-friendly for pools, lending markets, and integrations that prefer fixed balances * **Permissionless access:** Fully on-chain deposit and redemption—no intermediaries * **Governance-aligned:** Yield distribution parameters adjustable via USUAL governance * **Real yield in USD0:** Returns are denominated in USD0 and sourced from real-world fixed-income instruments (not primarily token emissions) *** ## Rebasing Track USD0 also supports a **rebasing mode**, where yield is distributed directly to **USD0 balances** at the “cash layer.” This is part of Savings but lives on USD0 itself (not as a separate token). It is suitable for applications that prefer native balance growth over ERC-4626 wrappers, for example, wallets or payment interfaces where users expect their USD0 balance to increase automatically without wrapping into a vault token. *** ## Contract Information | Contract | Address (Ethereum) | | --------------------- | -------------------------------------------- | | **sUSD0** | `0xd861bE82dEe3223CFBEd160791f6550b0704D406` | | **USD0 (underlying)** | `0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5` | # USD0 Alpha (USD0a) **USD0a** is the enhanced‑yield mode of **USD0**: a market‑neutral, value‑accruing USD savings instrument built on Usual Protocol’s stablecoin infrastructure. USD0a is constructed on a **CME‑listed dated futures basis strategy** (**long spot, short dated futures**). It does **not** rely on perpetual futures funding rates and does **not** take directional crypto exposure. Instead, yield is driven primarily by the **structural convergence of dated futures prices toward spot at maturity** (i.e., “basis” carry), which is generally more predictable than volatile perp funding. Users mint USD0a using **USD0 or USDC**. USD0a is **non‑rebasing**: its value accrues through an increasing on‑chain `exchangeRate`. Over time, **1 USD0a redeems for more USD0**, enabling redemption back into **USDC** at higher amounts as the underlying NAV grows. USD0a is **fully on‑chain**, **permissionless**, and designed to be transparent and composable as a USD savings primitive. *** ## Key Facts * **Collateral composition** * **90% USCC** — a regulated basis‑carry fund (long spot BTC/ETH, short **CME dated futures**) * **10% USTB + USDC** — U.S. Treasury Bills (via Superstate) and cash‑equivalents, serving as a liquidity buffer * **Design**: **Non‑rebasing**, **exchange‑rate accrual** (similar to how **USUALx** appreciates vs **USUAL**) * **Access**: Fully permissionless — **no KYC/KYB** * **Yield source**: **CME BTC/ETH basis carry** + **T‑Bill yield** * **Value growth**: `exchangeRate(t) ≥ 1` — the exchange rate **only increases over time** as NAV grows * **Redemption**: `1 USD0a → USD0 × exchangeRate(t)` — redeemable for USD0 at the current exchange rate * **Redemption cycle**: Up to **7 days**, with an approximately **10% instant liquidity buffer** for smaller redemptions *** ## How It Works 1. **Mint** * Convert **USDC or USD0** into **USD0a**. * Funds are allocated across: * **USCC** (Superstate’s basis‑carry fund), and * a **USTB + USDC** liquidity buffer. 2. **Receive** * You receive **USD0a tokens immediately**, representing a proportional claim on the underlying reserves. 3. **Accrue** * Yield accrues passively as the underlying **NAV increases**, which is reflected entirely through a rising on‑chain `exchangeRate`. * No claiming, no manual compounding: the token’s redemption value increases over time. 4. **Redeem** * Redeem at any time to receive **USDC plus accrued yield**. * **Smaller redemptions** may be fulfilled instantly from the **USDC buffer**. * **Larger redemptions** settle within up to **7 days**, as underlying positions unwind. This structure provides a transparent, on‑chain, market‑neutral USD savings instrument—extending the USD0 ecosystem beyond T‑Bill yield into enhanced‑return territory. *** ## Benefits * **Predictable carry** * Yield is driven by **dated‑futures convergence toward spot at maturity**—a structural, well‑understood mechanism—rather than volatile perpetual funding rates. * **Market‑neutral** * The **long spot / short futures** construction minimizes directional exposure to BTC and ETH price movements. * **Value‑accruing by design** * All yield is reflected through the increasing `exchangeRate`, visible on‑chain. * **Permissionless access** * Open minting and redemption with no access restrictions, consistent with Usual’s permissionless DeFi infrastructure. * **Liquidity and stability buffer** * The **10% USTB + USDC** allocation provides a liquidity cushion backed by short‑duration U.S. Treasury Bills and cash‑equivalents—the same asset class underpinning USD0. * **DeFi‑compatible** * The non‑rebasing, exchange‑rate model simplifies integration with lending markets, DEXs, and yield aggregators (no rebase accounting complexity). *** ## USD0 vs. USD0a | Feature | USD0 | USD0a | | ---------------- | ----------------------------------- | ------------------------------ | | **Purpose** | Settlement asset / stablecoin | Enhanced‑yield savings mode | | **Value** | Pegged **1:1** to USD | Grows via `exchangeRate` | | **Access** | Free mint / redemption | Mint via **USDC/USD0 vault** | | **Yield source** | T‑Bills / MMFs (via RWA collateral) | **CME basis carry + T‑Bills** | | **Design** | Stablecoin (pegged) | Market‑neutral, value‑accruing | USD0a complements the broader Usual suite: * **USD0** is the stable, RWA‑backed settlement layer. * **bUSD0** is the **Liquid Bond Token** (formerly **USD0++**), which locks USD0 for USUAL coupon yield. * **USD0a** provides a third path: **enhanced USD‑denominated yield** via a market‑neutral basis strategy—without token locking, exposure to USUAL emissions, or reliance on funding‑rate markets. *** ## Relationship to the Usual Ecosystem USD0a sits within Usual’s **Product Offerings Layer**, alongside **bUSD0** (Liquid Bond Token), **sUSD0** (Savings USD0), and the **USUAL/USUALx** governance and staking stack. * **bUSD0** generates yield through **daily USUAL token coupons** tied to T‑Bill revenue. * **sUSD0** provides a wrapped yield‑bearing USD0 position. * **USD0a** generates yield from an independent source: the **CME dated futures basis trade**, diversifying protocol yield beyond core RWA collateral. As a **non‑rebasing, exchange‑rate‑accrual** token, USD0a follows the same design pattern as **USUALx** (where the USUALx:USUAL exchange rate appreciates as staking rewards accrue). This makes USD0a immediately familiar to existing Usual users and straightforward to integrate across DeFi. *** ## Risks * **Liquidity / forced unwind risk**: large redemptions can force early unwind/roll of the carry trade, crystallizing losses or giving up expected carry. * **Basis dislocation risk**: even if Δ-neutral, the basis can gap/widen in stress potentially leading to mark-to-market drawdowns and worse exits (could create impermanent losses which resorb by itself at maturity,). * **Redemption timing risk**: redeem anytime but can take up to \~7 days; only \~10% is intended as an instant buffer, exits may be delayed under stress. * **Counterparty / execution-chain risk**: reliance on USCC + TradFi custody/clearing/settlement/ops introduces operational and counterparty failure modes. * **On-chain wrapper risk**: smart-contract bugs plus admin/upgrade/parameter changes affecting exchange-rate accounting or redemption paths. # USD0 Bond (bUSD0) Bond USD0 (**bUSD0**) is the bonded, yield-bearing form of the **USD0** stablecoin. It functions as a **liquid bond**: USD0 is locked until a fixed maturity date, while **daily USUAL token rewards (“coupons”)** are distributed to bUSD0 holders. bUSD0 is the first Bond Token in the Usual Protocol ecosystem. On the primary market, each bUSD0 is minted alongside a separate **Redemption Token**, **rt-bUSD0**, which represents the right to exit bUSD0 early at par. This two-token design isolates and tokenizes the early-exit right, allowing users to choose how they balance **yield** (bUSD0) and **liquidity/optional exit** (rt-bUSD0). > **UIP-12 migration:** Following **UIP-12**, legacy **USD0++** holders were automatically migrated to **bUSD0**. They continue to earn USUAL rewards. Because rt-bUSD0 was not issued retroactively, migrated users can purchase rt-bUSD0 on the secondary market if they want early-exit optionality. *** ## Key Facts * **Underlying collateralization:** bUSD0 is backed **1:1 by USD0**, which is locked until maturity. * The current bUSD0 series matures on **11 June 2028**. * **Token design (bUSD0):** Non-rebasing, fixed-notional ERC-20. * Redeemable **1:1 into USD0 at maturity**. * **Token design (rt-bUSD0):** ERC-20 representing a **pure redemption right** on bUSD0. * **No yield**, **no governance**, fully tradable. * **Access:** Permissionless minting and redemption via the dApp. * **Yield source (bUSD0):** Daily USUAL coupons distributed to bUSD0 holders, funded by protocol revenue generated from the **T-Bill collateral backing USD0**. * **Primary minting:** * `1 USD0 → 1 bUSD0 + 1 rt-bUSD0` * Legacy USD0++ → bUSD0 rename only (**no rt-bUSD0** issued retroactively). * **Early redemption (before maturity):** * `1 bUSD0 + 1 rt-bUSD0 → 1 USD0` * Both tokens are burned upon redemption. * **Maturity redemption:** * At maturity: `1 bUSD0 → 1 USD0` (rt-bUSD0 not required). * **Redemption cycle:** Instant on-chain redemption, subject to protocol and liquidity conditions. *** ## Contract Addresses | Token | Chain | Address | | -------- | -------- | -------------------------------------------- | | bUSD0 | Ethereum | `0x35D8949372D46B7a3D5A56006AE77B215fc69bC0` | | rt-bUSD0 | Ethereum | `0x82DCA22b48B14DE38ccf83B03330120c4b8acFe9` | | bUSD0 | Arbitrum | `0x2B65F9d2e4B84a2dF6ff0525741b75d1276a9C2F` | *** ## Why bUSD0 Uses Two Tokens (bUSD0 + rt-bUSD0) This structure separates two distinct economic components: * **bUSD0 = yield + principal at maturity**\ Holds the bonded position and receives daily USUAL coupons. * **rt-bUSD0 = early-exit right**\ Holds the right to “unlock” early at par by recombining with bUSD0. ### Benefits * **Separation of yield and liquidity:** bUSD0 captures USUAL rewards and long-term carry; rt-bUSD0 isolates the early-exit option. * **Market-based liquidity:** users who need flexibility can buy rt-bUSD0; users comfortable with lock-up can sell rt-bUSD0 and potentially capture a premium. * **Composability:** both tokens are standard ERC-20s, enabling DEX pools, structured products, and DeFi integrations (e.g., Pendle for yield/principal separation, Morpho for lending collateral, Euler for USL leverage, Curve for liquidity provision). * **Simple on-chain mechanics:** * `1 USD0 → 1 bUSD0 + 1 rt-bUSD0` (primary mint) * `1 bUSD0 + 1 rt-bUSD0 → 1 USD0` (early redemption) * `1 bUSD0 → 1 USD0` at maturity * **User choice:** * **Max yield:** sell rt-bUSD0 * **Max flexibility:** hold rt-bUSD0 * **Mixed exposure:** hold/sell partially depending on liquidity needs *** ## Minting bUSD0 (Primary Market) ### Step 1 — Mint bUSD0 + rt-bUSD0 Convert USD0 into bUSD0 via the dApp. For each **1 USD0** deposited, the protocol mints: * **1 bUSD0** (bonded position earning USUAL), and * **1 rt-bUSD0** (early-exit right). ### Step 2 — Choose your exposure You can then manage liquidity/yield by deciding what to do with rt-bUSD0: 1. **Flexible:** hold both bUSD0 and rt-bUSD0 to retain early-exit optionality. 2. **Bonded:** sell rt-bUSD0 on secondary markets to enhance effective yield while committing to the lock until maturity. ### Step 3 — Accrue yield While bUSD0 is outstanding, holders receive **daily USUAL coupons**, reflecting the protocol’s incentive schedule and the yield design described below. > **Mint routing optimization:** If bUSD0 trades below parity on secondary markets (e.g., the Curve USD0/bUSD0 pool), the protocol may route deposits through the secondary market rather than the primary mint. This allows users to receive **more bUSD0 per USD0**, while the resulting buy pressure helps restore the bUSD0 price toward par. *** ## Redeeming bUSD0 ### Before maturity (early exit) You have multiple options: 1. **Redeem at par via recombination (primary):**\ Combine `1 bUSD0 + 1 rt-bUSD0` to redeem **1:1 into USD0**. 2. **Exit on the secondary market:** * Sell **bUSD0**, or * sell **rt-bUSD0** (keeping bUSD0 and its coupon stream). 3. **Primary market floor redemption (no rt-bUSD0):**\ If enabled by DAO governance, redeem bUSD0 at the protocol-defined floor. * Current floor: **0.92 USD0 per bUSD0** ### At maturity At maturity, you can redeem bUSD0 alone: * `1 bUSD0 → 1 USD0` (rt-bUSD0 not required) *** ## Yield Mechanism bUSD0 yield is paid as **daily USUAL token coupons** distributed automatically to bUSD0 holders. *** ## Post-Disinflation Yield Structure (January 2026+) Following the **UIP-11 disinflation shock**, yield behavior depends on where bUSD0 is held: | Position Type | Daily USUAL | Yield Model | | -------------------- | ----------------- | --------------------------------------------------------------------------------------------------------------------------- | | bUSD0 in USL (Euler) | 0 | Pure zero-coupon bond — yield comes from the discount to par (\~2.9% APR at $0.92 floor, up to \~45% APR with max leverage) | | bUSD0 outside USL | 127,718 USUAL/day | Standard USUAL coupon distribution | *** ## Early Exit Options (Summary) | Method | Value Received | Retains Yield | Requires rt-bUSD0 | | -------------------------------- | ------------------------------- | -------------------- | ----------------- | | Recombination (primary) | 1 USD0 | No | Yes | | Sell rt-bUSD0 (secondary) | Market price of rt-bUSD0 | Yes (on bUSD0) | N/A (selling it) | | Sell bUSD0 (secondary) | Market price of bUSD0 | No | No | | Floor price redemption (primary) | 0.92 USD0 (current DAO setting) | No | No | | Hold to maturity | 1 USD0 (guaranteed) | Yes (until maturity) | No | *** ## USL (Euler Fixed Rate Market) bUSD0 can be used as collateral in the **Usual Stability Loan (USL)** on Euler. | Parameter | Value | | --------------------------------- | --------------------------------------- | | LTV | 0.88 | | LLTV (liquidation) | 0.9999 | | Oracle | Hardcoded 1:1 (bUSD0 → USD0) | | Vault type | Ungoverned (immutable after deployment) | | Borrowing fee (post-disinflation) | 1,50% per year | **Collateral safety constraint:** Only USD0 that is **not** used to collateralize bUSD0 can be allocated to USL vaults. This is enforced by smart contract infrastructure to prevent undercollateralization. *** ## UZM (Fira Fixed Rate Market) bUSD0 can be used as collateral in the **Usual Zero Rate Market (UZR)** on Fira. | Parameter | Value | | --------------------------------- | --------------------------------------- | | LTV | 0.88 | | LLTV (liquidation) | 0.9999 | | Oracle | Hardcoded 1:1 (bUSD0 → USD0) | | Vault type | Ungoverned (immutable after deployment) | | Borrowing fee (post-disinflation) | 0,1% per year | | | | *** ## Risks * **Maturity / lock-up**: 1:1 USD0 only at 11 Jun 2028; early exit depends on rt-bUSD0 or secondary market (can be below par). * **Coupon risk**: coupons are paid in USUAL, realized yield depends on USUAL price and incentive settings. * **Liquidity / discount**: bUSD0 / rt-bUSD0 can trade at discounts; spreads can widen in stress. * **Governance / rule changes**: DAO can change parameters; redemptions depend on protocol/liquidity conditions. * **Protocol + USD0 stack**: smart-contract/upgrade risk + underlying USD0 collateral/custody/settlement risk. # Usual Zero Rate (Fira) Usual Stability Loans (USL) & Usual Zero Rate (UZR) are a DAO-operated, fixed-rate lending facility built on Euler & Fira. It allows users to borrow USD0 against bUSD0 collateral. ## Market Parameters | Parameter | Value | | ---------------------------- | --------------------------------------------- | | Collateral asset | bUSD0 (Bonded USD0) | | Loan asset | USD0 | | Base borrowing rate | 0% | | Protocol fee | 0.10% APR (10 bps) | | LTV | 88% | | LLTV (Liquidation threshold) | 99.99% | | Oracle | Fixed-price 1:1 (bUSD0/USD0) | | Maturity | June 11, 2028, 11:30 UTC | | Chain | Ethereum Mainnet | | Interest rate contract | Immutable — cannot be changed post-deployment | ## How It Works 1. **Deposit** bUSD0 as collateral into the UZR market. 2. **Borrow** up to 88% of the collateral value in USD0. 3. **Accrue** a 0.10% APR fee continuously on outstanding debt. 4. **Repay** debt at any time before maturity to recover collateral. The borrowing cost is set at deployment and cannot change. The interest rate strategy contract is immutable once the market is created. ## Oracle Design UZR uses a **fixed-price oracle** that values bUSD0 at a constant 1:1 ratio with USD0 for all LTV calculations. This is a deliberate design choice: * **Benefit**: Consistent borrowing capacity regardless of secondary market price fluctuations. Higher effective leverage compared to mark-to-market oracles. * **Assumption**: If bUSD0 trades below 1 USD0 on secondary markets, the protocol still values it at 1. This trust assumption is accepted given bUSD0's redemption guarantee at maturity. ## Fee Structure The 0.10% APR fee accrues continuously on outstanding debt — not per borrow event. All fees route directly to the Usual Treasury. | | Euler (USL) | Fira (UZR) | | --------------- | ---------------- | -------------- | | Borrow rate | \~1.5–2% | 0% + 0.10% fee | | Max leverage | \~8.1x | \~12.3x | | Fee destination | Euler + external | Usual Treasury | | Oracle | Mark-to-market | Fixed 1:1 | ## Lending Side The Usual DAO is the sole lender on UZR. The DAO sets lending caps and supplies USD0 directly. Individual users cannot lend on this market. This design gives the DAO full control over exposure while routing all protocol revenue to the Usual Treasury. ## Migration from Euler Migration from USL (Euler) to UZR (Fira) is executed through a dedicated migrator contract in a single atomic transaction: 1. DAO enables migration capacity (makes USD0 borrowable against U0R). 2. bUSD0 collateral is withdrawn from Euler. 3. bUSD0 is posted as collateral on UZR. 4. USD0 is borrowed on UZR at the same effective LTV (88% ceiling). 5. Borrowed USD0 repays the Euler debt. 6. The Euler loan token is burned as the position closes. Migration is **opt-in**. Euler remains available; positions are not forced to migrate. No additional protocol fees are charged beyond gas costs. ## Available Features UZR supports all Fira protocol-level features: * **Borrow & Repay** — Deposit bUSD0, borrow USD0, repay before maturity * **Leverage Loop** — Recursive borrowing to amplify exposure to the bUSD0 discount-to-par convergence (up to \~12.3x) * **Multiply** — One-click leverage loop via a slider interface ## Technical Reference | Detail | Value | | ------------------ | -------------------------------------------------------------------- | | Market ID | `0xA597B5A36F6CC0EDE718BA58B2E23F5C747DA810BF8E299022D88123AB03340E` | | IRM contract | `0xdfCF197B0B65066183b04B88d50ACDC0C4b01385` | | Oracle contract | `0x30Da78355FcEA04D1fa34AF3c318BE203C6F2145` | | Lending market | `0xa428723eE8ffD87088C36121d72100B43F11fb6A` | | USD0 (loan token) | `0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5` | | bUSD0 (collateral) | `0x35D8949372D46B7a3D5A56006AE77B215fc69bC0` | ### Risks Multiply amplifies both upside and downside. Higher leverage means higher exposure to the following risks: #### No Liquidation Before Maturity UZR uses a fixed 1:1 oracle (bUSD0/USD0) and sets the liquidation threshold (LLTV) at 99.99%, far above the 88% maximum borrow LTV. Since the oracle price never moves, only interest accrual (0.10% APR) changes the LTV. From 88%, reaching 99.99% would take over a century. Positions cannot be liquidated before maturity. At maturity, the Usual DAO can trigger **forced liquidation** to close remaining positions and enable collateral redemption. This is an intentional design for a maturity-based system, not a penalty — borrowers should repay or close positions before the maturity date. #### Slippage Risk Each loop iteration involves a USD0 → bUSD0 swap on secondary markets. At high leverage levels, the cumulative swap volume increases. Large swaps may incur price impact, especially in low-liquidity conditions. #### Interest Accumulation The 0.10% APR fee accrues on the total debt, not just the initial borrow. A 5x leveraged position accrues fees on 5x the initial collateral value in debt. Over long durations, this compounds. ## Simulator Stress-test UZR parameters, sprice, LTV, maturity, in the live simulator: [simulator.fira.money](https://simulator.fira.money/) ## Related * Markets Overview — How Fira markets work * Liquidations — Position health and liquidation mechanics * UIP-18: UZR Launch — Governance proposal that authorized UZR deployment * Whitepaper: UZR Bootstrapping — Formal specification (Section 6) # EUR products Usual offers several Euro-based yield products, allowing individuals wanting to avoid exposure to Euro-Dollar volatility to invest in Euros. Currently, Usual offers the following products: * EUR0 Savings (sEUR0) * EUR0 Alpha (EUR0a) # EUR0 Savings (sEUR0) **sEUR0** is the savings token for **EUR0**, Usual Protocol’s euro-denominated stablecoin. Built on the **ERC-4626 vault standard**, sEUR0 turns EUR0 from a settlement asset into a **yield-accruing savings instrument** that is **composable, transparent, and fully on-chain**. Users deposit EUR0 into a **permissionless** ERC-4626 vault and receive sEUR0 in return. **sEUR0 balances do not rebase**. Instead, yield accrues via an **exchange rate that increases over time**, so redeeming sEUR0 returns **more EUR0 than initially deposited**. Yield is generated by the protocol’s underlying collateral stack—primarily **European sovereign T-Bills and short-term money market funds (MMFs)**—and is distributed through the vault’s **exchange-rate appreciation** mechanism. *** ## Key Facts * **Underlying asset:** EUR0 * **Standard:** ERC-4626 vault (non-rebasing, accrual-based) * **Access:** Permissionless — no KYC/KYB requirement * **Yield source:** European sovereign T-Bills and short-term MMFs * **Distribution:** Governed via on-chain parameters; rates may vary with market conditions * **Redemption:** `1 sEUR0 → EUR0 × exchangeRate` (where `exchangeRate ≥ 1`) *** ## How sEUR0 Works 1. **Deposit** EUR0 into the vault. 2. **Receive** sEUR0, which represents your share of the vault’s total EUR0-denominated assets. 3. **Accrue yield passively** as the **sEUR0/EUR0 exchange rate** increases over time. 4. **Redeem anytime** to unwrap sEUR0 and receive EUR0 (principal + accrued yield). Because sEUR0 follows the ERC-4626 model, integrations across DeFi are straightforward—improving **accounting, interoperability, and yield distribution**. Any protocol that supports **ERC-4626 vaults** can integrate sEUR0 natively. *** ## EUR0 in the Usual Ecosystem **EUR0** is Usual Protocol’s euro-denominated **Liquid Deposit Token (LDT)**, collateralized by high-quality Eurozone assets. It extends Usual’s multi-currency vision beyond the USD-denominated **USD0** by applying the same core infrastructure—the **Usual Collateral Bridge Infrastructure (UCBI)**—to **euro-denominated real-world assets**. As USD0 is backed by US Treasury Bills, **EUR0 is backed by short-duration European sovereign bonds and money market instruments**, following the same collateral eligibility principles used across the protocol: * **Fully collateralized:** No leverage and no fractional reserves * **Low risk posture:** Sovereign-grade, short-duration instruments only * **Transparent:** On-chain verifiable with frequent off-chain audits * **Liquid by design:** Portfolio duration maintained below established thresholds The introduction of EUR0 reflects the protocol’s **LDT scalability vision** described in the litepaper: the Liquid Deposit Token concept is designed to be extendable to additional asset classes, positioning Usual as a DeFi integration layer across multiple currencies and regions. *** ## Benefits of sEUR0 * **Predictable accrual mechanics:** Value grows through exchange-rate appreciation (no rebases, no manual claiming) * **Euro-native yield source:** Short-duration European sovereign exposure designed for euro-denominated savings * **Non-rebasing design:** Compatible with DeFi primitives (LP positions, lending, aggregators) without balance-tracking complexity * **Permissionless access:** On-chain deposit and redemption with no gatekeeping * **Governance oversight:** Vault parameters are adjustable via **USUAL governance**, aligning yield distribution with community control *** ## EUR0 vs. sEUR0 (At a Glance) | Feature | EUR0 | sEUR0 | | ------------- | ----------------------------- | ---------------------------------- | | **Purpose** | Settlement asset | Savings instrument | | **Value** | Pegged 1:1 to the euro | Grows via exchange rate | | **Access** | Free mint / redemption | Wrap / unwrap via vault | | **Use cases** | Payments, collateral, trading | Yield generation, DeFi integration | | **Design** | Rebase-free stablecoin | ERC-4626 wrapper | *** ## Rebasing Track (EUR0 Base Layer) EUR0 also includes a **rebasing mode at the base layer**, where yield is distributed directly to **EUR0 balances**. This track is part of the savings architecture but **remains on EUR0 itself**—it is **not a separate token**. This rebasing mode supports use cases that require **native balance growth without vault interaction**, such as: * Simple wallet-based savings * Integrations where ERC-4626 vault mechanics are not suitable *** ## Relationship to sUSD0 sEUR0 mirrors the design of **sUSD0** (Savings USD0), the yield-bearing wrapper for USD0. Both products use the same ERC-4626 vault pattern: * Deposit the base stablecoin (EUR0 or USD0) into a permissionless vault * Receive a non-rebasing receipt token (sEUR0 or sUSD0) * Accrue yield from underlying collateral via exchange-rate appreciation * Redeem at any time for the base stablecoin plus accrued yield This consistent architecture across currencies simplifies DeFi integrations and provides a familiar savings experience regardless of denomination. *** ## Collateral & Risk Management EUR0 collateral follows the same **multi-layered risk management framework** applied to USD0, adapted for Eurozone assets: * **Interest rate risk:** Managed via short-duration instruments and strict portfolio duration limits * **FX risk:** Zero tolerance — only EUR-denominated assets or fully EUR-hedged positions are accepted * **Credit risk:** Zero tolerance — restricted to sovereign and quasi-sovereign instruments; corporate debt is prohibited * **Liquidity risk:** Limited to assets redeemable within established timeframes with minimal slippage Collateral selection and risk parameters are governed by the **Usual DAO**, with **USUAL token holders** voting on eligible Eurozone RWA providers and acceptable asset types. *** ## Summary sEUR0 converts EUR0 into a **yield-accruing, ERC-4626-based savings instrument** that is composable, transparent, and fully on-chain. It serves as the foundation for **euro-denominated savings** in the Usual ecosystem, extending Usual’s real-world asset infrastructure to Eurozone markets with the same rigor and community-first governance model that underpins USD0 and sUSD0. # EUR0 Alpha (EUR0a) Soon # Vaults ## Why Vaults? bUSD0 is a composable product designed to access DeFi opportunities while preserving its productive nature. With **Usual Vaults**, bUSD0 holders can deposit bUSD0 directly into Vaults and gain exposure to integrated external strategies **in addition to** bUSD0’s ongoing USUAL token rewards. This integration delivers three outcomes: * **Stronger demand for bUSD0** by adding utility beyond holding to maturity or providing liquidity * **Sustainable revenue for the USUAL DAO** via management and performance fees * **Active deployment into high-yield DeFi strategies**, supporting long-term ecosystem growth and stability As described in the protocol’s product taxonomy, Vaults extend the Liquid Bond Token (LBT) composability principle: bUSD0 can be deployed across DeFi while remaining productive. Vaults formalize that composability into a managed, curated experience. *** ## How Usual Vaults work Vaults leverage partnerships, most notably **Lagoon Finance,** to provide “managed composability.” Each Vault is managed by a **curator**, who is responsible for: * Selecting investment strategies, including Real-World Asset (RWA) opportunities with **T+1 settlement** * Ensuring fair valuation of Vault shares using **oracle pricing** * Reducing front-running risk through **epoch-based settlement** ### Deposit flow (epoch-based) When depositing into a Vault, users convert bUSD0 **1:1 into USD0**. Deposits are processed through an epoch mechanism: 1. **Epoch initialization**\ The first epoch begins at contract initialization. 2. **Deposit request**\ Users submit a deposit request (e.g., `300 bUSD0`) and transfer assets into a secure **silo**. 3. **Settlement**\ The curator calls `settleDeposit`, which: * secures the deposited tokens, and * mints Vault shares at a fair valuation based on current **oracle pricing**. 4. **Optional cancellation (pre-settlement)**\ Before settlement, users can cancel the deposit request and recover their tokens from the silo. ### Withdrawal flow (epoch-based) To redeem Vault shares, users follow this process: 1. **Withdrawal request**\ Users submit a redemption request and place their Vault shares into a **silo**. 2. **Epoch transition**\ The curator updates total assets, closing the current epoch and opening the next. 3. **Redemption settlement**\ The curator executes `settleRedeem`, which burns Vault shares and transfers the equivalent **bUSD0 plus accrued interest** back into the Vault (for user claiming). 4. **Claiming funds**\ Users call `redeem` to transfer the redeemed assets to their wallet. This step is optional, but prompt redemption is generally better for financial optimization. *** ## Vault fees Vaults apply a performance fee only to returns above a base yield (the **reference rate**) set by the DAO (e.g., **4% APY/APR**). For example, the stUSR Vault charges a **20% fee** on yields exceeding this reference rate. | Fee type | Description | Typical rate | | --------------- | ------------------------------------------- | ----------------------------- | | Management fee | DAO retains yield up to the reference rate | Reference rate (e.g., 4% APR) | | Performance fee | Charged on returns above the reference rate | 20% | | Entry/exit fee | None for standard deposit/withdrawal | 0% | This structure ensures the DAO captures a baseline return on Vault capital (supporting the protocol’s insurance fund and treasury operations), while users benefit from outperformance above the reference rate. *** ## Available Vaults ### ustUSR++ Vault The inaugural Vault strategy, the **ustUSR++ Vault**, deploys bUSD0-sourced USD0 into **stUSR** (Resolv’s staked USR token), a delta-neutral yield product. Key characteristics: * **Underlying strategy:** stUSR (Resolv’s staked USR token) * **Yield source:** delta-neutral cash-and-carry strategies, similar in concept to USD0a (Alpha USD0) * **Settlement:** T+1 settlement for RWA-related components * **Performance fee:** 20% on yields above the reference rate * **Curator:** managed by a dedicated Lagoon Finance curator ### Superstate Vault ### Syrup Vault ### Sky Vault *** ## Risk considerations Vaults introduce additional risks compared to holding bUSD0 directly: | Risk category | Description | Mitigation | | ----------------------- | ------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------ | | **Smart contract risk** | Reliance on Lagoon vault infrastructure and underlying protocols introduces smart contract vulnerabilities | Usual Protocol has undergone 20+ audits by leading firms; Lagoon Finance contracts are independently audited | | **Strategy risk** | Strategies (e.g., stUSR) face market risks such as negative perpetual funding rates driven by long/short imbalances | Curator selects proven, audited strategies; diversification across strategy types | | **Counterparty risk** | Exposure to external trading platforms (e.g., exchange hacks) | Use of institutional-grade counterparties; the protocol’s multi-layered counterparty risk framework informs strategy selection | | **Liquidity risk** | Epoch-based settlement can delay withdrawals | Deposits can be canceled before settlement; epoch durations are kept short | | **Curator risk** | Performance depends on curator strategy selection and execution | Curators are vetted; DAO governance can adjust parameters and curator appointments | > **Important:** Vault users should assess these risks against potential returns. Vault strategy yield introduces exposures beyond the conservative collateral profile of USD0’s underlying T-Bill backing, which maintains zero tolerance for credit and FX risk and limits duration to under 0.33 years. ### Holding bUSD0 vs. depositing into a Vault | Feature | Holding bUSD0 | Vault deposit | | ----------------------- | ---------------------------------- | ----------------------------------- | | USUAL daily coupons | ✅ Yes | ✅ Yes | | External strategy yield | ❌ No | ✅ Yes | | Smart contract risk | bUSD0 contract only | bUSD0 + Lagoon + strategy contracts | | Liquidity | Immediate (secondary market) | Epoch-based withdrawal | | DeFi composability | Full (Pendle, Morpho, Curve, etc.) | Limited to the Vault position | | 1:1 maturity redemption | ✅ Guaranteed (June 2028) | ✅ Via bUSD0 redemption at exit | *** ## Key takeaways * **Two yield streams:** bUSD0’s native USUAL rewards plus external strategy returns. * **Epoch-based settlement:** curator-managed epochs support fair valuation and reduce front-running. * **Fee model:** the DAO retains yield up to the reference rate; users earn excess returns minus a \~20% performance fee. * **Risk/reward trade-off:** higher potential yield comes with additional smart contract, strategy, and counterparty risk. * **Pre-settlement cancellation:** users can cancel deposit requests before settlement. * **Powered by Lagoon Finance:** Vaults use Lagoon’s managed vault framework for security and operational efficiency. # Synthetic # ETH0 ## ETH0: An ETH-Pegged Synthetic Backed by wstETH **ETH0** is an **Ethereum-pegged synthetic asset** issued by **Usual Protocol**, **fully collateralized 1:1 by Lido’s wrapped staked ETH (wstETH)**. In practical terms, **1 ETH0 is designed to track \~1 ETH**, backed by actual staked ETH reserves. This lets users, from DeFi natives to institutions, maintain direct ETH exposure while accessing additional protocol incentives on top of conventional staking returns. Like Usual’s **USD0** stablecoin, **ETH0 is permissionless and fully transferable**: anyone can **mint or redeem on-chain** without restrictions. ETH0 is the second **Liquid Deposit Token (LDT)** in the Usual ecosystem, extending the same infrastructure that powers USD0 into the ETH-denominated asset class. *** ## Key Features * **Yield Access (via USUAL)**\ Holding ETH0 unlocks yield mechanisms that allow users to **claim yield in $USUAL tokens**. Staking rewards generated by the underlying **wstETH collateral** are redistributed as **USUAL governance tokens**, increasing effective returns beyond the typical **\~3.0–3.5%** ETH staking yield. * **1:1 ETH Exposure**\ ETH0 is designed to **tightly mirror ETH on a 1:1 basis**, giving holders full ETH upside (and downside) while unlocking additional yield pathways—**without giving up core wstETH exposure**. * **Permissionless & Composable**\ ETH0 follows the same **LDT model** as USD0: permissionless on-chain minting/redemption and seamless integration across DeFi for lending, liquidity provision, and yield strategies. *** ## ETH0 Characteristics * **Liquidity and Composability**\ ETH0 maintains full liquidity and composability within DeFi, following the same model as **USD0** and **bUSD0**. It can be used across lending markets, DEX liquidity pools, and yield protocols. * **Transparency and Trust**\ Real-time reserve transparency is provided by each fund administrator, offering complete on-chain visibility into the collateral backing every ETH0 token. * **Fully Collateralized; Redeemable Anytime**\ ETH0 is fully backed by **wstETH** and builds on USD0’s proven collateral model. There is **no fractional reserve**: every ETH0 is backed **1:1**. * **Higher Yield on ETH (USUAL Emissions)**\ The staking rewards from the wstETH collateral are distributed as **USUAL governance tokens** to ETH0 holders, boosting total returns beyond conventional staking or restaking strategies. *** ## How ETH0 Fits into Usual’s Architecture ETH0 is the second Liquid Deposit Token (LDT) built on the **Usual Collateral Bridge Infrastructure (UCBI)**—the same foundational layer that powers USD0. The litepaper defines the LDT framework as extensible to multiple asset classes: | LDT | Collateral Type | Status | | -------- | ---------------------------------- | ------ | | **USD0** | US Treasury Bills (USYC, M, USTBL) | Live | | **ETH0** | Liquid Staking Tokens (wstETH) | Live | | **EUR0** | Eurozone sovereign assets (euTBL) | Live | Because ETH0 shares core infrastructure with USD0, it inherits the same **minting/redemption mechanics, oracle system, collateral controller, and governance framework** already battle-tested in production. *** ## How ETH0 Works ### Minting & Redemption ETH0 uses the same **1:1 minting and redemption** framework as USD0: ``` Mint: wstETH → Usual Protocol → ETH0 (1:1 in ETH terms) Redeem: ETH0 → Usual Protocol → wstETH (1:1 in ETH terms) ``` * **Direct minting**: deposit wstETH and receive ETH0 at par. * **Redemption**: return ETH0 and receive the underlying wstETH collateral. * **Secondary markets**: ETH0 can be traded on DEXs for immediate liquidity. The **UCBI layer** bridges permissioned and permissionless users. Collateral providers are economically incentivized via **USUAL token rewards**, using the same infrastructure as USD0. *** ## Contract Addresses | Token | Network | Address | | ----- | -------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | ETH0 | Ethereum | *Refer to the* [*Contract Addresses*](https://github.com/Pi-2lavega/usual-gitbook-sync/blob/main/technical/smart-contracts/contract-addresses/README.md) *page for the latest deployment addresses* | *** ## Summary | Property | Detail | | ----------------- | --------------------------------------------------------------- | | **Asset Type** | Ethereum-pegged Liquid Deposit Token (LDT) | | **Collateral** | Lido wstETH (1:1 backing) | | **Native Yield** | \~3.0–3.5% APR (ETH staking) | | **USUAL Yield** | Additional USUAL token emissions on top of native staking yield | | **Minting** | Permissionless, 1:1 deposit of wstETH | | **Redemption** | 1:1 withdrawal of wstETH at any time | | **Bond Variant** | bETH0 (Liquid Bond Token for enhanced yield) | | **Composability** | Full DeFi integration (lending, DEXs, yield protocols) | | **Governance** | Collateral types and parameters governed by USUAL DAO | *** # Collateral and Risk ## Collateral and Risk ETH0 is fully backed by high-quality, Ethereum-native collateral and designed with multiple layers of protection to help maintain a 1:1 relationship with ETH. This page explains ETH0’s collateral model, key risk factors, and the safeguards Usual Protocol uses to keep ETH0 secure and transparent. *** ### Collateral: Wrapped Staked Ether (wstETH) ETH0 is backed **exclusively** by **Lido’s wrapped staked Ether (wstETH)**. wstETH is a **non-rebasing** token representing staked ETH plus accumulated staking rewards. Rather than increasing your token balance, wstETH appreciates over time as Ethereum consensus-layer rewards accrue (i.e., the **wstETH/ETH exchange rate** increases). #### How collateral works When you mint ETH0, the corresponding wstETH is deposited into Usual Protocol’s on-chain **Collateral Treasury**. This collateral is: * **Transparent** — anyone can verify the wstETH balance held by ETH0-related contracts on-chain at any time. * **Fully collateralized** — every ETH0 in circulation is backed by at least **1 ETH worth of wstETH**. There is **no fractional reserve**, **no leverage**, and **no algorithmic minting**. * **Ethereum-native** — wstETH is ultimately backed by ETH staked on Ethereum’s Beacon Chain (via Lido). It is widely used across DeFi and is among the most liquid and battle-tested collateral assets. Using wstETH as the sole collateral means ETH0 can benefit from **Ethereum’s native staking yield** while avoiding traditional finance risks such as bank counterparty risk, FX risk, or credit risk. *** ### Collateral eligibility within the Usual framework Usual Protocol applies strict due diligence to collateral across the ecosystem. The collateral constraints for USD0 (e.g., portfolio duration below **0.33 years** and investment restricted to US Treasury Bills) are specific to fiat-backed designs. ETH0 follows a crypto-native framework tailored to ETH-denominated collateral, while maintaining the same overarching principles: | Principle | ETH0 implementation | | ------------------------ | --------------------------------------------------------------------------------- | | **Fully collateralized** | 1:1 backing by wstETH; no leverage or fractional reserves | | **Low risk** | wstETH is backed by ETH staked via Lido, the largest liquid staking protocol | | **Transparency** | On-chain, real-time verifiable reserves | | **Liquidity** | wstETH is deeply liquid on major DEXs and redeemable for ETH via Lido withdrawals | *** ## Risks and protections ETH0 is designed to track ETH. Its risk profile therefore depends primarily on (1) the underlying staking collateral and (2) the smart contract infrastructure that governs minting, redemption, and custody. Below is a detailed breakdown of key risks and the safeguards in place. *** ### Lido / staking risk A major slashing event, validator performance issues, or a smart contract vulnerability in Lido could impact stETH/wstETH and therefore affect the collateral backing ETH0. #### Protections * **Oracle-based circuit breaker** — a Chainlink oracle monitors the stETH/ETH price feed and can **automatically pause ETH0 minting and redeeming** if an anomaly is detected. This helps stop new activity and limit cascading effects while the issue is assessed. * **Full collateralization** — ETH0 remains 1:1 backed and does not rely on external lenders or leveraged strategies. If staking yield decreases, the design does not introduce reflexive leverage risk. * **Insurance fund** — consistent with Usual Protocol’s approach for LDTs, the DAO can maintain an insurance fund for ETH0, funded by a portion of collateral yield. If collateral value declines, the fund can be used to burn ETH0 and restore the per-token backing ratio, following the same **Counter Bank Run Mechanism (CBR)** used for USD0. *** ### Smart contract risk Like all DeFi systems, ETH0 depends on smart contracts for minting, redemption, and collateral custody. #### Protections * **Audited components** — ETH0 reuses audited infrastructure from the USD0 protocol, which has undergone **20+ audits** by firms including Cantina, Sherlock, Spearbit, Halborn, Hexens, and Paladin. * **Emergency controls** — explicit pause/unpause mechanisms and governance controls enable rapid response to unexpected events. * **Reduced complexity** — ETH0’s single-collateral, fully collateralized design (no leverage, no algorithmic minting) reduces attack surface compared to more complex derivatives. > **Note:** Audits and testing materially reduce risk, but cannot eliminate it. Users should perform their own due diligence. *** ### Market risk (ETH price exposure) ETH0 is pegged to **ETH**, not to a fiat currency. Holding ETH0 is therefore equivalent to holding ETH with respect to market exposure. | Scenario | Impact on ETH0 | | ------------------- | ----------------------------------------------------------------------------------------- | | ETH price drops 20% | ETH0 value drops \~20% in USD terms | | ETH price rises 30% | ETH0 value rises \~30% in USD terms | | ETH remains stable | ETH0 remains stable in ETH terms, and wstETH collateral continues to accrue staking yield | This is by design: ETH0 is a **stable representation of ETH**, not a fiat stablecoin. Users seeking to minimize ETH price volatility should consider a fiat-backed stablecoin such as **USD0** instead. *** ### Liquidity risk As a newer asset, ETH0 may initially have limited liquidity on secondary markets (DEXs, AMMs). #### Protections * **1:1 redeemability; E**ven if trading liquidity is thin, holders can **redeem ETH0 on-chain** for the underlying wstETH via the protocol’s collateral contracts. This provides an on-chain liquidity backstop independent of secondary markets. * **Growing ecosystem integration;** As adoption increases, liquidity is expected to deepen through pools such as **ETH0/wstETH** or **ETH0/ETH**, enabling easier swaps and fee generation for LPs. *** ### Counterparty risk Unlike USD0 (which uses off-chain custodians, fund administrators, and tokenizers for T-Bill collateral), ETH0 has **no traditional finance counterparty exposure**: * No bank custody risk * No fund administrator risk * No tokenizer bankruptcy risk * Collateral remains entirely native to Ethereum The primary counterparty dependency is **Lido**, whose smart contracts manage the underlying staking process. Lido is the largest liquid staking protocol on Ethereum with extensive audit coverage and a long operating track record. *** ## Risk summary | Risk category | Severity | Mitigation | | ------------------------------------ | ----------------------------------- | ---------------------------------------------------------------------------------- | | **Lido / slashing** | Medium | Chainlink circuit breaker, automatic pause, insurance fund, full collateralization | | **Smart contract** | Low–Medium | 20+ audits, reuse of USD0 infrastructure, emergency pause controls | | **ETH market price** | Inherent | By design: ETH0 tracks ETH; not intended for fiat-hedged exposure | | **Liquidity** | Low (expected to decline over time) | Direct on-chain redemption for wstETH; USUAL-incentivized liquidity pools | | **Traditional finance counterparty** | None | Fully on-chain collateral; no bank/custodian/tokenizer dependency | # Governance Token ### Introducing USUAL: A New Standard for Governance Tokens USUAL is the governance and ownership token at the core of the Usual Protocol. It is designed to represent real, revenue-backed ownership, capturing 100% of protocol revenue generated from the Treasury Bill collateral underlying USD0. Rather than relying on speculation alone, USUAL aims to align long-term token value with protocol growth, increasing scarcity and revenue backing per token over time. *** ### USUAL USUAL is the governance and ownership token at the core of the Usual Protocol. Unlike governance tokens whose value is largely driven by speculation, USUAL represents ownership of 100% of protocol revenue—backed by real cash flows generated from the Treasury Bill collateral underlying USD0. *** ### Core Value Proposition #### Real Ownership USUAL represents ownership of 100% of protocol revenue. It is a governance token backed by real cash flows, primarily the yield generated by US Treasury Bills backing USD0. This differentiates it from tokens that rely mainly on narrative. #### Long-Term Value Orientation USUAL is designed to accrue long-term value. Issuance is calibrated to protocol growth, with token emissions structurally kept below revenue growth. Over time, this aims to increase the revenue backing per token. #### Community-Focused Distribution (Original Design) USUAL was designed to be community-first. USUAL tokens are broadly distributed to the community (USD0 holders, liquidity providers, active users, and ecosystem partners). This inverts the typical stablecoin model, where issuers capture the revenue generated by Usual protocole. *** ### Staking Module (USUALx) USUALx is a transferable ERC-20 token representing staked USUAL. It functions as a staking receipt and provides access to governance participation and protocol revenue sharing. *** ### Locking Module The Locking Module enables USUALx holders to lock tokens for fixed periods to earn protocol revenue through the Revenue Switch. Locking is required to receive weekly USD0 revenue distributions. # $USUAL ## The Problem with Most Governance Tokens The DeFi governance token landscape is still dominated by structural design flaws that make it difficult for tokens to hold long-term value: * **Unoptimized “copy‑paste” models:** Many tokens repeat the same template and fail to balance short-term liquidity farming with long-term ownership. Emissions create constant sell pressure that is rarely matched by durable demand, increasing utility, or a credible link to revenue. The pattern is familiar: launch hype → farming-driven inflation → gradual value decay. * **Weak connection between value and governance:** In many protocols, governance rights are not meaningfully connected to the revenues those protocols generate. Tokens are often issued primarily to benefit issuers, without a clear mechanism tying token value to revenue potential or real utility. This keeps valuations speculative: price and FDV are frequently sustained by narratives rather than fundamentals. * **Misaligned incentives and dilution:** Founders and contributors often receive an oversized allocation (commonly **30–50%+**), while users, LPs, and ecosystem participants—those who actually create value, receive less than they should. On top of that, poorly designed tokenomics can lead to high, unchecked inflation, diluting holders without corresponding growth in protocol earnings. * **No revenue redistribution (especially in stablecoins):** In the stablecoin sector, centralized issuers like Tether and Circle generated over **$10 billion in combined revenue in 2023** from user deposits, and redistributed none of it. Users bear the opportunity cost and risk of holding stablecoins, yet receive no share of the yield their capital generates. The stablecoin model has largely remained unchanged since inception. ## How USUAL Solves These Problems ### 1. Revenue-Backed, Not Speculation-Backed USUAL represents ownership of **100% of the protocol’s revenue**. The yield generated by USD0’s underlying collateral, primarily US Treasury Bills, flows to USUAL holders through the Revenue Switch, which distributes protocol earnings **weekly in USD0** to stakers. ### 2. Community-First Distribution (100% Model) USUAL was designed to redistribute 100**% of all value generated to USUAL holders,** liquidity providers, active users, and ecosystem partners. This is intentionally the inverse of both traditional finance and most DeFi token distributions: | Model | Revenue Beneficiary | User Share | | -------------------------- | --------------------- | ---------- | | Tether (USDT) | Tether Limited (100%) | 0% | | Circle (USDC) | Circle (100%) | 0% | | **Usual Protocol (USUAL)** | Usual Holders | **100%** | Those who create value, by depositing collateral, providing liquidity, and driving adoption, are positioned as the primary beneficiaries. ### 3. Dual Yield: Emissions + Real Revenue Staking USUAL as USUALx is designed to provide a **dual-yield** profile: | Yield Source | Description | Denomination | | --------------------- | --------------------------------------------------- | ------------ | | **Staking Emissions** | ≃22.5% of all daily USUAL emissions (anti-dilution) | USUAL | | **Revenue Switch** | Up to 100% of protocol revenue distributed weekly | USD0 | USUALx holders earn both token-denominated rewards and **real yield in USD0,** a stablecoin backed by US Treasury Bills. Unlike emission-only incentives that can dilute value, the Revenue Switch is designed to deliver actual protocol earnings. ### 4. Governance Over Real Parameters USUAL governance is designed to be economically meaningful, not symbolic. Holders vote on decisions that directly affect protocol revenue, token supply dynamics, and collateral composition: * **Collateral governance** — which RWAs are accepted as USD0 collateral * **Parameter governance** — fees, emission rates, and risk parameters * **Treasury governance** — how the **\~$30M+** DAO treasury is invested and deployed * **Asset onboarding** — approving new Liquid Deposit Tokens (e.g., **ETH0**, **EUR0**, and beyond) These levers directly shape the system’s economics, giving USUAL holders governance over what matters. ### 5. Built on Real Cash Flows, Not Narratives The protocol is designed to generate revenue from some of the safest yield-bearing assets in traditional finance, **US Treasury Bills,** held as on-chain verifiable collateral. Key metrics: | Metric | Value | | --------------------------- | ---------------- | | Annual revenue (current) | \~$5.5–6 million | | Revenue Switch distribution | Weekly, in USD0 | | DAO treasury (Sept 2025) | \~$30.75 million | ## USUAL in Summary | Property | USUAL | Typical Gov Token | | -------------------- | ---------------------------------------- | -------------------------- | | Revenue linkage | 100% of protocol revenue | Usually none | | Yield source | Protocol Revenue + emissions | Emissions only | | Revenue distribution | Weekly in USD0 via Revenue Switch | Rarely implemented | | Governance scope | Collateral, treasury, parameters, assets | Often limited | | Valuation basis | Cash-flow | Speculative / narrative | | Supply cap | 3 billion (revised down from 4B) | Often static or increasing | USUAL is designed to be what governance tokens should have been from the beginning: **a token backed by real economics, distributed to the people who create value, and governed through decisions that materially affect the protocol.** It combines cash-flow-backed yield with growth upside, anchored in the expanding adoption of USD0. *** ## Usual Tokenomics | Metric | Value | | ----------------------- | --------------------- | | Maximum supply | **3.0 billion USUAL** | | Current daily emissions | \~1,350,000 USUAL/day | | Distribution end date | **June 2028** | The supply cap was originally **4.0B USUAL**. Following the **UIP-11** governance vote (Nov 2025), it was reduced by **25%** to **3.0B USUAL**, alongside a **\~50.7% reduction in daily emissions**. This disinflation shock aimed to reduce excessive sell pressure from farming rewards and better align supply expansion with organic demand. *** ### Post-Disinflation Allocations (January 2026) After UIP-11, daily emissions were restructured as follows until June 2028.
BucketDaily USUAL
bTOKEN (bUSD0 + ETH0)130,000
LP rewards69,953
USUALx301,203
USUAL STAR301,203
Foundation547,641
Total~1,350,000
*** ### Pre-TGE Distribution
CategoryAmount
Airdrop340,000,000 USUAL (7.5% of initial minting rate)
Binance Launchpool300,000,000 USUAL
Total pre-TGE640,000,000 USUAL
*** | Contract | Address | | -------- | -------------------------------------------- | | USUALx | `0x06B964d96f5dCF7Eae9d7C559B09EDCe244d4B8E` | # Usual Staking ($USUALx) **USUALx** is the transferable ERC-20 token that represents **staked USUAL** in the Usual Protocol. Staking is the base layer of the protocol’s participation stack: it provides access to governance, earns a share of the protocol’s daily USUAL emissions, and is the prerequisite for unlocking protocol revenue through the **Locking Module**. *** ## How It Works When you deposit **USUAL** into the staking contract, you receive **USUALx** at the **current exchange rate**. Over time, the **USUALx ↔ USUAL exchange rate increases** as staking rewards accrue. As a result, each USUALx becomes redeemable for **more USUAL** over time—**no manual claiming** is required. ``` Stake: USUAL → USUALx (at current exchange rate) Unstake: USUALx → USUAL (at appreciated exchange rate) - 10% fees ``` *** ## Key Facts * **Stake USUAL → receive USUALx**, a transferable representation of your staked position. * **USUALx holders receive 22% of all daily USUAL emissions**, distributed proportionally across USUALx supply. * **Stake or unstake at any time**—basic staking has **no mandatory lock-up**. * The **DAO apply an unstaking fee** (currently **10%**), of which **⅓ is redistributed to remaining stakers**. * **Only locked USUALx earns protocol revenue** via the **Revenue Switch**. * **Staking is the required foundation** for participating in the Locking Module and revenue share. *** ## Daily USUAL Emission Stakers collectively receive **22% of all USUAL tokens issued each day**. This allocation serves as an **anti-dilution mechanism**, helping stakers hedge against the inflationary effects of broader USUAL distribution. Following the **November 2025 disinflation shock**, daily emissions were reduced by approximately **50.7%** (from \~**2.74M** to \~**1.35M USUAL/day**). While the nominal amount flowing to USUALx remained constant at **301,203 USUAL/day**, the staking share of total emissions increased from **11%** to **22.31%**, giving stakers a proportionally larger share of the reduced supply. *** ## Unstaking Fee The DAO can set an **unstaking fee** on withdrawals from USUALx back to USUAL. The fee is currently **10%** and is distributed as follows: | Recipient | Share | | ------------------------ | --------- | | Remaining USUALx stakers | ⅓ (33.3%) | | USUAL insiders | ⅓ (33.3%) | | DAO treasury / protocol | ⅓ (33.3%) | This fee structure discourages short-term speculative behavior while rewarding long-term participants. In **2025**, approximately **$400,000** was collected from unstaking fees. # Usual Revenue Distribution The **USUALx Revenue Distribution Module** lets USUALx holders commit their **staked USUAL** for fixed durations to gain access to the protocol’s **revenue distributions** via the **Revenue Switch**. * **Only locked USUALx earns protocol revenue** (weekly USD0 distributions). * **Unlocked (basic staked) USUALx** still earns its share of the 22**% daily USUAL emission**, but **does not** participate in weekly USD0 revenue distributions. * **Longer lock durations** receive **duration-based boosts**, increasing a user’s *relative* share of weekly revenue. *** ## Design Philosophy The Locking Module directs protocol revenue to committed participants and aligns long-term holders with protocol health. By requiring immutable time commitments to access revenue, the mechanism: * **Filters for conviction:** Only participants willing to commit capital for defined periods receive the protocol’s real yield. * **Reduces volatility:** Locked positions cannot be withdrawn impulsively, supporting a more stable staker base. * **Supports sustainable growth:** Revenue flows to durable supporters of the ecosystem rather than short-term yield seekers. *** ## From Staking to Revenue: The Full Stack Staking is the first step in a layered participation model, where each layer unlocks additional benefits: | Layer | Action | Benefit | | -------------------- | --------------------------------------------- | ----------------------------------------------------------- | | **1. Staking** | Deposit USUAL → receive USUALx | Earn 22,5% of daily USUAL emissions | | **2. Locking** | Lock USUALx for 1, 3, 6, or 12 months | Become eligible for protocol revenue via the Revenue Switch | | **3. Revenue Share** | Hold locked USUALx through full weekly epochs | Receive weekly USD0 distributions from protocol earnings | | **4. Governance** | Hold USUALx | Participate in on-chain governance votes | Longer lock durations provide **higher revenue boosts**—the protocol rewards long-term commitment with a proportionally greater share of distributed revenue. Locks are **immutable until expiration**. At maturity, tokens become fully liquid and can be **withdrawn or re-locked**. Users can also maintain **multiple lock positions simultaneously**, each with its own duration. *** ## How It Works The Locking Module is layered on top of basic USUALx staking. The end-to-end flow is: 1. **Stake USUAL → Receive USUALx**\ Deposit USUAL into the staking contract at the current exchange rate and receive **USUALx**. No lock-up is required at this stage. Simply holding USUALx earns you a share of the **\~22% daily USUAL emission**. 2. **Lock USUALx → Become Eligible for Protocol Revenue**\ Lock your USUALx for a fixed duration to become eligible for **weekly USD0 revenue distributions** via the Revenue Switch. 3. **Hold Through Epochs**\ Revenue is distributed on a **weekly epoch** schedule (**Monday UTC+0 to Sunday UTC+0**). To qualify for a given week’s distribution, your locked position must remain locked for the **entire epoch**. 4. **Maturity → Withdraw or Re-lock**\ When the lock expires, your USUALx becomes liquid again. You can: * **Withdraw** (convert USUALx back to USUAL at the then-current, appreciated exchange rate), or * **Re-lock** for a new term. *** ## Lock Durations and Revenue Boosts USUALx can be locked for one of four fixed durations. Each duration applies a **revenue boost** that increases the position’s **revenue-share weighting** for weekly USD0 distributions: | Lock Duration | Revenue Boost | | ------------- | ------------- | | 1 month | Base level | | 3 months | Higher boost | | 6 months | Higher boost | | 12 months | Maximum boost | > **Important:** Revenue boosts affect **revenue-share weighting only**. They do **not** change governance voting power, USUAL staking emission rates, or token supply mechanics. *** ### Epoch Eligibility Rules Eligibility is governed by strict epoch-based rules: * **Full-epoch requirement:** Your locked position must remain intact for the **entire weekly epoch** (Monday through Sunday UTC+0) to qualify. * **Top-ups during an epoch:** Additional locks or increases made during an active epoch count toward the **next epoch**, not the current one. * **Withdrawals void the epoch:** **Any withdrawal during an active epoch voids all reward eligibility for that epoch.** The locked position must remain untouched for the full week to earn that week’s distribution. * **Mid-epoch new locks:** Locks created mid-epoch begin earning revenue distributions starting the **following epoch**. *** ## Dual-Yield Structure Locked USUALx positions can receive two yield streams at the same time: 1. **USUAL staking emissions**\ **22% of all daily USUAL emissions** are distributed to all USUALx holders (both locked and unlocked). This value accrues through the **appreciating USUALx-to-USUAL exchange rate**. Post-disinflation, this corresponds to **301,203 USUAL/day** (\~22.3% of total daily emissions). 2. **USD0 revenue distributions**\ Weekly Revenue Switch payouts in **USD0**, available **only** to locked USUALx positions and **weighted by lock duration** (via the revenue boost). *** ## Managing Multiple Positions Users can manage **multiple lock positions** at the same time: * Multiple lock positions can be opened with different **amounts** and **durations**. * Each position is tracked independently, with its own **maturity date** and **boost level**. * Creating a new lock does **not** affect existing locks. * This enables lock “laddering” to balance **liquidity** and **yield optimization**. *** ## Smart Contracts | Contract | Address (Ethereum) | | ------------- | -------------------------------------------- | | USUALx | `0x06B964d96f5dCF7Eae9d7C559B09EDCe244d4B8E` | | USUALx Lockup | `0x85b6f9bddb10c6b320d07416a250f984f0f0e9ed` | *** ## Procotole Revenue & Revenue Switch ### Revenue Sources Protocol revenue is generated from multiple sources: | Source | Description | | --------------------------- | ------------------------------------------------------------------- | | **T-Bill collateral yield** | Primary source, yield from US Treasury Bills and repos backing USD0 | | **Protocol fees** | Fees from minting, redeeming, and other protocol operations | | **Fira lending fees** | 10 bps base borrowing fee | ### Revenue Distribution Flow ``` T‑Bill yield + protocol fees + unstaking fees ↓ Protocol revenue pool ↓ ┌───────────────┴───────────────┐ ↓ ↓ 30% to USUALx stakers 70% to DAO treasury (weekly, in USD0) (compounding, buybacks, strategic deployment) ``` # Usual Governance Usual Protocol is designed to **progressively decentralize**—redistributing decision-making authority from a managed launch framework to a community-led DAO as the ecosystem matures. Governance starts with structured safeguards to ensure operational stability in early phases, then transitions toward broader community control to support long-term neutrality and resilience. ## Governance Philosophy Usual governance is anchored in a simple principle: > **Those who create value should own and direct the protocol.** Rather than concentrating control in a corporate entity, governance authority is placed with token holders who have a direct economic stake in the protocol’s success. Over time, the protocol moves from a guided launch phase toward a fully decentralized model in which the community sets policy across protocol parameters, treasury, and strategic direction. ## The Usual DAO Ultimate governance authority resides in the **Usual DAO**, driven primarily by **staked USUAL (USUALx)** holders. These stakeholders have proposal and voting rights and can shape DAO operations, strategic direction, and investment policies. ### Historical Governance Tokens Before **November 2025**, governance rights were shared across two token classes: * **USUALx** — staked USUAL representing the community’s governance voice. * **USUAL\*** — a separate seigniorage token distributed to insiders (team, investors, advisors), carrying governance weight equal to USUALx. In **November 2025**, USUAL\* was made soulbound (and will remain in existence until June 2028). Insiders received approximately 348.57M USUAL in compensation (360M × 0.97). This removed the dual-token governance structure and simplified governance into a **single-token model**, where voting power flows through **USUAL/USUALx**. **Holders of USUAL\* will retain their governance rights (50%) until June 2028. After that, only holders of USUALx will control the protocol**. Insiders retained significant influence via their USUAL holdings, but now participate under the same token mechanics as all other holders, improving transparency and perceived legitimacy. *** ## Governable Aspects The DAO governs the protocol’s most important policy surfaces. Holders of **USUAL** and **USUALx** can propose and vote on changes across the areas below. ### 1. Protocol Parameters The DAO can update parameters that directly affect the protocol’s economic mechanisms, including: * **USUAL supply, allocation, and distribution** * Adjusting emission rates, bucket allocations, and the **growth control variable (γ)** that accelerates or decelerates token distribution. * **Fees** * Setting fees for actions such as **USD0 redemption**, **bUSD0 early unstaking**, **USUALx unstaking (currently 10%)**, and lending (e.g., the **Fira 10 bps protocol fee (immutable)**). * **Collateral provider rewards** * Adjusting incentive rates for collateral providers via the **Multi Collateral Controller**, including reward scaling factors and rebalancing thresholds. * **bUSD0 floor price** * Setting the minimum **primary-market redemption value** for early exit (currently **0.92 USD0**). * **Insurance fund parameters** * Configuring the insurance accrual rate (about **\~20%**) and the maximum fund cap (**0.33%–5.33% of all USD0**). *** ### 2. Onboarding of New Collateral and Assets The DAO determines which collateral is eligible and which assets can be converted into **Liquid Deposit Tokens (LDTs)** within Usual. This includes: * **New RWA collateral providers** * Approving tokenized Treasury Bill providers (e.g., **Hashnote USYC, M0, Spiko USTBL & USDC**) after due diligence covering structuring, regulation, risk policy, security, and transparency. * **New Stablecoin or Synthetic asset classes** * Expanding beyond USD0 into additional asset types such as: * **ETH0** (backed by LST/LRT collateral) * **EUR0** (backed by Eurozone assets) * **Exposure limits** * Setting maximum allocation per collateral provider to support diversification. * **Removal of collateral** * Delisting collateral that no longer meets eligibility requirements (e.g., full collateralization, low risk, transparency, liquidity, and duration below **0.33 years**). In practice, the DAO sets the direction for protocol expansion: each new collateral provider or asset class requires community approval. *** ### 3. DAO Treasury Management The DAO manages treasury policy, including: * **Investment strategies** * How treasury assets (about **\~$30.75M as of September 2025**) are allocated across stablecoin exposure, ETH exposure, yield strategies, and protocol tokens. * **Allocations** * Setting the insurance fund size, buyback budgets (historically **\~$100k/week**), and strategic investment budgets. * **Distribution of proceeds** * Deciding how revenue is split between **USUALx staker distributions (currently 30%)** and **treasury retention (currently 70%)**. * **Buyback and burning** * Directing treasury funds toward USUAL buybacks and/or burning mechanisms, as approved by governance. * **Strategic positions** * Funding grants, co-development, and ecosystem bootstrapping (including external protocols) to fill infrastructure gaps in the Usual ecosystem. *** ## Voting Power Distribution ### Post-USUAL\* Retirement (November 2025 onward) After USUAL\* was retired and converted to USUAL, governance simplified: * **There is no longer a separate insider governance token.** * **Voting power flows through USUAL/USUALx** as the primary governance asset in 2028. * Insiders participate through their USUAL holdings on the same basis as other holders. ### Initial Insider Governance Safeguards During early phases, USUAL\* holders held majority voting power to support coordinated execution and roadmap adherence. This was an explicit design choice: launching complex DeFi systems often requires faster, more aligned decision-making than a fully decentralized process can reliably provide at inception. As the protocol matured, governance moved toward greater decentralization centered around USUAL holders. *** ## Governance Process ### Proposal Lifecycle Governance proposals follow a standard lifecycle: 1. **Proposal submission** — eligible token holders submit a **Usual Improvement Proposal (UIP)**. 2. **Discussion period** — the community evaluates the proposal, refines parameters, and debates tradeoffs. 3. **Voting period** — on-chain voting occurs, with votes weighted per the active voting-power framework. 4. **Execution** — approved proposals are implemented through smart contracts and/or coordinated protocol upgrades. ### Notable Governance Proposals
ProposalDateImpact
UIP-1Early 2025Established the preliminary voting structure.
UIP-6April 2025Modified early redemption parameters for bUSD0
UIP-7Mid-2025Distributed over 70M USUAL (as USUALx) from collected early redemption fees
UIP-11November 2025Implemented the disinflation shock: reduced supply cap from 4B to 3B, cut daily emissions by ~50.7%, eliminated USL farming rewards
UIP-122025Rebranded USD0++ to bUSD0 and introduced the rt-bUSD0 early-exit right token
*** ## Revenue Governance The DAO controls how protocol revenue is allocated. This model has evolved over time through governance decisions:
PeriodRevenue Distribution
January–June 2025Up to 100% of revenue distributed to USUALx stakers (emergency measure post-depeg)
June–November 2025Reformed: 70% retained in treasury, 30% distributed to locked USUALx holders
November 2025 onwardMaintained 70/30 split; disinflation reduced total revenue while improving token economics
The **Revenue Switch** (activated **January 13, 2025**) distributes the community’s share of protocol revenue **weekly in USD0** to **locked USUALx** holders, creating a direct link between governance participation and economic returns. *** ## Progressive Decentralization Roadmap Usual follows a staged decentralization strategy aligned with long-term sustainability:
PhaseGovernance Model
Launch (2024)Lab-managed with community input; USUAL* holds majority voting power
Growth (2025)Preliminary voting structure (UIP-1); community increasingly drives major proposals
Maturity (2025–2026)USUAL* retired; single-token governance; community holds majority economic and voting power
Full decentralization (2027+)DAO-led operations with community governance over protocol parameters, treasury, and strategic direction
## Key Takeaways * Usual governance follows **progressive decentralization**, moving from a managed launch to community-led control via the **Usual DAO**. * The DAO governs **protocol parameters**, **collateral onboarding**, **treasury management**, and **revenue distribution**. * Voting power initially followed a **50% USUALx / 50% USUAL\*** model (UIP-1). After **USUAL\*** retirement in November 2025, governance moved toward a **single-token** USUAL/USUALx model. * The DAO holds emergency authorities including **Counter Bank Run Mechanism** for extreme scenarios. * Governance processes and voting-weight mechanics can continue to evolve as the protocol matures. ## Governance ### Voting Power USUAL holders participate in on-chain governance for key protocol decisions. | Stakeholder Group | Voting Power | | ----------------- | ------------ | | USUALx holders | 80% | | bUSD0 holders | 20% | > Following the Nov 2025 **USUAL\*** retirement, governance uses a single-token model where voting power flows primarily through **USUAL / USUALx**, with bUSD0 holders contributing 20% of total voting power. # Roadmap Where Usual has been — and where it's going. ### Published | Document | Period | Description | | --------------------------------------------------------------------------------- | -------------------- | -------------------------------------------------------------------------------------------- | | [The First Two Years](/resources-and-ecosystem/roadmap/usual-the-first-two-years) | 2024 – February 2026 | From founding to five business lines — every milestone, every product, every governance vote | # Usual — The First Two Years > We started with a question: why don't the people who use stablecoins own what they create? Two years later, we have the answer — and we're still building it. *From founding to five business lines. A look at what we've shipped.* *** ### The Story in Five Phases | Phase | Period | Theme | | ------------------- | ------------------------- | ------------------------------------------------ | | **Origins** | 2022 – April 2024 | Founding, research, first funding | | **Launch & Growth** | May – December 2024 | Products, markets, $2B in deposits | | **Maturation** | January – August 2025 | Revenue sharing, governance framework, ETH0 | | **Unification** | September – December 2025 | Multi-currency, disinflation, full DAO ownership | | **V2 Foundations** | January – February 2026 | Credit, five business lines, neobank vision | *** ### Phase 1 — Origins (2022 – April 2024) Usual Labs was founded in France in 2022. The mission: build a financial system where the people who use it actually own it. Two years of research, design, and security groundwork followed. By April 2024, the protocol had funding from 15 investors, two completed audits, and $75M in committed deposits. | Date | Milestone | | ------------- | -------------------------------------------------------------------------------------------------------------------- | | 2022 | **Usual Labs founded** in France — three co-founders, one mission | | November 2023 | **Kraken Ventures** confirms seed participation | | April 2024 | **$7M seed round** led by IOSG Ventures and Kraken Ventures (15 investors including GSR, Mantle, Starkware, Psalion) | | April 2024 | Protocol **exits stealth** with $75M committed — covered by CoinDesk and The Block | | May 2024 | First smart contract audit by **Cantina** | | June 2024 | **Cantina Pegasus** — public audit competition completed | *** ### Phase 2 — Launch & Growth (May – December 2024) Six months of shipping. USD0 went live in May — a dollar balance fully backed by US Treasury Bills. bUSD0 followed in July. By November, Usual was the 61st project on Binance Launchpool. By December, total deposits reached $2B. | Date | Milestone | | -------------- | ------------------------------------------------------------------------------ | | May 2024 | **USD0 launched** — dollar balance backed by US Treasury Bills (Hashnote USYC) | | July 2024 | **bUSD0 launched** — fixed-term deposit earning daily USUAL rewards | | October 2024 | **Paladin audit** of L2 contracts — multi-chain deployment prepared | | November 15–18 | **Binance Launchpool** (61st project) — 300M USUAL distributed | | November 19 | **USUAL listed on Binance** — circulating supply: \~494.6M (12.37% of total) | | November 2024 | **Listed on OKX and ByBit** | | November 2024 | Major audits completed by **Cantina, Halborn, and Sherlock** | | December 2024 | **$10M Series A** led by Binance Labs and Kraken Ventures | | December 2024 | Additional audits by **Blackthorne and Cantina** | | Late 2024 | **Deposits reach \~$2B** | #### Investor alignment The Series A brought together four major exchange venture arms in one round: Binance Labs, Kraken Ventures, Coinbase Ventures, and OKX Ventures. Alongside them: Galaxy Ventures, Symbolic Capital, Amber, and GSR. Total funding raised: **$17M.** *** ### Phase 3 — Maturation (January – August 2025) This phase was about building the infrastructure that turns a product into a platform. Revenue sharing launched in January — the mechanism that distributes protocol earnings directly to locked USUAL holders every week. Eight governance proposals were debated and voted on. ETH0 extended the product line to Ethereum-denominated assets. Twelve additional audits hardened the codebase. | Date | Milestone | | ------------- | ---------------------------------------------------------------------------------------------------------------- | | January 2025 | **Revenue sharing activated** — protocol revenue distributed weekly to locked USUAL holders | | February 2025 | **UIP-1** — Usual Stability Loan (USL) implemented | | February 2025 | **UIP-2** — USL capacity increased | | March 2025 | **UIP-3** — DAO treasury staking proposal. The community voted against it (72%) — governance working as designed | | April 2025 | **UIP-6** — USUALx value maximization | | April 2025 | **UIP-7** — Redemption fee redistribution to holders | | May 2025 | **ETH0 launched** — ETH balance backed by wstETH | | May 2025 | **USUALx Lockup deployed** — lock 1 to 12 months to earn revenue share | | June 2025 | **UIP-8** — wstETH approved as ETH0 collateral | | July 2025 | **UIP-9** — Locking mechanism, buybacks, and revenue alignment | | July 2025 | **UIP-10** — USL parameters optimized | | July 2025 | **bUSD0 upgraded** — burn redemption mechanism introduced | Revenue model refined during this phase: **70% of protocol revenue retained by the DAO treasury. 30% distributed weekly to locked USUAL holders.** A buyback program launched at \~$300K/week, repurchasing over 10% of circulating supply by late 2025. **12 audits completed** during this period — Spearbit, Sherlock, OAK Security, Halborn, Hexens. *** ### Phase 4 — Unification (September – December 2025) The most transformative quarter in Usual's history. Four new products launched. The disinflation vote (UIP-11) reduced USUAL max supply from 4B to 3B and halved daily emissions. And in December, five governance proposals in fifteen days completed the convergence: bUSD0 received its final structure, new collateral was approved, and the DAO took full ownership of all protocol assets. | Date | Milestone | | ------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | | October 2025 | **EUR0 launched** — euro balance backed by European sovereign bonds | | November 2025 | **sUSD0 launched** — dollar savings account | | November 2025 | **sEUR0 launched** — euro savings account | | November 2025 | **USD0a launched** — advanced strategy with market-neutral returns | | November 13 | **UIP-11 — Disinflation era begins**: max supply **4B → 3B**, daily emissions **halved** | | November 25 | **Vesting cliff** — \~207M USUAL distributed to stakeholders | | December 8 | **UIP-12** — bUSD0 restructured with rt-bUSD0 (Redeem Token) for flexible exit | | December 2025 | **Liquidity migration** to new infrastructure | | December 17 | **UIP-13** — USUAL\* (STAR) converted to soulbound, phased out by June 2028 | | December 18 | **UIP-14** — USTBL approved as USD0 collateral | | December 23 | **UIP-15 — Full DAO Convergence**: the DAO owns 100% of protocol assets. Usual Labs becomes a service provider. IP transfer scheduled for Q1 2026 | #### UIP-11 — Disinflation at a glance | | Before | After | | --------------------------- | ----------------- | --------------------- | | Max supply (4 years) | 4.0 billion | **3.0 billion** | | Daily emissions | \~2,738,000 USUAL | **\~1,350,000 USUAL** | | Projected full distribution | \~November 2028 | **June 2028** | Five governance proposals in fifteen days. Each one moved ownership closer to the community. By December 23, the DAO owned everything. *** ### Phase 5 — V2 Foundations (January – February 2026) Credit arrived. In January, the DAO acquired a fixed-rate lending protocol and launched it as **Usual Credit**. Three governance proposals in three days established the credit infrastructure. The protocol now operates five business lines — currencies, savings, credit, security, and governance — under one platform. | Date | Milestone | | ----------------------- | ---------------------------------------------------------------------- | | January 6 | **UIP-16** — UZR approved as USD0 collateral | | January 8 | **UIP-17** — DAO acquires Fira lending protocol | | January 8 | **UIP-18** — UZR lending market launched | | January 14 | **Usual Credit goes live** on the Usual app | | January 27 – February 3 | **USUALx Early Unlock window** — voluntary exit for holders | | January 2026 | **EUR0a preparation** — EUR0 Alpha audits and communications initiated | | February 2026 | **Weekly revenue sharing active** | | February 2026 | Continuous production releases on the Usual app | #### Five business lines, one platform | Business line | Products | | ------------------------- | ------------------------------------------- | | **Currencies & Deposits** | USD0, EUR0, ETH0, FX rails | | **Savings & Yield** | sUSD0, sEUR0, USD0a, bUSD0, Usual Vaults | | **Credit** | Usual Credit — fixed-rate lending | | **Security & Compliance** | 20+ audits, monitoring, compliance rails | | **Governance** | USUAL token, DAO ownership, revenue sharing | *** ### What We've Built — By the Numbers #### 12 products shipped in 20 months | Product | Launch | What it does | | -------------------- | -------------- | ----------------------------------------------------------- | | **USD0** | May 2024 | Dollar balance backed by US Treasury Bills | | **bUSD0** | July 2024 | Fixed-term deposit — lock until June 2028, earn daily USUAL | | **USUAL** | November 2024 | Ownership and governance token — 3B max supply | | **USUALx** | November 2024 | Locked USUAL — earn weekly revenue share | | **ETH0** | May 2025 | ETH balance backed by wstETH | | **EUR0** | October 2025 | Euro balance backed by European sovereign bonds | | **sUSD0** | November 2025 | Dollar savings account | | **sEUR0** | November 2025 | Euro savings account | | **USD0a** | November 2025 | Advanced strategy — market-neutral returns | | **bUSD0 + rt-bUSD0** | December 2025 | Restructured bond with flexible early exit | | **Usual Credit** | January 2026 | Fixed-rate credit — borrow against your assets | | **EUR0a** | In preparation | Euro advanced strategy | #### 20+ audits by 8 independent firms **Cantina · Sherlock · Spearbit · Halborn · Hexens · Paladin · Blackthorne · OAK Security** Every product, every upgrade, every new contract goes through independent review before reaching users. Security is not a feature — it's the foundation. | Period | Firms | | ------- | ----------------------------------------------------------------- | | 2024 | Cantina, Cantina Pegasus, Paladin, Halborn, Sherlock, Blackthorne | | H1 2025 | Spearbit, Sherlock, OAK Security, Halborn, Hexens | | H2 2025 | Sherlock, Hexens, Halborn, Cantina | | 2026 | Fira audit, EUR0a and EUR0 Oracle audits initiated | #### 16 governance proposals voted 15 approved. 1 rejected by the community. Every major decision — from tokenomics to IP ownership — decided by vote. | UIP | Date | Decision | | ------ | ------------- | ----------------------------------------------------- | | UIP-1 | February 2025 | Usual Stability Loan implemented | | UIP-2 | February 2025 | USL capacity increased | | UIP-3 | March 2025 | DAO treasury staking — **rejected by community vote** | | UIP-6 | April 2025 | USUALx value maximization | | UIP-7 | April 2025 | Redemption fee redistribution | | UIP-8 | June 2025 | wstETH approved as ETH0 collateral | | UIP-9 | July 2025 | Locking, buybacks, revenue alignment | | UIP-10 | July 2025 | USL parameters optimized | | UIP-11 | November 2025 | **Disinflation: supply 4B → 3B, emissions halved** | | UIP-12 | December 2025 | bUSD0 restructured with rt-bUSD0 | | UIP-13 | December 2025 | USUAL\* (STAR) soulbound, phased out June 2028 | | UIP-14 | December 2025 | USTBL approved as USD0 collateral | | UIP-15 | December 2025 | **Full DAO Convergence — 100% community ownership** | | UIP-16 | January 2026 | UZR approved as USD0 collateral | | UIP-17 | January 2026 | **DAO acquires Fira lending protocol** | | UIP-18 | January 2026 | UZR lending market launched | #### $17M raised from tier-1 investors | Round | Date | Amount | Lead investors | | -------- | ------------- | ------ | ------------------------------ | | Seed | April 2024 | $7M | IOSG Ventures, Kraken Ventures | | Series A | December 2024 | $10M | Binance Labs, Kraken Ventures | Backed by: Binance Labs · Kraken Ventures · Coinbase Ventures · OKX Ventures · Galaxy Ventures · Symbolic Capital · Amber · GSR · Mantle · Starkware #### Infrastructure * **4 chains**: Ethereum (primary), Arbitrum, Base, BNB Chain * **Revenue model**: 30% to locked USUAL holders / 70% to DAO treasury — distributed weekly * **USUAL supply**: 3B max, \~1.35M emitted daily, full distribution by June 2028 * **DAO ownership**: 100% of protocol assets since December 2025 *** ### The Evolution | Phase | What we were | What we built | | --------- | --------------------- | ------------------------------------------ | | 2022–2024 | A team with a thesis | A stablecoin backed by real assets | | 2024–2025 | A stablecoin protocol | A multi-product platform with governance | | Late 2025 | A platform | Five business lines, fully community-owned | | 2026 | A Defi-Fintech | **Money you actually own.** | *** > Two years ago, we asked: why don't people own what they create? > > Today, Usual is a platform with twelve products, twenty audits, sixteen governance votes, and full community ownership. Built on real assets. Shared with the people who use it. > > That was the foundation. Now comes what we build on top of it. *** # Whitepaper The whitepaper outlines the initial state of the protocol during the TGE. It does not reflect updates made by governance, whether on products or mechanisms. The **Usual Whitepaper** is the definitive technical and economic reference for the **Usual Protocol**. It presents the protocol’s core principles, vision, architecture, and mechanisms—covering everything from its **RWA-backed stablecoin infrastructure** to **disinflationary tokenomics** and a **community-first governance** model. {% file src="/files/E8mQWblATgdNPSdhxQY2" %} ## What the Whitepaper Covers The whitepaper provides a comprehensive treatment of the following areas: ### Vision & Problem Statement Usual addresses a structural imbalance in the stablecoin market: centralized issuers such as Tether and Circle generated over **$10 billion in combined revenue in 2023** from user-deposited collateral—without sharing that value with the users who enabled it. Usual reimagines this model by redistributing **100% of protocol value to the community** through the **USUAL** governance token. ### Architectural Design The protocol is organized into two distinct layers: | Layer | Description | | ------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | **Usual Collateral Bridge Infrastructure** | The foundational layer that manages **Liquid Deposit Token (LDT)** minting and redemption, as well as collateral onboarding. It bridges both permissioned (institutional) and permissionless (retail/DeFi) participants. | | **Product Offerings Layer** | Products built on top of LDTs—including **Liquid Bond Tokens (bUSD0)**, **Liquidity Yield Tokens (LYTs)**, **Instant Yield Tokens (IYTs)**, and staking modules—that support ecosystem sustainability and growth. | ### Core Products * **USD0** — The first **Liquid Deposit Token (LDT)**: a USD-pegged stablecoin fully backed by **US Treasury Bills** and **reverse repurchase agreements**, with **on-chain verifiable reserves**. * **bUSD0** — A **Liquid Bond Token (LBT)** that locks USD0 to generate yield via **daily USUAL token coupons**, with **guaranteed 1:1 redemption at maturity (June 2028)**. * **USUAL** — The governance and revenue-sharing token representing ownership of **100% of protocol revenue.** * **USUALx** — **Staked USUAL**. USUALx receives **\~22% of all daily emissions** (an **anti-dilution** right) and also receives protocol revenue via the **Revenue Switch**. ### RWA Collateral & Risk Management The whitepaper specifies strict eligibility criteria for accepted collateral: * **Fully collateralized** — No leverage or fractional reserve exposure * **Low risk** — Only sovereign bonds (**US Treasury Bills**) with the lowest market risk * **Transparent** — On-chain verifiable with frequent off-chain audits * **Liquid** — Portfolio duration capped at **0.33 years** (≈ **4 months**) * **Zero tolerance** for FX risk and credit risk (no corporate debt) A **Multi Collateral Controller** dynamically manages portfolio composition across multiple RWA providers (including **Hashnote USYC**, **M by M0**, **USTBL**, and others). It uses a dual-layer system—**continuous reward adjustments** and **triggered rebalancing**—to maintain robust diversification. ### Revenue Switch & Value Distribution The **Revenue Switch**, activated on **January 13, 2025**, distributes protocol revenue directly to **locked USUALx** stakers in **USD0** on a **weekly** basis. The protocol generates approximately **\~$5.5–6 million per year** in revenue (current estimate, post-UIP-11 disinflation), creating a direct and measurable link between protocol growth and token-holder returns. ### Governance **USUAL** and **USUALx** holders govern critical protocol parameters, including: * Collateral onboarding * Fee structures * Emission allocations * Treasury management * Insurance fund sizing This governance model ensures the protocol evolves in line with community interests. ### Safety Mechanisms The whitepaper describes multiple safety mechanisms: * **Counter Bank Run Mechanism** — An insurance fund that burns LDT to maintain the salvageable redemption value per USD0 * **Instant Yield Tokens (IYTs)** — A repegging mechanism that uses secondary-market buybacks to restore bUSD0 parity *** *This document is updated as the protocol evolves, incorporating governance-driven advancements, new products, and tokenomics reforms.* *Last update: Nov 2025* # Legal Documentation # Legal Notice ### Usual Protocol - Date of the latest revision: 10/18/2024 The information contained on the websites [https://usual.money](https://usual.money/) and (together the “Website”) has no contractual value and is provided for information purposes only.Up Only Co (the “Company”) reserves the right to modify their characteristics at any time and without prior notice. The information contained in this Website shall not be construed as an offer to the public, a solicitation, an investment advice, or a solicitation by the Company to the users of the Website. #### PRESENTATION OF THE COMPANY The Website is published by the Company.- Company’s name: Up Only Co,- SIREN number: 919 540 427,- Registered office: 1, rue de Stockholm, 75008, Paris,- VAT number: 919 540 427- Jurisdiction: France.The Company undertakes to comply with the regulations governing the management and operation of a website.At any time, you can contact the Company by email at #### SITE CONTENT The Company declines all responsibility in the event of impossibility or difficulty in accessing its Website, in particular due to an Internet connection problem. The Company shall not be liable for any direct or indirect damage, including loss of business, loss of profit and/or loss resulting from a partial or permanent interruption of service due to an Internet connection problem.The Company may not be held liable for elements beyond its control, nor for damage that may be caused by the technical environment of users of this Website, including their software, computers, network equipment and any other equipment used to access the services and/or information published on the Website.The Company makes every effort to ensure that the information published on its Website is up-to-date and accurate and reserves the right to modify its content at any time without prior notice. However, the Company cannot guarantee that it has not been modified by a third party (*e.g.*, via virus, malware, or intrusion) or that the information is complete. #### HYPERTEXT LINKS The Company may provide hypertext links to other Internet sites or resources from the Website. The Company has no control over such sites and resources and is not responsible for any damage or loss resulting from your access or use of such sites. #### PERSONAL DATA For more information, please consult the Company’s data policy, which can be consulted by clicking on the following link: ​ #### GENERAL TERMS OF USE OF THE WEBSITE For more information, please consult the Company’s general terms of use of the Website, which can be consulted by clicking on the following link: ​ #### SECURITY It is the responsibility of each Internet user to take appropriate measures to protect his or her computer from contamination by viruses and other malicious computer programs. The Company shall not be held responsible for elements beyond its control and for any damage that may be suffered by the user's terminal, and in particular smartphones, tablets, computers, software, network equipment and any other equipment used to access the Website. # Privacy Policy **Date of latest revision: 18 October 2024** *** #### 1. Introduction Up Only Co, doing business as “Usual Labs” (the “Company”, “Usual Labs”, “we”, “us” or “our”), is a French simplified joint stock company (société par actions simplifiée) organised under the laws of France, having its registered office located at 1 rue de Stockholm, 75008 Paris, France, and registered with the Commercial and Companies Register of Paris under number 919 540 427. Usual Labs is committed to protecting and respecting your privacy. This Privacy Policy describes how and why we may collect and use your Personal Data when you access or use the websites and user interfaces made available at: and (together, the “Site”), and any related support channels (together with the Site, the “Services”). For purposes of clarity, Usual Labs (Up Only Co) is the entity responsible for the development and operation of the user interface (“UI”) made available through the Site, and acts in that capacity as mandated by the Usual DAO. This Privacy Policy governs Personal Data processing activities carried out by Usual Labs in connection with the Services described herein. This Privacy Policy should be read together with any legal notice, disclaimers, documentation, and general terms and conditions made available on or through the Site (as applicable). *** #### 2. Scope This Privacy Policy applies to Personal Data processed by Usual Labs in connection with: * your access to and use of the Site; * your interactions with the UI and related features made available through the Site; * communications with Usual Labs (including by email); and * cookies and similar technologies implemented on the Site, as described below. This Privacy Policy does not apply to third-party websites, services, or platforms that may be linked from the Site. *** #### 3. Definitions For the purposes of this Privacy Policy: * “Personal Data” / “Personal Information” means any information relating to an identified or identifiable natural person, as defined by applicable data protection laws, including the GDPR. * “Processing” means any operation performed on Personal Data (e.g., collection, storage, use, disclosure, deletion), as defined by the GDPR. * “GDPR” means Regulation (EU) 2016/679 (General Data Protection Regulation). * “User(s)”, “you” or “your” means any person who accesses or uses the Site or Services. * “Usual Protocol” means the set of smart contracts and related infrastructure enabling, among other things, stablecoin generation, transactions using smart contracts, and the lending, leveraging, and staking of cryptographic assets. *** #### 4. Eligibility The Services are not intended for persons under the age of 18. Usual Labs does not knowingly collect, store, or process Personal Data from individuals under 18. If Personal Data is mistakenly provided by a minor, such data will be deleted promptly upon identification or notification, insofar as Usual Labs is able to do so. Usual Labs also implements reasonable measures intended to deter use by persons who do not meet the minimum age requirement, taking into account the decentralised nature of certain protocol components. *** #### 5. Important Notice Regarding Blockchains and On-Chain Data Blockchains may provide transparency into transactions. Usual Labs does not manage or control public blockchains and is not responsible for preventing, managing, modifying, or deleting information broadcasted, recorded, or stored on a blockchain. Because the Services may involve interactions with blockchains, certain data (which may include information that could be considered Personal Data in some circumstances) may be processed and stored on-chain. On-chain data is generally immutable and may not be modified or erased for the lifetime of the relevant blockchain. Accordingly: * Usual Labs cannot guarantee the deletion, rectification, or restriction of Processing of data stored on public blockchains; and * any exercise of data subject rights may be limited with respect to data that is strictly required for blockchain operation and is not controlled by Usual Labs. You are encouraged not to include Personal Data in transaction metadata or other on-chain fields where avoidable. *** #### 6. Personal Data We May Process Depending on how you use the Services, Usual Labs may process the following categories of Personal Data: 1. Contact and communications data * Information you provide when contacting us (e.g., email address, the content of your message, and any information you choose to share). 2. Technical and usage data * Information automatically transmitted by your device and browser when you access the Site (e.g., IP address, device identifiers, browser type, operating system, referring/exit pages, timestamps, and log data), to the extent such information constitutes Personal Data. 3. Authentication and session data * Data used to maintain your session and provide authentication features through cookies or similar technologies, as further described in Section 10. 4. Blockchain-related identifiers (where applicable) * Public wallet addresses and transaction identifiers you use in connection with the Services (noting that such identifiers may be recorded on public blockchains outside Usual Labs’ control). Usual Labs does not undertake to collect any particular category of Personal Data beyond what is necessary for the purposes described in this Privacy Policy and subject to the configuration and features of the Services as made available from time to time. *** #### 7. Purposes of Processing and Legal Bases Usual Labs processes Personal Data only where permitted by applicable law, including the GDPR. The table below describes the principal purposes for which we may process Personal Data and the corresponding legal bases. Purpose Examples of Personal Data Legal Basis (GDPR)\ Provide, operate, and maintain the Site and UI Technical and usage data; authentication/session data Performance of a contract (where applicable); legitimate interests (Site security and operation)\ User authentication and session management Authentication/session data; technical data Consent (where required for cookies); legitimate interests (ensuring secure access)\ Respond to requests and provide support Contact and communications data Legitimate interests; performance of a contract (where applicable)\ Ensure security, prevent fraud/abuse, and protect our systems Technical and usage data; communications data Legitimate interests; legal obligation (where applicable)\ Compliance with legal and regulatory obligations Data relevant to compliance requests (as applicable) Legal obligation\ Establish, exercise, or defend legal claims Relevant communications and technical data Legitimate interests; legal claims Where Processing is based on consent, you may withdraw your consent at any time (see Section 9), without affecting the lawfulness of Processing prior to withdrawal. *** #### 8. Disclosure of Personal Data Usual Labs may disclose Personal Data in the following circumstances, to the extent permitted by applicable law: * Service providers and processors acting on behalf of Usual Labs (e.g., hosting, security, IT, support tooling), subject to appropriate contractual safeguards. * Corporate partners and third parties acting on behalf of Usual Labs, where necessary to provide the Services or support operations. * Professional advisers (e.g., legal, audit, accounting) where necessary. * Regulators, law enforcement, or competent authorities where we are required to do so by law or where disclosure is reasonably necessary to protect rights, safety, and security. Where Personal Data is disclosed to processors, Usual Labs will require that such processors process Personal Data only on documented instructions and implement appropriate security measures. *** #### 9. International Transfers Personal Data may be processed and stored outside the jurisdiction in which you reside. Where transfers of Personal Data occur outside the European Economic Area (EEA) to a country not subject to an adequacy decision, Usual Labs will implement appropriate safeguards where required under applicable law (such as standard contractual clauses and/or other lawful transfer mechanisms). You acknowledge that foreign authorities may, under applicable laws, have access to Personal Data processed in their jurisdiction, and that privacy standards in such jurisdictions may differ from those in your country of residence. *** #### 10. Cookies and Similar Technologies **10.1 What is a cookie?** A cookie is a small file (often alphanumeric) placed by a web server on your device to store and retrieve information. Cookies can enable, for example, session identifiers, language preferences, and other technical settings. Cookies may include (non-exhaustively): HTTP cookies, local storage (HTML5), “local shared objects” (Flash cookies), device fingerprinting techniques, operating system identifiers, and hardware identifiers. Cookies may be: * Session cookies, which expire when you close your browser; or * Persistent cookies, which remain until they expire or are deleted. **10.2 Categories of cookies** (A) Strictly necessary / functional cookies (no consent required)\ These cookies are strictly necessary to enable electronic communication or to provide a service explicitly requested by you. If you disable these cookies via your browser settings, certain parts of the Site may not function properly. (B) Other cookies (consent generally required)\ Other cookies (including, where applicable, cookies used for authentication beyond what is strictly necessary, preferences, measurement, or personalisation) are generally subject to your prior consent, which you may withdraw at any time. **10.3 Our cookie practices** The Company implements session cookies for user authentication, and consent may be requested when accessing the Site (where required). Cookies and similar technologies may be installed and/or read on your device during your visit to the Site. *** #### 11. Security Usual Labs takes reasonable steps designed to protect Personal Data from misuse, loss, unauthorised access, modification, or disclosure, including by implementing appropriate technical and organisational security measures. However, no security measure can guarantee absolute security. You are responsible for taking protective measures appropriate to your use of the Services, including keeping credentials secure and not sharing sensitive information unless you understand the purpose and recipient. *** #### 12. Data Retention Usual Labs retains Personal Data only for as long as necessary for the purposes described in this Privacy Policy and to comply with legal and regulatory requirements. Unless a longer retention period is required by law or justified by a legitimate need (e.g., disputes), the following retention periods apply: * Personal Data relating to your account (where applicable) is generally deleted five (5) years after your account is closed. * Information relating to transactions on your account (where applicable) is generally retained for five (5) years from the date of the transaction. Notwithstanding the foregoing, on-chain data recorded on public blockchains may persist independently of Usual Labs’ retention practices (see Section 5). *** #### 13. Your Rights (GDPR) Subject to applicable law and the conditions and limits set out in the GDPR, you may have the following rights in relation to your Personal Data: * Right of access: obtain confirmation as to whether Personal Data concerning you is processed and access such data and related information. * Right to rectification: request correction of inaccurate or incomplete Personal Data. * Right to erasure: request deletion of Personal Data in certain cases (e.g., where data is no longer necessary), subject to exceptions (including legal obligations and legal claims). * Right to restriction of Processing: request the limitation of Processing in certain circumstances. * Right to data portability: where applicable, receive Personal Data you provided to us in a structured, commonly used, machine-readable format, and/or have it transmitted to a third party where technically feasible (this right applies in specific circumstances). * Right to withdraw consent: where Processing is based on consent, withdraw consent at any time. * Right to define post-mortem instructions (where applicable under French law): provide guidance regarding the retention, deletion, and communication of your Personal Data after death. Important limitation (blockchain): the exercise of these rights may be limited for Personal Data that is required for the operation of blockchains or is stored on public blockchains not controlled by Usual Labs, which may be immutable (see Section 5). **13.1 How to exercise your rights** You may exercise your rights: * By email: * By post: Up Only Co / Usual Labs, 1 rue de Stockholm, 75008 Paris, France Usual Labs will aim to respond within fourteen (14) days, subject to the complexity and volume of requests and any applicable legal requirements. Where Usual Labs has reasonable doubt as to the identity of the requester, we may request additional information necessary to confirm identity and, where appropriate, a copy of an identity document bearing the signature of the holder. *** #### 14. Third-Party Links The Site may contain links to third-party sites and resources. This Privacy Policy applies only to the Site and Services operated by Usual Labs. Usual Labs does not control third-party sites and is not responsible for their content, policies, or practices. You should review the privacy policies and terms of any third-party site you visit. *** #### 15. Changes to this Privacy Policy Usual Labs may revise, modify, update, or supplement this Privacy Policy at any time, at its sole discretion. Where required, we will provide notice through the Site. The revised Privacy Policy will be posted on the Site and will apply from the date of posting. *** #### 16. Complaints to the Supervisory Authority If you consider that we have not responded adequately to your request or questions, you have the right to lodge a complaint with the competent supervisory authority in France, the CNIL: * Online: * Postal address: CNIL – 3 Place de Fontenoy – TSA 80715 – 75334 Paris Cedex 07 – France *** #### 17. Reference Texts and Additional Information * GDPR text (EUR-Lex): * CNIL – GDPR information: * CNIL – Understanding your rights: Additionally, pursuant to Articles L.223-1 et seq. of the French Consumer Code, if you are a consumer, you may object at any time to telephone canvassing by registering free of charge on: [www.bloctel.gouv.fr](http://www.bloctel.gouv.fr). *** #### 18. Contact If you have any questions, comments, or concerns regarding this Privacy Policy, you may contact us at: * Email: * Postal address: Up Only Co / Usual Labs, 1 rue de Stockholm, 75008 Paris, France Up Only Co (Usual Labs) is a French simplified joint stock company (société par actions simplifiée) organised under the laws of France, having its registered office at 1 rue de Stockholm, 75008 Paris, France, and registered with the Commercial and Companies Register of Paris under number 919 540 427. # Terms of Services ### Usual Protocol TERMS OF USE AND SERVICES\ **Date of the latest revision: 03/21/2025** PLEASE READ THESE TERMS OF USE AND SERVICE CAREFULLY BEFORE USING THE SERVICES. BY USING THE SERVICES, YOU AGREE TO BE LEGALLY AND UNCONDITIONALLY BOUND BY THESE TERMS. APPART FROM THESE TERMS, ALL INFORMATION PROVIDED IN CONNECTION WITH YOUR ACCESS AND USE OF THE INTERFACE AND THE SERVICES IS FOR INFORMATIONAL PURPOSES ONLY. ADDU DRAWS THE ATTENTION OF USERS TO THE RISKS INHERENT IN THE USE OF CRYPTO ASSETS AND BLOCKCHAIN TECHNOLOGY. BEFORE USING THE PROTOCOL, PLEASE READ SECTION 4.3 CAREFULLY. BEFORE MAKING ANY FINANCIAL, LEGAL, TECHNICAL, OR OTHER DECISIONS INVOLVING CRYPTO ASSETS AND/OR THE SERVICES, YOU SHOULD SEEK INDEPENDENT PROFESSIONAL ADVICE FROM A LICENSED AND QUALIFIED INDIVIDUAL IN THE APPROPRIATE AREA. *** #### 1. PURPOSE OF THIS DOCUMENT **1.1 General information** The Usual Protocol, as well as other related Interfaces (as defined below) are provided by Association de Développement de la DAO Usual, a French law association having its registered office located at 10, rue de la Paix, 75002 Paris, and registered with INSEE under SIREN number 925 013 245 ("ADDU" or the “Association”) and its affiliates ("we," "us," "our").\ The Interface, as defined below, provides information and resources about the fundamentals of the protocol called "Usual" that permits, among other things, the generation of stablecoins, transactions using smart contracts, and the staking of cryptographic assets (the "Protocol"). The purpose of these terms of use (the "Terms") is to define: * the terms and conditions of use applicable to the user (the "User," "you," or "your"), when using our websites or any other related interface (the "Interface"), * the terms and conditions applicable to any other features, tools, materials, or other services offered from time to time on the Interface (the "Services"). **1.2 Definitions** ADDU: means the User's co-contracting party, the Association de Développement de la DAO Usual (ADDU), a French law association having its registered office located at 10, rue de la Paix, 75002 Paris, and registered with INSEE under SIREN number 925 013 245, developing and organizing the Usual DAO, composed of Usual Token holders.\ Airdrop: means the process of distribution of tokens for free to Users who have participated in an airdrop through a dedicated interface, such operation which may be carried out by ADDU at its own discretion.\ AML (Anti Money Laundering): means laws, regulations, and procedures designed to prevent the use of financial systems for the purposes of concealing, disguising, or transforming illegal proceeds derived from criminal activities, financing terrorism, or other illicit activities. As provided in Article 4.1 of these Termes. Users expressly warrant that they are not involved in any activities or transactions that violates AML laws or regulations, and that they will not use the Protocol to facilitate money laundering, terrorist financing, or any other illegal or prohibited activities. Users further agree to comply with any applicable AML requirements in their jurisdiction and acknowledge that the Association may take measures to ensure compliance with AML regulations, wherever possible, given the decentralized nature of the Protocol.\ Crypto assets: means tokens used by Users as a currency and unit of value (coins), such as bitcoin (BTC), Ethereum (ETH), or stablecoins, which aim to maintain a fixed parity with a traditional currency; or tokens with a utility function (utility tokens), granting access rights to products or services offered by the issuer.\ Connect wallet: means the tab on the Interface available to Users to connect their noncustodial wallet. A non-custodial wallet is a type of cryptocurrency wallet that gives Users full control over their Crypto assets, as they hold the private keys. Unlike custodial wallets, where a third party manages the private keys on behalf of the user, non-custodial wallets allow Users to store, send, and receive Crypto assets without relying on an intermediary. This type of wallet may be considered more secure because it eliminates the risks associated with third-party custodians, but it also requires Users to take responsibility for safeguarding their private keys to avoid losing access to their Crypto assets. As specified below, ADDU or any affiliate company may not be liable in such cases where the User loses access to their Crypto assets due to the loss or mismanagement of private keys. Contact address: means the email address to which the User may request information: \ Interfaces: means the website: and the front end to the Protocol: Jurisdiction: means France, as provided in Article 8.9 of these Terms.\ Prohibited Person: means a person who is a resident or national of the following countries: Afghanistan, Albania, Angola, Azerbaijan, Bosnia Herzegovina, Bahamas, Barbados, Burma, Botswana, Burkina Faso, Burundi, Cayman Islands, Cambodia, Cameroon, Crimea (Ukraine), Chad, China, Congo, Democratic Republic of Congo, Cuba, Ethiopia, Eritrea, Fiji, Palau, Ghana, Guinea, Guinea-Bissau, Haiti, Iran, Iraq, Jamaica, Jordan, Lao People's Democratic Republic, Uganda, Liberia, Libya, Madagascar, Mali, Malta, Morocco, Mozambique, Nicaragua, Nigeria, North Korea, Pakistan, Panama, Philippines, Puerto Rico, Russia, Senegal, Somalia, Sri Lanka, Sudan, Syria, Tajikistan, Trinidad and Tobago, Turkey, Turkmenistan, United States, Uzbekistan, Vanuatu, Venezuela, Virgin Islands, Yemen, Zimbabwe and any resident or national of a country otherwise subject to a U.S. Government embargo, or that has been designated by the U.S. Government as a terrorist-supporting country, and (ii) are not listed on any U.S. Government list of prohibited or restricted parties.\ Prohibited US Person: means a person who is a resident or national of the United States of America.\ USD0: means a liquid deposit token distributed to Users in exchange of deposit eligible on chain assets into the Protocol. For more information, please consult the following link: (information with no contractual value).\ USD0++: means a token distributed to Users who use USD0 in various ways, such as contributing liquidity or locking USD0 and who would then be distributed Usual Tokens if made available by ADDU. For more information, please consult the following link: (information with no contractual value).\ Usual DAO: means the Usual decentralized autonomous organization.\ Usual Labs: means Up Only Co, a software company contributing to the development of the Protocol, registered at 1, rue de Stockholm, 75008 Paris, with the Commercial and Companies Register of Paris under number 919 540 427.\ Usual Tokens: means the Protocol's governance tokens which may be released by ADDU at its own discretion. Its primary utility lies in empowering Usual Tokens holders to participate directly in the governance processes of the Usual DAO, effectively granting them a say in decision-making and the future direction of the Protocol. This means that Usual Tokens holders may have the opportunity to vote on proposals, decide upon the development roadmap, and contribute to key decisions that shape the Protocol’s evolution. However, such rights do not constitute ownership or equity in the Association or Usual Labs and may not grant Usual Tokens holders any legal rights to participate in the formal governance of the Association or Usual Labs, such as shareholder rights. For more information, please consult the following link: (information with no contractual value). *** #### 2. ACCEPTANCE OF TERMS – CHANGE OF TERMS Before using any of the Services, you must first agree to these Terms. By accessing the Services, you expressly confirm that you fully and irrevocably agree to these Terms. If you do not agree to any part of these Terms, you must cease using the Services.\ You also agree that your personal data and electronic communications on the Interface will be processed in accordance with our privacy policy, which is incorporated herein by reference and available at ( To the maximum extent permitted by applicable law, we reserve the right, at our sole discretion, to modify or replace the Terms at any time. The most current version of these Terms will be posted and accessible via the Interface. You are responsible for reviewing and familiarizing yourself with such modifications\ You will be deemed to have accepted all modifications and revisions by continuing to use any of the Services.\ You may contact us with questions about your use of the Services at . When you communicate with us electronically, you consent to receive communications from us electronically. *** #### 3. SERVICES **3.1 Information on the Protocol** The Interface is provided as an informational resource about the fundamentals of the Protocol, which is a decentralized finance (“DeFi”) infrastructure, community-governed Protocol deployed on multiple blockchain networks and systems, and provides information about the wider Usual ecosystem, governance, community, and various interfaces and integrations to the Protocol.\ The Protocol is based on: * an open-source solution for which anyone can permissionlessly build or suggest improvement; and * a set of Smart Contracts developed in a modular approach and operating on the Ehtereum blockchain. The Protocol enable Users to: * deposit assets via its front end: Users deposit eligible on chain assets into the Protocol in exchange of USD0 tokens and representing the initial value of the deposit within the Protocol. * earning rewards: Users may utilize USD0 in various ways, such as contributing liquidity or locking USD0 in exchange of USD0++. By doing so, Users may be distributed Usual Tokens. * governance: Users may – when the Usual Tokens will be released which may be carried out by ADDU at its own discretion – be able to utilize Usual Tokens to participate in the governance of the Protocol. All information provided in connection with your access and use of the Interface and the Services is for informational purposes only.\ You should not take, or refrain from taking, any action based on the information contained on the Interface or any other information that we make available at any time, including blog posts, data, articles, links to third-party content, Discord content, news feeds, tutorials, tweets, and videos. Before making any financial, legal, technical, or other decisions involving crypto assets and/or the Services, you should seek independent professional advice from a licensed and qualified individual in the appropriate area. **3.2 We are software developers in the Protocol ecosystem** The Protocol is deployed on multiple blockchain-based networks, and ADDU is not responsible for the operation of such networks.\ It is important to understand that neither we nor any affiliated entity is a party to any transaction on the blockchain networks underlying the Protocol; we do not have possession, custody, or control over any crypto assets appearing on the Services; and we do not have possession, custody, or control over any User’s funds. Further, we do not store, send, or receive any crypto assets. You understand that when you interact with any Protocol smart contracts, you retain control over your crypto assets at all times. The private key associated with the wallet address from which you transfer crypto assets is the only private key that can control the crypto assets you transfer into the smart contracts. **3.3 License to use our Services** We grant you a license to use our Service. Contingent upon your ongoing compliance with these Terms, we grant you a personal, worldwide, revocable, non-exclusive, and non-assignable license to use the software provided as part of our Services. The only purpose of this license is to allow you to use and enjoy the Services solely as permitted by these Terms.\ We own any and all rights, titles, and interests in and to the Services, including, without limitation, any and all copyrights to any content, code, data, or other materials that you may access or use on or through the Services; except as expressly set forth herein, your use of or access to the Services does not grant you any ownership or other rights therein.\ We may use and share your feedback. Any comments, bug reports, ideas, or other feedback that you may provide about our Services on the Contact address, including suggestions on how we might improve our Services, are entirely voluntary. You agree that we are free to use or not use any feedback that we receive from you as we see fit, including copying and sharing such feedback with third parties, without any obligation to you. **3.4 Fees** Absence of ADDU’s fees. ADDU does not – itself – charge any fees to Users for the use of Services or the Interface. Apart from providing the Usual front end through the Interface, the Association does not provide any Services per se to Users or deliver, hold, and/or receive payment for crypto assets.\ Gas fees. However, note that in connection with your use of the Services, you agree to bear all costs necessary to conduct a transaction on the blockchain, such as gas fees. We attempt to provide accurate cost information, but this information is highly volatile and can change quickly without Users necessarily being aware of these changes. *** #### 4. USER’S REPRESENTATIONS & WARRANTIES AND ACKNOWLEDGEMENTS **4.1 User’s representations & warranties** You hereby represent and warrant, at all times during the use of the Services, that you: * Comply at all times with the laws (including notably AML regulations): * Your use conforms with and does not breach the laws and in particular any applicable law in the jurisdiction in which you are located, including notably AML regulations, and you will not be using the Services for, nor will promote or facilitate, illegal activity (including, without limitation, money laundering, financing terrorism, tax evasion, buying or selling illegal drugs, contraband, counterfeit goods, or illegal weapons). * You are not engaged in any illegal trade, money laundering activities, or activities related to the financing of terrorism and will not be exploiting the Services for any unauthorized commercial purpose. * Neither you nor the geographical locality in which you reside or are domiciled or located are the subject of economic sanctions from the United Nations, the United States of America, or the European Union. * Neither you nor any of your affiliates is owned or controlled by a sanctioned person or involved in any transaction, transfer, or conduct that is likely to result in you or your affiliates becoming a sanctioned person or people. * Neither you nor any of your affiliates is a politically exposed person. * You will not use the Services for any fraudulent or dishonest purpose. * You will not harvest or otherwise collect information from the Services for any unauthorized purpose. * You will not attempt to conceal any non-compliance by you with any laws or these Terms by using a VPN or proxy or any other method or use the Services under false or fraudulent pretenses or otherwise being deceitful. * Are not a Prohibited US Person or a Prohibited Person: * In using this Interface, you confirm that you are not located in, incorporated or otherwise established in, or a citizen or resident of a jurisdiction listed hereabove in Article 1.2. * You represent and warrant that you are not a citizen or resident of such prohibited jurisdictions, as listed hereabove in Article 1.2 and You agree not to use the Services if you are located in, or a resident of such jurisdictions. * Shall not affect the functionality or operation of the Services: * You will not upload or transmit viruses, worms, Trojan horses, time bombs, cancel bots, spiders, malware, or any other type of malicious code that will or may be used in any way that may affect the functionality or operation of the Services. * You will not interfere with or circumvent the security features of the Services or any third party’s systems, networks, or resources used in the provision of Services. * You will not engage in any attack, hack, denial-of-service attack, interference, or exploit of any smart contract in connection with the use of the Service (and operations performed by a user that are technically permitted by a smart contract may nevertheless be a violation of our Agreement, including these Terms, and the law) nor engage in any anticompetitive behavior or other misconduct. * Are aware of related risks: * By utilizing the Services or interacting with the Interface in any way, you represent that you perfectly understand the inherent risks associated with smart contracts and cryptographic systems (included but not limited to the volatility of cryptocurrencies, risk of regulatory actions, risks of technical issues) as disclosed thereafter and warrant that you have a very good understanding of the usage of cryptographic assets. * Shall not do any trolling activities: * You will act toward us with respect and integrity and will not subject us to any abusive or disrespectful acts, including trolling on social media. * You will not interfere with other users’ access to or use of the Services. * Have the legal capacity and sufficient experience to use the Services: * You are of the legal age of majority in your jurisdiction as is required and of sufficient mental age, maturity, and capacity to accept these Terms and use the Services. * You are fully able and competent to enter into the terms, conditions, obligations, affirmations, representations, and warranties set forth in these Terms and to abide by and comply with these Terms. * You have knowledge of and experience in the crypto asset space and are familiar with the functioning and intricacies of crypto assets including ERC20 tokens and with decentralized finance and decentralized exchanges and markets. * You further represent that you are legally permitted to use the Services in your jurisdiction. You further represent that you are responsible for ensuring compliance with the laws of your jurisdiction and you acknowledge and expressly agree that we shall not be liable for your compliance with such laws. * No breach of Intellectual Property Rights: * Your use of the Services does not and will not violate any intellectual property rights. You will not engage in transactions involving items that infringe or violate any copyright, trademark, right of publicity or privacy or any other proprietary right under the law, including but not limited to sales, distribution, or access to counterfeit music, movies, software, or other licensed materials without the appropriate authorization from the rights holder; use of our intellectual property, name, or logo, including the use of our trade or service marks, without express consent from us or in a manner that otherwise harms ADDU; any action that implies an untrue endorsement by or affiliation with ADDU. * You will not attempt to or actually copy or make unauthorized use of all or any portion of the Services, including by attempting to reverse compile, reformatting or framing, disassemble, reverse engineer any part of the Services. * Take your own responsibility: * You make your own independent decisions in the way you are using the Services. * You are fully and solely responsible for the security of your wallet(s) and passwords, seed phrases, and private keys. If you provide or make available your passwords, seed phrases, or private keys to anyone else, you are fully and solely responsible for any consequent use of these. * You are fully and solely responsible for obtaining your own independent legal, financial, accounting, and tax advice. **4.2 User’s Acknowledgements** By your continuing use of the Services, you acknowledge: * Decentralization of the Protocol: * The Protocol is fully decentralized. All transactions entered into by Protocol users are carried out by them on a peer-to-peer basis and ADDU has no control over such transactions. * No agency, advisory or partnership: * We do not represent the buyer, seller, liquidity provider, offeror of tokens, or any participant or transacting party on the Protocol. * You alone are responsible for securing your private keys. We do not have access to your private keys. Due to the non-custodial and decentralized nature of the technology, we are not intermediaries, agents, advisors, or custodians, and we do not have a fiduciary relationship or obligation to you regarding any other decisions or activities that you affect when using our Services. We neither are accountants, tax advisors, legal representatives, or financial advisors of the Protocol. * You acknowledge that we, for the avoidance of doubt, do not have any information regarding any users, users’ identities, or services beyond what is available or obtainable publicly via the blockchain. We are not responsible for any activities you engage in when using Services, and you should understand the risks associated with crypto assets, blockchain technology generally, and our Services. * All contributors to the ecosystem around the Protocol are independent of us, and we will not have and do not assume any liability or responsibility for their actions or omissions. * We have no control over the Protocol’s operations: * The Protocol is deployed on multiple blockchain-based networks, and we are not responsible for the operation of such networks. * The software underlying blockchain networks on which the Protocol is deployed, including, for example, the Ethereum blockchain, is open source, which means that anyone can use, utilize, and build on top of it. By using the Services, you acknowledge and agree (i) that we are not responsible for the operation of the blockchain-based software and networks underlying the Protocol, (ii) that there exists no guarantee of the functionality, security, or availability of that software and networks, and (iii) that the underlying blockchain-based networks are subject to sudden changes in operating rules, such as those commonly referred to as “forks”. * No recommendations: * By participating in the Protocol, you acknowledge that you are doing so on the basis of your own enquiry, without solicitation or inducement by ADDU. * No information published on the Protocol about any of the crypto assets, trading strategies, or other financial strategies should be construed as being a promotion, solicitation, recommendation, or marketing of any kind in relation to any of these, and we have no knowledge of the financial circumstances or objectives of any Protocol’s user or any expertise in what might constitute sensible financial practice for them. There is no assurance, representation, or warranty that your use of the Services: * will provide a profit; * will not incur significant losses; or * will attain your commercial or other objectives. Automated collection and disbursement of proceeds by smart contracts:\ You agree to the automated collection and disbursement of proceeds by smart contracts. You acknowledge and agree that all transactions accessed through the Services will be automatically processed using one or more blockchain-based smart contracts. By engaging in transactions using the Services, you acknowledge and consent to the automatic processing of all transactions in connection with using the Services. You further acknowledge and agree that the applicable smart contract will dictate how the funds of a transaction and ownership of crypto assets are distributed. **4.3 Assumption of risks** The Association draws the attention of Users to the risks inherent in the use of crypto assets and blockchain technology. Before using the Protocol, please read this section carefully. Risks inherent to blockchain activities\ We do not own or control any of the underlying software through which blockchain networks are formed. In general, the underlying software for blockchain networks tends to be open source such that anyone can use, copy, modify, and distribute it. By using the Services, you acknowledge and agree (i) that we are not responsible for the operation of the underlying software and networks that there exists no guarantee of functionality, security, or availability of such software and networks; and (ii) that crypto assets are highly volatile because of a range of factors which include, but are not limited to, rate of adoption, speculation, technology changes, security risks, contagion risks, systematic risks, legal and regulatory changes, and factors affecting their supply (such as the mining, minting, or issuing of new tokens, airdrops, the burning of tokens, and blockchain forks).\ You understand that Ethereum and other blockchain technologies and associated crypto assets, currencies, or tokens are highly volatile due to many factors including but not limited to adoption, speculation, technology, and security risks. You also acknowledge that the cost of transacting on such technologies is variable and may increase at any time causing an impact on any activities taking place on the Ethereum blockchain. You acknowledge these risks and represent that the Association cannot be held liable for such fluctuations or increased costs. Regulatory risks:\ The Services could be impacted by one or more regulatory inquiries or regulatory action, which could impede or limit the ability of ADDU to continue to develop, or which could impede or limit your ability to access or use the Services or Ethereum blockchain, including access to the Interface Risk of information inaccuracy:\ Although it is intended to provide accurate and timely information on the Interface, the Interface or relevant tools may not always be entirely accurate, complete, or current and may also include technical inaccuracies or typographical errors. In an effort to continue to provide you with as complete and accurate information as possible, information may be changed or updated from time to time without notice, including, without limitation, information regarding our policies. Accordingly, you should verify all information before relying on it, and all decisions based on information contained on the Interface or relevant tools are your sole responsibility and the Association shall have no liability for such decisions. Links to third-party materials (including, without limitation, websites) may be provided as a convenience but are not controlled by any entity. You acknowledge and agree that we are not responsible for any aspect of the information, content, or services contained in any third-party materials or on any third-party sites accessible or linked to the Interface or available via other relevant tools.\ No representation is made as to the accuracy, completeness, or appropriateness for any particular purpose of any pricing information distributed via the Interface. Non-private data and data storage:\ A widespread belief is that transactions involving blockchains are anonymous. In fact, a central feature of blockchains and thus, blockchain-based transactions, is that they are transparent. Your public key and your wallet address, which you need to buy or sell items on the blockchain, are visible to anyone. To the extent your public key or wallet address can be linked back to you, it would be possible for someone to determine your identity and the crypto assets you own. You therefore acknowledge that your activity relating to using is not private and may be visible to third parties, including on public blockchains. Disruptions and cyber risks:\ The functioning of the Services may be disrupted from time to time because of system overloads, software or hardware issues, power outages, errors, or instability in experimental features or issues with the functioning of other services and software on which the Interface is dependent.\ Users face the risk of cybersecurity events, which may negatively affect the operation of the Services and their availability.\ Users accept that we have no liability to them for any losses arising from any such disruptions or cybersecurity events and that we do not warrant that their use will be error-free or uninterrupted.\ Users acknowledge that it is their responsibility to ensure that any hardware and software and access credentials they use to access the Services and their wallets are kept secure. Users acknowledge that we are not liable for any security breaches or other failings of any such systems. *** #### 5. DISCLAIMER OF WARRANTIES – LIABILITY **5.1 No right of withdrawal** Consumer Users – within the meaning of the Consumer Code – expressly acknowledge and agree that the Services are to be carried out immediately.\ Therefore, under these Terms, Users that are considered as consumers – within the meaning of the Consumer Code – expressly waive their right of withdrawal, should such right exist, and give their express consent for the execution of the Terms and the Services before the end of the right of withdrawal.\ Therefore, these Terms are concluded as soon as they are accepted by the User, without both Parties having to wait for the expiration of the withdrawal period. **5.2 No warranties by ADDU** You expressly understand and agree that your use of the Services and/or the Interface is at your sole risk. The Services (including the Interface) are provided "as is" and "as available," without warranties of any kind, either express or implied, including, without limitation, implied warranties of merchantability, fitness for a particular purpose, or non-infringement. You acknowledge and expressly agree that we have no control over, and no duty to take any action regarding: which users gain access to or use the Services; what effects the content of the Interface may have on you; how you may interpret or use the content of the Interface.\ There are no warranties that access to the Interface and/or the Services will be continuous, uninterrupted, timely, or secure, that the information made available via, contained on, or used by the Interface, will be accurate, reliable, complete, or current, or that the Services will be free from errors, defects, viruses, or other harmful material. You acknowledge and expressly accept that the Interface and/or the Services (a) may contain bugs, errors, and defects, (b) may function improperly or be subject to periods of downtime and unavailability, (c) may result in total or partial loss or corruption of data, and (d) may be modified at any time, including through the release of subsequent versions, all with or without notice to you.\ No advice, information, or statement that any contributor to the Protocol makes should be treated as creating any warranty concerning the Services.\ We do not endorse, guarantee, or assume responsibility for any advertisements, offers, or statements made by third parties concerning the Services or the Interface.\ You acknowledge and expressly agree that we are not responsible for transferring, safeguarding, or maintaining your private keys or any crypto currency associated therewith. If you lose, mishandle, or have stolen associated crypto currency private keys, you acknowledge and expressly agree that you may not be able to recover associated crypto assets, and that we are not responsible for such loss. You acknowledge and expressly agree that we are not responsible for any loss, damage, or liability arising from your failure to comply with the terms hereunder. **5.3 Limitation of Liability** You acknowledge and expressly agree that you assume full responsibility for your use of the Services and/or the Interface. You acknowledge and expressly agree that any information you send or receive during your use of the Services and/or the Interface may not be secure and may be intercepted or acquired by unauthorized parties. You acknowledge and expressly agree that your use of the Services and/or the Interface is at your own risk.\ Recognizing such, you understand and agree that, to the fullest extent permitted by applicable Law, we will not be liable to you for any direct, indirect, incidental, special, consequential, punitive, exemplary, or other damages of any kind, including without limitation damages for loss of profits, goodwill, use, data, or other tangible or intangible losses or any other damages based on contract, tort, strict liability, or any other theory (even if we had been advised of the possibility of such damages), resulting from: * the Services and/or the Interface; * the use or the inability to use the Services and/or the Interface; * unauthorized access to or alteration of your transmissions or data; * statements or conduct of any third party on the Services and/or the Interface; * any actions we take or fail to take as a result of communications you send to us; * errors; * technical malfunctions; * failures, including public utility or telephone outages; * omissions, interruptions, latency, deletions, or defects of any device or network, providers, or software (including, but not limited to, those that do not permit participation in the Services); * any injury or damage to computer equipment; * inability to fully access the Services and/or the Interface or any other website; * theft, tampering, destruction, or unauthorized access to, images or other content of any kind; * data that is processed late or incorrectly or is incomplete or lost; * typographical, printing, or other errors, or any combination thereof; or * any other matter relating to the Services and/or the Interface. The Association shall not be liable for any losses, damages, or liabilities arising directly or indirectly from any unauthorized access, breach, or hack of the underlying Protocol, or any third-party software, hardware, or services utilized by the User. The User acknowledges and agrees that decentralized finance (DeFi) protocols and blockchain technology involve inherent risks, including potential vulnerabilities in the Protocol or the User Devices, which may result in partial or total loss of funds. The Association does not guarantee the security or functionality of the Protocol, and it is the User's sole responsibility to take all necessary precautions to protect their assets and private keys.\ ADDU may, at its sole discretion, decide to conduct an Airdrop of Usual tokens to eligible Users. Participation in the Airdrop is not guaranteed, and ADDU reserves the right to modify, suspend, or cancel the Airdrop at any time, without notice or liability.\ ADDU shall not be liable for any losses, damages, or liabilities arising from the User’s failure to receive, claim, or secure the distributed Usual tokens, including, but not limited to, losses due to technical issues, user errors, incorrect wallet addresses, third-party service failures, or unauthorized access to the User’s wallet. The User acknowledges that participation in the Airdrop involves inherent risks and accepts full responsibility for securing any tokens received. **5.4 Indemnification** You agree to release and to indemnify, defend, and hold harmless ADDU and its affiliates, from and against any and all losses, liabilities, expenses, damages, costs (including attorneys' fees, fees or penalties imposed by any regulatory authority and court costs) claims, or actions of any kind whatsoever arising or resulting from your use of the Services and/or the Interface, your violation of these Terms, your violation of any Law, rule, or regulation, or the rights of any third party, and any of your acts or omissions that implicate publicity rights, defamation, or invasion of privacy. *** #### 6. LIMITATION OF PARTICIPATION – TERMINATION – ACCOUNT CLOSURE **6.1 Termination by Us** To the maximum extent permitted by applicable law, we may at any time and without liability, terminate, suspend, or limit your use of the Services, including, but not limited to, where: (a) we reasonably suspect you of acting in breach of these Terms and/or all other applicable terms; (b) we are required to do so by applicable Law, regulation, or any court or other authority to which the use of the Services is subject to in any jurisdiction; (c) we suspect that your use of the Services is potentially connected to any unlawful activities (including but not limited to money laundering, terrorism financing, and fraudulent activities); (d) we have concerns that the Services are being used in a fraudulent or unauthorized manner.\ You shall not be entitled to any payment, compensation, or damages whatsoever from us in relation to any suspension, limitation, or termination of your use of the Services for any reason whatsoever. Any suspension, limitation, or termination of your use of the Services for any reason whatsoever shall not release you from any liability or responsibility on your part, which at the time of such suspension, limitation, or termination, has already accrued.\ The rights of suspension, limitation, and termination under these Terms shall be without prejudice to any other rights or remedies which we may have (whether under these Terms, applicable law, or otherwise). **6.2 Consequences of Termination** You will no longer be entitled nor able to use the Services. *** #### 7. PROCESSING OF PERSONAL DATA The data protection and cookie policy is available at . *** #### 8. GENERAL PROVISIONS **8.1 Third-Party Links** The Interface may provide, or third parties may provide, links to other websites, applications, or resources. Because we have no control over such sites, applications, and resources, you acknowledge and expressly agree that we are not responsible for the availability of such external sites, applications, or resources, and do not endorse and are not responsible or liable for any content, advertising, products, or other materials on or available from such sites or resources.\ You further acknowledge and agree that we shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any such content, goods, or services available on or through any such site or resource # Analytics Track Usual Protocol’s performance, collateral composition, token metrics, and DeFi activity using the platforms and dashboards below. *** ## RWA.xyz [RWA.xyz](https://app.rwa.xyz/assets/USD0) provides real-time visibility into USD0’s collateral composition and Real-World Asset (RWA) backing. Use this dashboard to verify: * **Total collateral value** backing USD0 (real time) * **Collateral composition breakdown**, including Hashnote USYC, eUSD0 (Euler USL), USUALM, and other accepted assets * **RWA provider diversification** across institutional tokenizers * **On-chain reserve verification** — collateral is on-chain and auditable by anyone at any time USD0 is fully backed by tokenized US Treasury Bills and repurchase agreements, with collateral verifiable on-chain rather than via periodic attestations. RWA.xyz is the primary third-party tool for independent verification of this backing. {% embed url="" %} *** ## Dune Analytics The community-maintained [Dune dashboard](https://dune.com/9992d/usual) provides comprehensive on-chain analytics for the Usual Protocol ecosystem: * Key metrics include: * **USD0 supply and minting/redemption activity** across Ethereum, Arbitrum, Base, and BNB Chain * **bUSD0 (formerly USD0++) bond metrics** — total locked TVL, maturity profile, and secondary market pricing * **USUAL token distribution and circulating supply** — daily emissions (\~1.35M USUAL/day post-disinflation), cumulative distributions, and bucket-level breakdowns (USUALx, bTOKEN, LP rewards, DAO/Foundation, insiders) * **USUALx staking data** — total staked, exchange rate appreciation, unstaking activity, and Revenue Switch distributions * **Liquidity depth and trading volumes** across Curve, Uniswap, and other DEXs * **Revenue Switch epoch data** — weekly USD0 distributions to locked USUALx stakers * **Collateral provider flows** — direct and indirect minting volumes through the DaoCollateral and SwapperEngine contracts *** ## DeFi Llama [DeFi Llama](https://defillama.com/stablecoin/usual-usd) tracks USD0 in the broader stablecoin landscape, including: * **USD0 market capitalization and supply trends** over time * **Chain-by-chain distribution** — USD0 is deployed on Ethereum (primary), Arbitrum, Base, and BNB Chain * **Stablecoin market share ranking** — Usual has achieved a position in the Top 15 among stablecoins and is recognized as the leading EU stablecoin * **TVL comparisons** with other stablecoin protocols * **Historical peg performance** — USD0 maintains its $1 peg through full collateral backing, arbitrage mechanisms, and the Counter Bank Run Mechanism {% embed url="" %} *** ## CoinGecko [CoinGecko](https://www.coingecko.com/en/coins/usual-usd) provides market data for USD0 and the USUAL governance token: * **Live price, trading volume, and market capitalization** for USD0 and USUAL * **Exchange listings** — USUAL is available on Binance, Kraken, OKX, and other major exchanges * **Historical price charts** for USD0 (peg tracking) and USUAL (governance token performance) * **Supply metrics** — total supply capped at 3.0 billion USUAL (revised from 4.0B following the November 2025 disinflation governance vote) {% embed url="" %} *** ## Key Contract Addresses for On-Chain Verification If you prefer to verify protocol metrics directly on-chain, the core **Ethereum** contracts are listed below: | Token / Contract | Address | | ----------------- | -------------------------------------------- | | **USD0** | `0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5` | | **bUSD0** | `0x35D8949372D46B7a3D5A56006AE77B215fc69bC0` | | **USUAL** | `0xC4441c2BE5d8fA8126822B9929CA0b81Ea0DE38E` | | **USUALx** | `0x06B964d96f5dCF7Eae9d7C559B09EDCe244d4B8E` | | **DaoCollateral** | `0xde6e1F680C4816446C8D515989E2358636A38b04` | | **SwapperEngine** | `0xB969B0d14F7682bAF37ba7c364b351B830a812B2` | | **Distribution** | `0x75cC0C0DDD2Ccafe6EC415bE686267588011E36A` | All collateral backing USD0 is held on-chain and verifiable in real time—no reliance on periodic attestations or trust in third-party attestors is required. # Risk Policy ### Risk Policy ### Principles At Usual, risk management is foundational to every layer of the protocol. USD0 must remain fully backed by high-quality, diversified collateral at all times, preserving its 1:1 peg with the US dollar and protecting capital for every holder. Our commitment to a conservative, low-risk profile is not aspirational—it is enforced programmatically through smart contracts, governed by the DAO, and verified on-chain in real time. The cornerstone of this philosophy is **collateral diversification** across multiple tokenized Real-World Asset (RWA) providers, money market funds, and short-duration US government securities. By distributing exposure across independent counterparties, custodians, and asset managers, Usual mitigates concentration risk and reduces the impact of any single point of failure—whether at the tokenizer, custodian, or banking level. Risk management is operationalized in the protocol via: * **Continuous on-chain monitoring** of collateral composition, duration, and value. * **Regular stress testing and scenario analysis** modeled on the most extreme interest-rate movements observed in the last 30 years. * **Dynamic portfolio rebalancing** via the Multi Collateral Controller, which adjusts incentives and triggers corrective actions when the portfolio drifts from its optimal composition. * **A dedicated insurance fund** that can absorb collateral losses and restore the USD0 peg under adverse conditions. In the unlikely event that USD0 becomes undercollateralized, the **Counter Bank Run Mechanism (CBR)** can activate—burning USD0 from the insurance fund to increase the salvageable redemption value per token and, if necessary, temporarily pausing minting to focus protocol activity on re-pegging. The sections below define the risk categories, parameters, and mitigation strategies governing USD0 collateral management. > **Note (KB update required):** This draft has not been updated from your internal KB. If you provide the relevant KB entries (or the updated parameter values and requirements), I can incorporate them while keeping GitBook-compatible Markdown. *** ### Financial Risk Financial risks arise from movements in interest rates, exchange rates, and the credit quality of assets backing USD0. Usual enforces strict, quantitative limits on each category, with layered controls designed to detect and correct deviations before they threaten the peg. #### Interest Rate Risk Interest rate risk is the risk that changes in prevailing rates reduce the market value of collateral assets. USD0 is backed by short-duration instruments, which structurally limits (but does not eliminate) this risk. **Policy parameters** | Parameter | Limit | | ------------------------------------------- | ----------------------------- | | Maximum individual RWA duration | **< 0.5 years** | | Maximum portfolio weighted-average duration | **≤ 0.33 years** (\~4 months) | | Passive deviation tolerance | **0.25 years** | **Three lines of mitigation** 1. **First line — Duration caps**\ Every accepted RWA must have a duration below 0.5 years, and the portfolio weighted-average duration must not exceed 0.33 years. This constraint is enforced at onboarding and monitored continuously. 2. **Second line — Rolling monitoring**\ The protocol computes portfolio duration as the weighted average of all assets held in reserves. A tolerance threshold of 0.25 years is permitted for minor, passive fluctuations caused by market movements or redemption timing. Alerts trigger when: * The **180-day rolling weighted average** deviates by more than **±5%** from the previous day. * The weighted average deviates by more than **±20%** from the **SOFR** benchmark on any given day. 3. **Third line — Corrective measures**\ When duration breaches the tolerance band, the protocol initiates corrective actions, including: * **Duration adjustment:** sell or redeem higher-duration RWAs in favor of shorter-duration instruments. * **Withdrawal restrictions:** temporarily limit new minting to prevent further collateral imbalance. * **Insurance fund increase:** allocate additional yield to the insurance fund to absorb potential mark-to-market losses. **Historical stress testing** Insurance fund sizing is calibrated against the most extreme interest-rate movements recorded in the last 30 years: | Scenario | Rate change | Period | Estimated collateral impact | | -------------------------- | ----------: | ------- | ---------------------------------: | | 2022 extreme (short-term) | +75 bps | 2 weeks | \~0.33% loss at 0.33-year duration | | 2022 extreme (medium-term) | +100 bps | 1 month | \~0.33% loss at 0.33-year duration | Given the portfolio maximum average duration of 0.33 years, even these extreme scenarios would only temporarily reduce collateral value by approximately **0.33%**, within the insurance fund’s coverage capacity. *** #### FX Risk Foreign exchange (FX) risk arises if collateral assets are denominated in currencies other than USD or carry unhedged FX exposure. **Policy: Zero tolerance.** * Usual accepts **only RWAs that exclusively invest in USD-denominated assets** or are **100% FX hedged**. * No exceptions are permitted. Any RWA with unhedged non-USD exposure is categorically ineligible as collateral. **Dual-layer monitoring** 1. **Tokenizer-level:** The tokenizer team ensures the underlying portfolio contains no FX exposure and reports any deviations. 2. **Protocol-level:** Usual independently reviews tokenizer holdings on a regular basis to verify compliance with the zero-FX-risk policy. *** #### Credit Risk Credit risk is the risk that the issuer of a collateral asset defaults or suffers a credit downgrade, reducing collateral value. **Policy: Zero tolerance.** * Investments are restricted **exclusively to US Treasuries, quasi-government debt, or cash**. * **Corporate debt holdings are strictly prohibited**—no exceptions. * The protocol explicitly avoids fractional reserve banking exposure and commercial bank deposit risk. This policy was designed in direct response to the March 2023 Circle/SVB event, where Circle had 8% of USDC collateral exposed to Silicon Valley Bank, resulting in a \~5% depeg. **Active monitoring** * Regular checks and audits detect any deviation from the credit-risk policy. * If a tokenizer’s underlying portfolio is found to contain corporate debt or non-sovereign instruments, the collateral is flagged for removal through DAO governance. *** #### Insurance Fund The insurance fund is the protocol’s last line of defense against collateral value loss. It is funded from a portion of the yield generated by USD0’s underlying collateral and is maintained per Liquid Deposit Token (LDT). **Key parameters** | Parameter | Value | | ---------------------------- | ------------------------------------------------------------- | | Insurance accrual rate | \~**20%** of collateral yield (set by the DAO) | | Maximum insurance fund cap | **0.33% to 5.33%** of all USD0 LDTs | | Estimated replenishment time | \~**24 days** (at 0.33-year avg. duration and 5% coupon rate) | **Cap sizing methodology** The insurance fund cap is derived from historical Value-at-Risk (VAR) analysis, stress-testing extreme interest-rate rises that exceed any recorded in the last 30 years. The cap range of **0.33%–5.33%** accounts for: * Pure interest-rate risk scenarios (\~0.33% loss under worst-case conditions). * Counterparty exposure scenarios modeled on the SVB event (\~5% depeg as experienced by USDC in March 2023). **Salvageable redemption value** The insurance fund works by burning USD0 held in reserve, reducing effective supply and increasing per-token backing. The salvageable redemption value ( S\_{LDT} ) is: $$ S\_{LDT} = \min \left( \frac{\sum\_{i=1}^n P\_{Collateral\_i} \times C\_{Collateral\_i}}{Supply\_{LDT} - Insurance\_{LDT}}, F\_{LDT} \right) $$ Where: * ( P\_{Collateral\_i} \times C\_{Collateral\_i} ) is the total value of each collateral type ( i ). * ( Supply\_{LDT} ) is the floating supply of USD0. * ( Insurance\_{LDT} ) is the USD0 set aside in the insurance fund. * ( F\_{LDT} ) is the intended fair price ($1.00). **Counter Bank Run Mechanism (CBR)** If the salvageable redemption value falls below 1, the DAO can take emergency action: 1. **Burn insurance fund tokens** to increase the per-token collateral ratio. 2. **Temporarily pause the minting engine** to focus all activity on re-pegging. 3. **Direct minting through secondary markets only**—preventing new collateral from entering until the peg is restored. *** ### Third-Party Risk Third-party risk covers the counterparty and liquidity risks introduced by external entities that tokenize, manage, custody, and settle the RWA collateral backing USD0. #### Counterparty Risk Counterparty risk exists at three distinct layers in the collateral chain, each with dedicated mitigations. **Layer 1 — Tokenizer risk** The tokenizer creates the on-chain representation of the underlying RWA. Mitigations: * **Bankruptcy remote vehicles (BRVs):** Assets must be ring-fenced in a structure that protects them from tokenizer insolvency. * **Independent audits:** Smart contract audits and financial audits are required before onboarding and on an ongoing basis. * **Periodic performance reviews:** Regular assessments of operational health, compliance, and the technology stack. * **Experience requirement:** Only tokenizers with a proven track record and thoroughly audited technology are eligible. **Layer 2 — Fund manager risk** The fund manager makes investment decisions about the underlying portfolio. Mitigations: * **Regulated managers only:** Fund managers must be regulated and demonstrate expertise managing Treasury-focused portfolios. * **Strict investment policy:** Collateral must be invested in liquid Treasury Bills—no deviation to corporate debt, derivatives (unless explicitly hedging), or other asset classes. * **Regular assessment:** Investment decisions are reviewed periodically for ongoing compliance. **Layer 3 — Bank/custodian risk** Banks and custodians hold underlying assets and handle settlement. Mitigations: * **Highly rated institutions only:** Only custodians and banks with strong credit ratings are accepted (e.g., BNY Mellon, custodian for Hashnote’s USYC). * **Diversified banking relationships:** Exposure is spread across multiple banking partners to reduce single-institution failure risk. * **Contingency plans:** Procedures for handling institutional failures, modeled on historical events including the Lehman Brothers collapse and the Silicon Valley Bank failure. **Tokenizer due diligence process** Before a tokenizer is accepted as collateral for USD0, it undergoes a comprehensive evaluation covering: 1. **Structuring & regulation:** issuing entity, entities in the tokenization chain, financial structuring type, jurisdiction, regulatory framework, bankruptcy-remote structuration. 2. **Product description:** issuance/redemption timelines, accepted currencies, token characteristics (accumulative vs. distributive), compatible blockchains, fee structure. 3. **Asset management:** TVL, token structuring, custody setup, investment policy details. 4. **Risk policy:** technical audits, smart contract audits, known conflicts of interest, derivatives usage, counterparty risk, recovery procedures. 5. **Security requirements:** regulatory compliance, asset ring-fencing, reasonable fees, prompt redemption processes. *** #### Liquidity Risk Liquidity risk is the risk that collateral assets cannot be sold or redeemed quickly enough to meet USD0 redemption demands. **Policy parameters** | Parameter | Limit | | ---------------------------------- | ------------------------------------------- | | Maximum redemption/settlement time | **5 days** | | Minimum slippage tolerance | **Minimal** (near-zero for eligible assets) | **Mitigations** * **Eligibility restricted to highly liquid RWAs:** Collateral must be redeemable or sellable with minimal slippage within a maximum of 5 days. Assets that cannot meet this standard are categorically excluded. * **Portfolio diversification:** Collateral is distributed across multiple asset types and tokenizers, reducing the risk that any single asset class becomes illiquid during market stress. * **Duration limits reinforce liquidity:** The 0.33-year maximum portfolio duration keeps instruments close to maturity, providing a natural liquidity floor. **Current collateral composition (as of June 2025)** | Collateral | Amount (USD) | Share | | ----------------- | --------------: | -----: | | USYC (Hashnote) | $264,829,799.90 | 42.73% | | eUSD0 (Euler USL) | $287,973,599.74 | 46.46% | | USUALM | $67,035,044.15 | 10.81% | **Primary provider — Hashnote USYC** Hashnote’s USYC fund invests in reverse repurchase agreements (overnight repos) and US Government securities with T+0 to T+1 settlement into USDC or PYUSD. USYC infrastructure providers: | Role | Provider | | ------------------ | -------------- | | Custody | BNY Mellon | | Prime Broker | Marex | | Banking | Customers Bank | | Auditor | Cohen and Co | | Fund Administrator | NAV Consulting | Hashnote is regulated under **CIMA** (Cayman Islands Monetary Authority) and registered with the **CFTC** (US Commodity Futures Trading Commission). Its underlying repos are conducted through the **Depository Trust & Clearing Corporation (DTCC)**, which holds an **AA- credit rating**. *** ### Multi Collateral Controller Usual uses a **Multi Collateral Controller** to dynamically manage and rebalance the collateral portfolio backing USD0. This system maintains diversification targets in real time via economic incentives and automated triggers. #### Optimal weight calculation The controller computes optimal portfolio weights by maximizing a risk-adjusted objective function: $$ \max \left( \lambda\_3 \sum\_{i} w\_i^\* E\[R\_i] + \lambda\_4 \sum\_{i} w\_i^\* S\_i - \lambda\_1 \sum\_{i} w\_i^\* D\_i - \lambda\_2 \sum\_{i} w\_i^\* \sigma\_i \right) $$ Where: * ( E\[R\_i] ) is expected return, * ( S\_i ) is scoring/creditworthiness, * ( D\_i ) is duration, * ( \sigma\_i ) is volatility, * and ( \lambda\_1 ) through ( \lambda\_4 ) are risk-aversion coefficients set by the DAO. #### Layer 1 — Continuous incentive adjustment Collateral provider reward rates are dynamically adjusted based on the deviation between actual weights ((w\_i)) and optimal weights ((w\_i^\*)): $$ \xi\_i = \begin{cases} \alpha \times \left(1 + \Phi\_u \left(\frac{w\_i^\* - w\_i}{w\_i^*}\right)^\nu \right) & \text{if } w\_i < w\_i^* \\ \alpha \times \left(1 - \Phi\_o \left(\frac{w\_i - w\_i^*}{w\_i^*}\right)^\nu \right) & \text{if } w\_i > w\_i^\* \end{cases} $$ * Underrepresented collateral types receive **higher rewards** to attract deposits. * Overrepresented types receive **lower rewards** to discourage additional concentration. #### Layer 2 — Triggered rebalancing When passive incentive adjustment is insufficient, active rebalancing is triggered: $$ \text{Trigger Condition:} \quad \max\_{i} |w\_i - w\_i^\*| > \epsilon $$ When the maximum deviation exceeds the threshold ( \epsilon ), the protocol executes rebalancing—selling or redeeming overweight collateral and onboarding underweight assets to restore the optimal allocation. *** ### Collateral Governance A core differentiator of Usual’s risk management is that the **community governs collateral decisions** through USUAL token governance. DAO members can propose and vote on: * **Adding new collateral types** (after a tokenizer completes due diligence). * **Setting exposure limits** (maximum allocation per collateral provider). * **Adjusting risk parameters** (duration limits, insurance fund caps, rebalancing thresholds). * **Removing collateral** if a tokenizer no longer meets eligibility criteria or its risk profile deteriorates. This ensures the protocol’s risk posture evolves through community consensus rather than unilateral corporate decision-making. *** ### Summary of Risk Parameters | Risk category | Policy | Key limit | | ------------------------ | -------------------------- | --------------------------------------- | | Interest rate | Strict duration limits | Portfolio avg. ≤ 0.33 years | | FX | Zero tolerance | USD-only or 100% hedged | | Credit | Zero tolerance | US Treasuries / quasi-gov / cash only | | Liquidity | Highly liquid assets only | Redeemable within 5 days | | Counterparty (tokenizer) | Bankruptcy remote, audited | Ring-fenced assets required | | Counterparty (custodian) | Highly rated institutions | Diversified banking relationships | | Insurance fund | Yield-funded buffer | 0.33%–5.33% of USD0 supply | | Portfolio rebalancing | Dynamic controller | Triggered when deviation > ( \epsilon ) | *** ### Additional Instructions (Implementation Notes) * Update risk parameters, collateral requirements, and safety mechanisms from the KB. * Keep output in **GitBook-compatible Markdown**. # Financial Risk The primary risk to USD0 holders is the market value of the collateral backing the stablecoin. Usual Protocol applies a rigorous, multi-layered risk management framework designed to preserve USD0’s 1:1 peg and protect depositor value across four key dimensions: * **Interest rate risk** * **Foreign exchange (FX) risk** * **Credit risk** * **Counterparty / third-party risk** Each category is governed by strict policies, continuous monitoring, and escalation procedures. This document outlines the risks, the protocol’s mitigation strategies, and the **Insurance Fund**, which serves as the final line of defense. *** ## Interest Rate Risk **Interest rate risk** arises when changes in prevailing rates reduce the market value of collateral backing USD0. Because USD0 is backed by U.S. Treasury bills and reverse repurchase agreements, rising rates can temporarily reduce collateral value prior to maturity. ### Risk Policy Usual enforces strict duration limits as the primary control: | Parameter | Limit | | -------------------------------------- | ------------------------- | | **Maximum individual RWA duration** | < 0.5 years | | **Maximum portfolio average duration** | ≤ 0.33 years (\~4 months) | | **Passive deviation tolerance** | 0.25 years | ### Three Lines of Mitigation 1. **First line — Duration restrictions**\ All accepted RWAs must have a duration of less than **0.5 years**. The portfolio-wide weighted average duration must not exceed **0.33 years**, limiting price sensitivity to interest rate movements. 2. **Second line — Continuous monitoring**\ The protocol calculates a daily weighted-average collateral rate and maintains a **180-day rolling average**. Alerts are triggered when: * The rolling average deviates by more than **±5%** from the previous day’s value, or * The weighted average deviates by more than **±20%** from the **SOFR** benchmark on any given day. 3. **Third line — Corrective measures**\ If duration limits are breached or stress conditions emerge, the DAO can enact corrective actions, including: * Selling or redeeming higher-duration RWAs to reduce portfolio duration * Imposing temporary withdrawal restrictions * Increasing the Insurance Fund allocation ### Historical Stress Testing Risk parameters are calibrated against the most extreme interest rate movements observed in the last 30 years: | Scenario | Rate Change | Timeframe | Estimated Collateral Impact | | ------------------- | ----------: | --------: | --------------------------: | | 2022 extreme rise | +75 bps | 2 weeks | \~0.25% loss | | 2022 sustained rise | +100 bps | 1 month | \~0.33% loss | Given the portfolio’s maximum average duration of **0.33 years**, even these historically extreme scenarios would only temporarily reduce collateral value by approximately **0.33%**—within the coverage capacity of the Insurance Fund. *** ## FX Risk **Foreign exchange (FX) risk** would arise if any portion of USD0’s collateral were denominated in non-USD currencies, exposing the peg to exchange rate fluctuations. ### Risk Policy Usual maintains a **zero-tolerance policy** for FX risk: * Only RWAs that exclusively invest in **USD-denominated assets** are eligible as collateral; **or** * Assets must be **100% FX-hedged** to eliminate currency exposure. ### Monitoring FX compliance is enforced through **dual-layer monitoring**: 1. **Tokenizer-level monitoring**\ Each collateral provider’s team independently verifies that all underlying holdings are USD-denominated or fully hedged. 2. **Protocol-level monitoring**\ Usual’s risk team independently reviews holdings for FX compliance on a regular basis. Any deviation from the zero-tolerance policy triggers immediate corrective action, including potential removal of non-compliant collateral from the accepted asset list. *** ## Credit Risk **Credit risk** is the possibility that an issuer of a collateral asset defaults on its obligations, causing a loss in collateral value. ### Risk Policy Usual enforces a **zero-tolerance policy** for credit risk: | Eligible Instruments | Prohibited Instruments | | ----------------------------------------- | -------------------------- | | U.S. Treasury securities | Corporate debt | | Quasi-government debt (agency securities) | High-yield bonds | | Cash and cash equivalents | Structured credit products | | Reverse repurchase agreements (with DTCC) | Any leveraged instruments | Investment is restricted **exclusively** to U.S. Treasuries, quasi-government debt, and cash. Corporate debt holdings of any kind are strictly prohibited. ### Monitoring * Regular audits and checks verify that collateral providers remain compliant with the credit risk policy. * Any collateral provider found to hold non-compliant instruments is subject to immediate review and potential removal. * The primary collateral provider, **Hashnote USYC**, executes reverse repos through the **Depository Trust & Clearing Corporation (DTCC)**, which carries an **AA- credit rating**. ### Counterparty Risk Layers The protocol assesses and mitigates credit-related failure modes across three counterparty layers: | Layer | Risk | Mitigation | | -------------------- | --------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------ | | **Tokenizer** | Insolvency or operational failure | Bankruptcy Remote Vehicles (BRVs), independent audits, periodic performance reviews | | **Fund Manager** | Poor investment decisions | Regulated managers with proven track records; regular assessment of investment strategies | | **Bank / Custodian** | Institutional failure | Only highly rated institutions (e.g., BNY Mellon); diversified banking relationships; contingency plans informed by historical events (Lehman Brothers, SVB) | ### Lessons from SVB Usual’s credit risk policy was explicitly designed to avoid scenarios like the Circle/SVB event (March 2023), where Circle had **8%** of USDC collateral exposed to Silicon Valley Bank. During that episode, USDC experienced an average depeg of approximately **$0.95** (a **5%** loss). By requiring collateral invested exclusively in sovereign bonds rather than commercial bank deposits, Usual eliminates this category of counterparty exposure. *** ## Insurance Fund The **Insurance Fund** is a dedicated reserve maintained per Liquid Deposit Token (**LDT**) to hedge against potential collateral losses. It serves as the protocol’s final safety net and activates the **Counter Bank Run Mechanism (CBR)** if collateral value falls below the required threshold. ### Funding Mechanism * The Insurance Fund is funded from a portion of the yield generated by USD0’s underlying collateral. * The **insurance accrual rate** is set by the DAO at approximately **20%** of yield (aligned with industry benchmarks such as Ethena’s insurance allocation). ### Fund Size Parameters Based on historical **Value-at-Risk (VaR)** analysis simulating extreme interest rate increases exceeding any recorded in the last 30 years, the DAO can set the Insurance Fund cap within the following range: | Parameter | Value | | ------------------------------------------------------------- | -------------------------------: | | **Minimum fund cap** | 0.33% of all USD0 in circulation | | **Maximum fund cap** | 5.33% of all USD0 in circulation | | **Replenishment time** (at 0.33-year avg duration, 5% coupon) | \~24 days | The upper bound (**5.33%**) accounts for extreme scenarios including simultaneous interest rate shocks and counterparty failures analogous to the SVB event (up to **5%** depeg). ### Counter Bank Run Mechanism (CBR) The CBR is a reactive mechanism that adjusts the salvageable redemption value of USD0 using the Insurance Fund. When collateral value drops, the fund **burns USD0** to increase the per-token redemption value for remaining holders. The salvageable redemption value, (S\_{LDT}), is: $$ S\_{LDT} = \min \left( \frac{\sum\_{i=1}^n P\_{Collateral\_i} \times C\_{Collateral\_i}}{Supply\_{LDT} - Insurance\_{LDT}},; F\_{LDT} \right) $$ Where: | Variable | Definition | | ---------------------------------------------- | ---------------------------------------- | | (P\_{Collateral\_i} \times C\_{Collateral\_i}) | Total value of collateral type (i) | | (Supply\_{LDT}) | Total floating supply of USD0 | | (Insurance\_{LDT}) | USD0 held in the Insurance Fund | | (F\_{LDT}) | Target fair price of USD0 (i.e., (1.00)) | ### CBR Escalation Procedure If the salvageable redemption value falls below **$1.00**, the DAO can take the following actions, in order of severity: 1. **Burn Insurance Fund reserves**\ USD0 held in the fund is burned, reducing circulating supply and restoring the per-token collateral ratio. 2. **Temporarily pause the minting engine**\ New minting is halted to prioritize re-pegging USD0. 3. **Direct minting through secondary markets only**\ All new USD0 acquisition is routed through DEX pools, creating organic buy pressure to support the re-peg. *** ## Collateral Eligibility Requirements All accepted collateral must pass Usual’s due diligence process. The four core eligibility criteria are: | Criterion | Requirement | | ------------------------ | ----------------------------------------------------------------------------- | | **Fully Collateralized** | 100% collateralized with no leverage or fractional reserve exposure | | **Low Risk** | Invested in liquid Treasury Bills; only sovereign bonds accepted | | **Transparent** | On-chain verifiable with frequent off-chain public audits | | **Liquid** | Portfolio duration below **0.33 years**; redeemable within **5 days** maximum | ### Tokenizer Evaluation Dimensions Before any RWA tokenizer is accepted, Usual evaluates it across five areas: 1. **Structuring & Regulation** — Issuing entity, jurisdiction, regulatory framework, bankruptcy-remote structuring 2. **Product Description** — Issuance/redemption operations, fee structure, token characteristics, compatible blockchains 3. **Asset Management** — TVL, custody setup, investment policy, portfolio composition 4. **Risk Policy** — Technical and smart contract audits, counterparty risk, recovery procedures, conflicts of interest 5. **Security Requirements** — Experienced and audited technology; full regulatory compliance; assets ring-fenced in bankruptcy; reasonable fees; prompt redemption processes ### Current Collateral Composition (June 2025) | Collateral | Amount (USD) | Share | | ------------------ | -----------: | -----: | | USYC (Hashnote) | $264,829,800 | 42.73% | | eUSD0 (Euler USL) | $287,973,600 | 46.46% | | USUALM (Wrapped M) | $67,035,044 | 10.81% | ### Liquidity Risk Only RWAs that can be redeemed or sold with minimal slippage within a maximum of **5 days** are eligible. The portfolio is diversified across multiple tokenizer platforms to mitigate the risk of any specific asset class becoming illiquid. *** ## Summary of Risk Controls | Risk Category | Policy | Key Parameter | Monitoring | | ----------------- | ----------------------- | ----------------------------------------- | ----------------------------------------------------- | | **Interest Rate** | Strict duration limits | Portfolio avg ≤ 0.33 years | Daily weighted rate tracking; SOFR deviation alerts | | **FX** | Zero tolerance | USD-only or 100% hedged | Dual-layer review (tokenizer + Usual) | | **Credit** | Zero tolerance | U.S. Treasuries / quasi-gov / cash only | Regular audits; no corporate debt | | **Liquidity** | High liquidity required | Redemption within 5 days | Portfolio diversification across tokenizers | | **Counterparty** | Multi-layer mitigation | BRVs, rated custodians, contingency plans | Periodic reviews across all three counterparty layers | | **Insurance** | Funded from yield | 0.33%–5.33% of USD0 supply | DAO-set accrual rate (\~20%); \~24-day replenishment | *** ## Note on “KB” Updates This draft includes the parameters and mechanisms exactly as provided. If you share the referenced KB entries (or the updated values), I can incorporate them while keeping the document GitBook-compatible and technically consistent. # Interest Rate Risk ### Interest Rate Risk #### Definition **Interest rate risk** is the risk that changes in market interest rates reduce the value of USD0’s underlying collateral. When interest rates rise, the market value of fixed-income securities (e.g., US Treasury Bills) typically falls. Their fixed cash flows become less attractive compared to newly issued, higher-yield instruments, which pushes prices down. If collateral must be liquidated before maturity during such a period, the protocol may realize capital losses. *** ### Impact on Usual’s Collateral In an ideal setup, collateral would be held at a central bank to earn risk-free daily interest. Because the US Federal Reserve does not accept crypto stablecoins, Usual instead holds collateral in tokenized Real-World Assets (RWAs)—primarily **US Treasury Bills** and **reverse repurchase agreements (overnight repos)** via providers such as **Hashnote USYC**. This approach exposes the collateral portfolio to interest rate movements. Usual quantifies and manages this exposure using **duration**, a traditional finance metric that approximates the expected percentage price change of a bond for a given change in interest rates. **Longer duration = higher sensitivity** to rate changes. > **Example:** > > * A bond with a **5-year duration** would decrease in value by approximately **5%** if interest rates rise by **1%**. > * A bond with a **0.33-year duration** would decrease in value by approximately **0.33%** under the same rate shock. Because Usual restricts collateral to **ultra-short-duration** instruments, interest rate risk is structurally minimized. *** ### Historical Stress Test Context Based on a historical review of the most extreme interest rate moves observed over the last 30 years: | Stress Scenario | Rate Increase | Period | | ------------------------------- | ------------: | --------- | | 2022 extreme (two-week window) | +75 bps | \~2 weeks | | 2022 extreme (one-month window) | +100 bps | \~1 month | With a maximum portfolio **average duration of 0.33 years**, even these extreme scenarios would imply a temporary collateral value decline of approximately **0.33%**, which is intended to remain within the insurance fund’s capacity. *** ### Risk Monitoring and Management Usual applies a **three-line-of-defense** framework with defined limits, monitoring, and escalation paths. #### 1) First Line of Mitigation: Duration Limits (Structural Constraints) * **Per-asset limit:** Each accepted RWA must have a duration **< 0.5 years**. * **Portfolio average limit:** The weighted average duration of the full collateral portfolio must not exceed **0.33 years** (≈ 4 months). * **Eligibility enforcement:** Any collateral that would cause the portfolio duration to exceed **0.33 years** is **ineligible** for onboarding, regardless of other characteristics. These hard constraints limit interest rate exposure before any operational monitoring is applied. *** #### 2) Second Line of Mitigation: Continuous Monitoring (Detection & Alerts) * **Ongoing duration monitoring:** Portfolio duration is computed as the **weighted average duration** of all reserve assets and monitored continuously. * **Passive deviation handling:** Deviations caused by user activity (deposits/redemptions) or market-driven changes in RWA duration are tracked. A **tolerance threshold of 0.25 years** is allowed for minor, passive fluctuations without immediate corrective action. * **Rate monitoring:** The protocol computes a **daily weighted sum of collateral rates** and maintains a **180-day rolling weighted average**. Alerts trigger when: * The rolling average moves more than **±5%** versus the prior day’s value. * The weighted average deviates by more than **±20%** from **SOFR** on any day. * **Missing data handling:** Weekend and holiday gaps are filled by carrying forward the last available business-day values to preserve continuity. *** #### 3) Third Line of Mitigation: Corrective Measures (Response Actions) If deviations exceed tolerated thresholds, corrective actions are initiated in increasing order of severity: * **Duration adjustment:** Reduce portfolio duration by selling/redeeming higher-duration RWAs and reallocating into shorter-duration instruments. * **Withdrawal restrictions:** Limit or remove an RWA from eligible collateral if its duration profile deteriorates beyond acceptable bounds. * **Insurance fund increase:** Increase the insurance fund size (subject to available capital) to absorb potential losses from rate-driven collateral value declines. *** ### Insurance Fund Protection Usual maintains a dedicated **insurance fund per Liquid Deposit Token (LDT)** to hedge against collateral losses, including those driven by interest rate movements. | Parameter | Value | | ---------------------- | ------------------------------------------------: | | **Accrual rate** | \~20% of yield (set by DAO) | | **Minimum fund cap** | 0.33% of all USD0 LDTs | | **Maximum fund cap** | 5.33% of all USD0 LDTs | | **Replenishment time** | \~24 days (at 0.33-year avg. duration, 5% coupon) | This cap range is calibrated using historical Value-at-Risk (VaR) analysis across the most extreme interest rate environments observed over the past three decades. The fund operates through the **Counter Bank Run Mechanism (CBR)**, which burns LDT tokens held in reserve to increase the salvageable redemption value per outstanding token: $$ S\_{LDT} = \min \left( \frac{\sum\_{i=1}^n P\_{Collateral\_i} \times C\_{Collateral\_i}}{Supply\_{LDT} - Insurance\_{LDT}}, F\_{LDT} \right) $$ If the salvageable redemption value falls below 1, the DAO can temporarily pause the minting engine and route activity through the secondary market to prioritize re-pegging. *** ### Multi Collateral Controller The **Multi Collateral Controller** adds another layer of interest rate risk management through dynamic portfolio optimization. It computes optimal collateral weights by maximizing a risk-adjusted objective function that explicitly penalizes duration: $$ \max \left( \lambda\_3 \sum\_{i} w\_i^\* E\[R\_i] + \lambda\_4 \sum\_{i} w\_i^\* S\_i - \lambda\_1 \sum\_{i} w\_i^\* D\_i - \lambda\_2 \sum\_{i} w\_i^\* \sigma\_i \right) $$ Where: * $D\_i$ is the duration of collateral type $i$ * $\lambda\_1$ is the duration risk-aversion coefficient This construction encourages the portfolio to rebalance toward lower-duration assets as duration risk rises, and it triggers automatically when the maximum weight deviation exceeds the threshold $\epsilon$. *** ### Future Enhancements * **Automated reallocations:** Implement automatic reallocations among collateral types to preserve optimal risk-adjusted exposure and reduce manual intervention. * **Collateral aggregator/diversifier:** Evolve toward a more advanced collateral management layer to improve duration and rate risk controls across an expanding set of RWA providers. * **Community governance:** Using USUAL governance, the community may update duration limits, insurance fund parameters, and risk thresholds as market conditions change. *** #### Note on Parameters (KB Alignment) The draft references specific thresholds and caps (e.g., duration limits, tolerances, insurance fund caps, alert thresholds). If you share the KB values, I can update this page to match them precisely while keeping GitBook-compatible markdown. # FX Risk ## Definition **FX risk** (foreign exchange risk, or currency risk) is the potential financial loss caused by fluctuations in exchange rates between currencies. For a USD-pegged stablecoin like **USD0**, any **unhedged exposure to non-USD currencies** can reduce the USD value of the collateral backing user deposits. > **Note (KB alignment):** The parameters and controls below should be periodically checked against the internal Knowledge Base (KB) to ensure they reflect the most current risk settings and operational procedures. ## Impact on Usual’s Collateral USD0 is designed to maintain a strict **1:1 peg** with the US Dollar. If the protocol’s collateral portfolio were to include **non-USD-denominated** investments, exchange-rate movements could materially change the USD value of USD0’s backing. FX fluctuations can be driven by factors such as: * Macroeconomic indicators * Geopolitical events * Interest-rate differentials * Shifts in investor sentiment Because USD0 holders expect each token to be redeemable for **exactly $1** of collateral at all times, even small FX-related losses could threaten the peg and undermine confidence. For this reason, Usual enforces an **absolute prohibition on unhedged currency exposure** across its collateral portfolio. ## Risk Policy: Zero Tolerance Usual maintains a **zero tolerance** policy for FX risk. The protocol only accepts Real World Assets (RWAs) that: * **Exclusively invest in USD-denominated assets**, or * **Are 100% FX hedged** to eliminate currency exposure This policy applies to **all collateral types** accepted by the protocol, including **Hashnote USYC**, **M by M0**, **USTBL**, and any future collateral providers onboarded through governance. By restricting collateral to **US Treasuries**, **US government securities**, **overnight repos with USD-denominated counterparties**, and **cash equivalents**, the protocol eliminates direct FX risk from the reserve portfolio by design. ## Risk Monitoring and Management Usual uses a multi-layered defense framework to maintain continuous compliance with its zero-FX-risk policy. ### First Line of Mitigation: Strict Collateral Eligibility * FX risk is addressed at onboarding: only RWAs that invest solely in USD assets or maintain **100% FX hedges** are eligible. * All collateral must pass rigorous due diligence prior to onboarding, including verification that underlying investments are **denominated solely in USD**. * This requirement is defined in the protocol’s collateral policy and enforced through the **tokenizer evaluation process**. ### Second Line of Mitigation: Asset Selection and Management Oversight * Usual selects tokenized RWA products with **strict limitations on holding non-USD-denominated assets**. Accepted tokenizers’ investment policies must explicitly restrict or prohibit non-USD holdings. * The **tokenizer’s asset management team** is responsible for day-to-day compliance with Usual’s FX constraints within fund operations. * During due diligence, Usual evaluates each tokenizer’s: * Investment policy * Custody setup * Asset management practices\ to confirm that FX exposure does not exist and cannot be introduced. ### Third Line of Mitigation: Enhanced Dual-Layer Monitoring * Beyond the tokenizer’s internal monitoring, **Usual performs regular independent reviews** of holdings within accepted RWAs. * This **dual-layer monitoring** (tokenizer oversight + Usual verification) is designed to detect and prevent deviations from the zero-FX-risk policy. * **On-chain verifiability** of collateral composition adds transparency, enabling Usual and the community to audit reserve holdings in near real time. ## Non-Compliance Management Usual maintains a defined escalation path if any deviation from the FX policy is detected. ### Initial Response to Deviations * Usual will promptly engage the tokenizer’s asset management team to: * Identify the root cause * Resolve discrepancies * Corrective actions may include immediate rebalancing of the affected portfolio back to **USD-only** assets. ### Escalation of Persistent Deviations If a deviation persists after initial corrective efforts, Usual escalates the issue through protocol governance (**the Usual DAO**) to determine the appropriate response. Potential actions include: * **Reducing exposure** to the non-compliant collateral provider by adjusting portfolio weights via the **Multi Collateral Controller** * **Removing the RWA** from the eligible collateral list * **Pausing minting** against the affected collateral until compliance is restored * **Increasing insurance fund allocations** to offset potential losses from temporary exposure ## Relationship to the Broader Risk Framework FX risk is one component of Usual’s broader financial risk policy: | Risk Type | Policy | Duration / Threshold | | ---------------------- | -------------- | -------------------------------------------------------------------- | | **FX Risk** | Zero tolerance | USD-only or 100% hedged | | **Credit Risk** | Zero tolerance | US Treasuries, quasi-government debt, or cash only | | **Interest Rate Risk** | Controlled | Portfolio average duration ≤ 0.33 years; individual RWAs < 0.5 years | | **Liquidity Risk** | Controlled | Redemption within 5 days with minimal slippage | Together, these constraints aim to keep USD0 collateral concentrated in the safest, most liquid, **USD-denominated**, short-duration instruments available—such as **US Treasury Bills** and **overnight reverse repos**—thereby eliminating FX risk by design. # Credit Risk ## Definition Credit risk is the risk of financial loss to the protocol arising from a default, delayed payment, or deterioration in the credit quality of securities held as collateral. For **USD0**, credit risk would materialize if issuers of the underlying collateral assets fail to meet their obligations—such as paying interest on time or returning principal at maturity. ## Impact on Usual’s Collateral USD0 is backed by tokenized **Real-World Assets (RWAs)**, primarily invested in short-term debt instruments such as **US Treasury Bills**, **reverse repurchase agreements**, and other highly liquid government instruments. While this is among the lowest-risk, yield-generating asset classes available, credit risk cannot be fully eliminated. Some money market funds and tokenized RWA products may invest beyond sovereign debt, including **commercial paper**, **certificates of deposit**, and other short-term securities. If any collateral provider held instruments issued by entities with weak creditworthiness or under financial stress, the fund could suffer a decline in value and potentially incur direct losses—threatening the **1:1 backing** of USD0. To mitigate this risk, Usual applies a strict credit policy that **prohibits corporate debt exposure** and restricts investments to **sovereign obligations only**. ## Collateral Eligibility Requirements Before any RWA tokenizer is accepted as USD0 collateral, it must pass rigorous due diligence. From a credit risk perspective, the key requirements are: | Criterion | Requirement | | --------------------- | ------------------------------------------------------------------------------------ | | **Asset type** | US Treasury Bills, quasi-government debt, or cash only | | **Corporate debt** | Strictly prohibited | | **Collateralization** | Must be fully collateralized with **no leverage** or **fractional reserve** exposure | | **Duration** | Portfolio duration must remain below **0.33 years** (\~4 months) | | **Liquidity** | Redeemable or sellable with minimal slippage within a maximum of **5 days** | | **Transparency** | On-chain verifiable reserves with frequent independent off-chain audits | These requirements ensure USD0 collateral is exposed only to **sovereign credit risk** (primarily the US government), which is generally considered the lowest available credit risk among yield-generating assets. ## Risk Monitoring and Management Usual uses a **three-line-of-defense** framework to monitor and mitigate credit risk across all accepted collateral. ### 1) First Line of Defense: Zero-Tolerance Policy * Usual maintains a **zero-tolerance** posture for credit risk by restricting investments exclusively to **US Treasuries, quasi-government debt, or cash**. * **Corporate debt** is **strictly prohibited** across all accepted tokenized RWA providers. * This policy is enforced at onboarding: any tokenizer with corporate debt exposure is **ineligible** as USD0 collateral. ### 2) Second Line of Defense: Asset Manager Controls * Usual only invests in tokenized RWA funds where corporate debt is explicitly prohibited at the **fund level**. * Each tokenizer’s asset manager controls serve as the primary operational safeguard. * These controls are designed to ensure compliance with Usual’s criteria and prevent unauthorized credit exposure. * Tokenizers must use **skilled, regulated asset managers** operating under strict diversification and asset selection guidelines. ### 3) Third Line of Defense: Active Monitoring by Usual * Usual independently monitors holdings within each accepted RWA tokenizer’s portfolio. * Monitoring includes **regular checks and audits** to identify deviations from the credit policy. * Both **on-chain verification** and **off-chain review** of fund reports are performed to confirm ongoing compliance. * Any discrepancies are promptly escalated to the tokenizer and its asset managers for resolution. ## Counterparty Risk Layers In addition to the credit quality of underlying securities, Usual evaluates counterparty-related risks at three levels: | Layer | Risk | Mitigation | | ----------------------- | ---------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Tokenizer risk** | Default or failure of the tokenization entity | Bankruptcy remote vehicles (BRVs), independent audits, periodic performance reviews; assets must be ring-fenced in the event of tokenizer bankruptcy | | **Fund manager risk** | Poor investment decisions or policy violations | Only regulated fund managers with proven track records; regular assessment of investment decisions and compliance | | **Bank/custodian risk** | Failure of a custodian or banking partner | Only highly rated institutions (e.g., BNY Mellon with **AA-** or higher); diversified banking relationships; contingency plans for institutional failures | The primary collateral provider, **Hashnote USYC**, illustrates these safeguards: its reverse repurchase agreements are conducted through the **Depository Trust & Clearing Corporation (DTCC)** (rated **AA-**), and custody is provided by **BNY Mellon**, one of the world’s largest and highest-rated custodians. ## Insurance Fund Protection In the unlikely event of collateral loss, Usual maintains a dedicated **insurance fund** to protect USD0 holders: * The insurance fund is funded from a portion of collateral yield (approximately **20%** accrual rate, set by the DAO). * The fund is sized to absorb potential losses, with a maximum cap ranging from **0.33% to 5.33%** of all USD0 in circulation, calibrated using historical stress tests. * In a loss event, the insurance fund **burns USD0** to increase the redeemable value per remaining token and restore the backing ratio. * With an average bond duration of **0.33 years** and a **5%** coupon rate, the fund can be fully replenished in approximately **24 days**. ## Non-Compliance Management If deviations from the credit risk policy are identified despite the mitigation framework, Usual applies the following escalation and remediation process: * **Decisive action:** If a deviation persists after initial corrective steps, Usual escalates the issue in consultation with protocol governance to determine the appropriate response. * **Potential remedies** include: * Immediately reducing exposure to the non-compliant collateral provider. * Removing the RWA tokenizer from the eligible collateral list. * Temporarily pausing minting via the non-compliant collateral type. * Activating the **Counter Bank Run Mechanism** if collateral value is impacted. This mechanism can pause the minting engine and route activity to the secondary market while remediation is underway. * All remediation actions are subject to **DAO governance**, ensuring transparency and community oversight. ## Historical Context Usual’s zero-tolerance policy is informed by real-world precedent. During the **March 2023 Silicon Valley Bank (SVB) crisis**, Circle had approximately **8%** of USDC reserves exposed to SVB, and USDC traded at an average of approximately **$0.95** (a \~5% deviation from parity). Usual’s policy is designed to eliminate comparable exposure by requiring collateral invested exclusively in **sovereign bonds** and prohibiting exposure to **commercial bank deposits**, reducing the likelihood that USD0 could be affected by a similar event. *** ## Note on KB Updates (Action Required) This draft references updating “risk parameters, collateral requirements, and safety mechanisms from the KB.” No KB content was provided in this request, so the values and mechanisms above have been preserved as-is. If you share the relevant KB excerpts, I can align the document precisely while maintaining technical accuracy. # Insurance Fund ## Rationale The value of the collateral reserves backing **USD0** can fluctuate with changes in interest rates. US Treasury Bills and government securities are generally considered risk-free assets and are typically repaid at par at maturity. However, when interest rates rise, the **mark-to-market** value of these instruments can temporarily decline, creating a short window of **undercollateralization** before the bonds mature. Over time, this temporary gap is naturally offset by the **daily interest income** accrued on the underlying collateral. In the unlikely event of a **mass redemption** scenario—where many users redeem USD0 simultaneously—combined with a temporary dip in collateral value caused by market movements, it may not be possible to redeem **1 USD0 for exactly $1** worth of collateral at that moment. To mitigate this tail risk, Usual implements several protective measures: * **Short-duration collateral**: As defined in the [risk policy](https://github.com/Pi-2lavega/usual-gitbook-sync/blob/main/resources-and-ecosystem/risk-policy/financial-risk/README.md), all collateral must maintain a **portfolio average duration below 0.33 years** (\~4 months), with **individual RWAs capped at 0.5 years**. This materially limits exposure to interest-rate fluctuations. * **Zero tolerance for credit and FX risk**: Only **US Treasuries**, **quasi-government debt**, or **cash** are accepted—no corporate debt and no unhedged foreign-currency exposure. * **Segregated insurance fund**: A dedicated on-chain fund designed to absorb potential undercollateralization events, acting as a buffer to protect USD0’s **1:1 peg**. > Note: If any risk parameters, collateral requirements, or safety mechanisms have been updated in the knowledge base (KB), reflect those latest values here. *** ## Calculation and insurance fund calibration To ensure robustness against severe financial shocks, Usual conducted stress tests simulating extreme interest-rate increases exceeding anything recorded in the last 30 years. Historically, the most significant short-term increases in 6-month yields were: * **+75 bps** over a two-week period (observed in 2022) * **+100 bps** over a one-month period (observed in 2022) Given a maximum portfolio average duration of **0.33 years**, a recurrence of these historical extremes could temporarily reduce collateral value by approximately **0.33%**. This impact primarily affects mark-to-market valuation for a few months, until the bonds mature at par. *** ## Salvageable redemption value The insurance fund operates through the **Counter Bank Run Mechanism (CBR)**. Under the CBR, the protocol can increase the per-token backing ratio by **burning USD0 held in the insurance fund**, thereby reducing circulating supply relative to the collateral value. The **salvageable redemption value** is calculated as: $$ S\_{LDT} = \min \left( \frac{\sum\_{i=1}^n P\_{Collateral\_i} \times C\_{Collateral\_i}}{Supply\_{LDT} - Insurance\_{LDT}}, F\_{LDT} \right) $$ Where: | Variable | Description | | ---------------------------------------------- | ------------------------------------------------ | | $P\_{Collateral\_i} \times C\_{Collateral\_i}$ | Total value of collateral type $i$ | | $Supply\_{LDT}$ | Floating supply of USD0 | | $Insurance\_{LDT}$ | USD0 set aside by the DAO for the insurance fund | | $F\_{LDT}$ | Intended fair price of USD0 (i.e., $1.00) | By burning USD0 from the insurance fund (i.e., reducing the denominator), the protocol increases the redemption value per remaining USD0 in circulation, supporting restoration of the peg. *** ## Insurance fund sizing The DAO sets a maximum insurance fund cap based on historical **Value-at-Risk (VAR)** analysis. The cap ranges from **0.33% to 5.33%** of all USD0 in circulation: | Scenario | Cap range | Basis | | ----------------------------------- | ----------- | --------------------------------------------------------------------------------------------------------------------------- | | Interest-rate shock only | \~0.33% | Worst-case +100 bps move with 0.33-year duration | | Combined with counterparty exposure | Up to 5.33% | Includes SVB-type events (referencing the \~5% USDC depeg in March 2023 when Circle had 8% exposure to Silicon Valley Bank) | *** ## Setting and maintaining the insurance fund The insurance fund is sized to cover **tail-risk** events. Operationally, the goal is to maintain the fund **above** the calculated minimum requirement. ### Funding source The insurance fund is funded using a portion of the yield generated by USD0’s underlying collateral. The DAO sets an **insurance accrual rate**—approximately **20%** of collateral yield—which is directed into the fund on an ongoing basis. ### Replenishment speed Protocol revenue is allocated to replenish the insurance fund. **Example:** With an average bond duration of **0.33 years** and a coupon rate of **5%**, it would take approximately **24 days** to replenish the insurance fund to cover potential losses from a worst-case interest-rate shock. ### Emergency measures If the salvageable redemption value falls below 1, the DAO can take additional defensive actions: 1. **Temporarily pause the minting engine** to focus on re-pegging USD0 using existing supply. 2. **Route minting activity through the secondary market only** (no new collateral accepted until the peg is restored). 3. **Deploy the insurance fund** to burn USD0 and restore the per-token backing ratio. *** ## Monitoring the insurance fund To ensure adequate coverage, the insurance fund size is periodically computed, taking into account the duration of underlying risk-weighted assets and current market conditions. Key monitoring parameters include: * **Portfolio duration**: Continuously tracked to ensure the weighted average remains below **0.33 years**, with a **0.25-year tolerance** for minor fluctuations. * **Interest-rate monitoring**: A **180-day rolling weighted average** of collateral rates is maintained. Alerts trigger when the rolling average deviates: * more than **±5%** from the previous day, or * more than **±20%** from the **SOFR** benchmark. * **Fund adequacy**: Regular comparison of the insurance fund balance against the VAR-derived minimum requirement. Funding and top-ups are facilitated via a smart contract, allowing the DAO to manage the flow of USD0 from DAO reserves if existing funds are insufficient. This on-chain mechanism ensures transparency: anyone can verify the current size and adequacy of the insurance fund at any time. # Third Party Risk ### Third-Party Risk Usual Protocol’s collateral framework relies on external tokenizers, fund managers, custodians, and other service providers to bridge real-world assets (RWAs) onto the blockchain. As a result, third-party risk management is a core pillar of the protocol’s overall risk policy. This page covers the primary dimensions of third-party risk—**tokenizer risk** and **operational risk**—and the associated mitigation frameworks, quantitative collateral requirements, and safety mechanisms designed to protect **USD0** holders. > Note (documentation): The draft requests updates “from the KB,” but no KB content was provided here. The parameters and mechanisms below are preserved as-is from the draft. *** ## A. Tokenizer Risk At Usual, collateral is deployed through **tokenizers**—platforms that convert RWAs (primarily **US Treasury Bills** and **repurchase agreements**) into on-chain tokens. Before any tokenizer is accepted as a collateral provider for USD0, it undergoes a rigorous due diligence process. The following criteria must be met: * **Security**: Only experienced tokenizers with thoroughly audited technology are selected, reducing smart contract exploit risk. * **Regulatory compliance**: Tokenizers must operate in full compliance with applicable regulations (e.g., **CIMA licensing**, **CFTC registration**), supporting legal integrity and operational safety. * **Asset management**: Underlying assets must be managed by skilled, compliant asset managers operating under strict guidelines designed to diversify exposure and minimize counterparty, investment, and operational risks. * **Transparency**: Full transparency of underlying assets is required, audited by independent third parties. Collateral must be verifiable on-chain and also provide high off-chain transparency through frequent public financial audits. * **Asset protection**: Assets must be ring-fenced in the event of the tokenizer’s bankruptcy via **bankruptcy-remote vehicles (BRVs)**. * **Fee structure**: Tokenizer fees must be reasonable and should not materially erode returns from the underlying assets. * **Redemption processes**: Tokenizers must offer prompt, straightforward redemptions. Only RWAs that can be redeemed or sold with minimal slippage within **5 days** are eligible. * **Diversification of exposure**: The protocol maintains diversification across multiple tokenizers and asset types to reduce single-point-of-failure risk. *** ### Tokenizer Evaluation Dimensions Each tokenizer candidate is evaluated across five areas: | Area | Key factors | | ---------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ | | **Structuring & Regulation** | Issuing entity, jurisdiction, regulatory framework, bankruptcy-remote structuration | | **Product Description** | Issuance/redemption timelines, accepted currencies, token characteristics (accumulative vs. distributive), compatible blockchains, fee structure | | **Asset & Management** | TVL, token structuring, custody setup, investment policy details | | **Risk Policy** | Technical and smart contract audits, conflicts of interest, derivatives usage, counterparty risk, recovery procedures | | **Security Requirements** | Audit history, regulatory compliance, ring-fenced assets, reasonable fees, prompt redemption | *** ### Counterparty Risk Layers Third-party counterparty risk is assessed across three layers: | Layer | Risk | Mitigation | | -------------------- | --------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | | **Tokenizer** | Platform failure, smart contract exploit, bankruptcy | BRVs, independent audits, periodic performance reviews, diversification across multiple tokenizers | | **Fund Manager** | Poor investment decisions, regulatory violations, operational failure | Regulated fund managers with proven track records; regular assessment of decisions and compliance history | | **Bank / Custodian** | Institutional failure (e.g., SVB, Lehman Brothers) | Highly rated institutions (e.g., BNY Mellon with **AA- via DTCC**); diversified banking relationships; contingency plans | > **Historical context**: The protocol’s risk policy explicitly references the Circle/SVB event (March 2023), where Circle had 8% of its collateral exposed to Silicon Valley Bank, contributing to an average depeg of \~$0.95 (a 5% deviation). Usual’s collateral requirements are designed to reduce similar exposure by requiring investments exclusively in **sovereign bonds** rather than commercial bank deposits. *** ## Collateral Eligibility Requirements All collateral accepted into the protocol must satisfy the four core requirements defined in the litepaper: | Requirement | Standard | | ------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | **Fully collateralized** | 100% collateralized with no leverage. Fractional reserve risk (as in traditional banking) and any form of leverage that could lead to collateral loss are explicitly excluded. | | **Low risk** | Invested exclusively in liquid **US Treasury Bills**—the lowest-risk yield-generating asset class. **Sovereign bonds only**; **corporate debt is strictly prohibited**. | | **Transparent** | Verifiable on-chain in real time, with frequent off-chain public financial audits. No reliance on periodic attestations. | | **Liquid** | Portfolio duration must remain below **0.33 years** (\~4 months). Collateral with duration above this threshold is ineligible. Must be redeemable within **5 days** with minimal slippage. | *** ### Financial Risk Parameters Usual enforces quantitative limits across four financial risk categories. #### Interest Rate Risk | Defense line | Parameter | | ------------ | ------------------------------------------------------------------------------------------------------------------------------------ | | **First** | Individual RWA duration < **0.5 years**; portfolio average duration ≤ **0.33 years** | | **Second** | Continuous monitoring with a tolerance threshold of **0.25 years** for passive deviations | | **Third** | Corrective measures: duration adjustment (selling/redeeming higher-duration RWAs), withdrawal restrictions, insurance fund increases | #### FX Risk * **Zero tolerance**: only USD-denominated assets (or positions that are **100% FX-hedged**) are accepted. * Dual-layer monitoring: both the tokenizer team and Usual independently review holdings for compliance. #### Credit Risk * **Zero tolerance**: investments are restricted exclusively to **US Treasuries**, **quasi-government debt**, or **cash**. * **Corporate debt is strictly prohibited.** * Active monitoring includes regular checks and audits to detect deviations. #### Liquidity Risk * Only RWAs redeemable or sellable with minimal slippage within **5 days** are eligible. * The portfolio is diversified across RWA types to reduce concentration in any asset class that could become illiquid. *** ## B. Operational Risk ### Definition Usual and its tokenizer partners may face the following operational risk categories: 1. **Internal fraud**: Misappropriation of funds, unauthorized trading, insider trading, or other fraudulent acts by employees or insiders. 2. **External fraud**: Cyberattacks, identity theft, or unauthorized access to sensitive information, potentially leading to financial loss, reputational damage, or regulatory non-compliance. 3. **Business disruption**: Disruptions from natural disasters, technology failures, or operational errors that interrupt services and can cause losses. 4. **Compliance and legal risks**: Failure to comply with laws, regulations, or industry standards, potentially resulting in penalties, legal actions, reputational harm, or loss of licenses. 5. **Data and information security**: Risk of data breaches, unauthorized access, or data loss, given the sensitivity and volume of information handled. 6. **Operational errors**: Human error, system failures, or process deficiencies leading to losses, incorrect reporting, failed trades, or inaccurate valuations. ### Mitigation Usual expects tokenizers to implement comprehensive controls, including internal controls, risk management frameworks, employee training, disaster recovery, cybersecurity protocols, and compliance monitoring. Regular risk assessments and audits are used to identify and mitigate operational risks proactively. Usual performs a qualitative assessment of approved tokenizers across the following dimensions: 1. **Governance and organizational structure**: Clear responsibilities, defined roles, and a governance framework that supports accountability and transparency. 2. **Risk management policies and procedures**: Documented operational risk framework covering identification, assessment, mitigation, and monitoring. 3. **Compliance and regulatory track record**: Review of compliance history, including any violations or disciplinary actions. 4. **Operational controls and processes**: Segregation of duties, checks and balances, technology infrastructure review, data security controls, and disaster recovery capabilities. 5. **Talent and expertise**: Qualifications and experience of the operational risk management team. 6. **Reporting and transparency**: Regular reporting on operational risk metrics, incidents, and mitigations; clear investor communications. 7. **Third-party service providers**: How custodians, administrators, and vendors are selected, monitored, and governed through due diligence and ongoing oversight. 8. **Continuity planning**: Business continuity and disaster recovery measures to support uninterrupted operations during disruptions. *** ## Safety Mechanisms ### Multi Collateral Controller The protocol uses a Multi Collateral Controller to dynamically manage the collateral portfolio backing USD0 through a two-layer approach: **Layer 1 — Continuous adjustment**\ Collateral provider reward rates ($\xi\_i$) are dynamically adjusted based on the deviation between actual weights ($w\_i$) and optimal weights ($w\_i^\*$). Underrepresented collateral types receive higher rewards, while overrepresented types receive lower rewards. **Layer 2 — Triggered rebalancing**\ Portfolio rebalancing is triggered when the maximum deviation exceeds a predefined threshold: $$\text{Trigger Condition:} \quad \max\_{i} |w\_i - w\_i^\*| > \epsilon$$ Optimal weights are computed by maximizing a risk-adjusted objective function that considers duration, volatility, scoring, and expected returns for each collateral type. *** ### Insurance Fund The protocol maintains a per-LDT insurance fund intended to hedge against collateral value loss: | Parameter | Value | | ---------------------- | ------------------------------------------------------------ | | **Accrual rate** | \~20% of yield (set by DAO) | | **Maximum cap** | 0.33% to 5.33% of all USD0, based on historical VAR analysis | | **Replenishment time** | \~24 days (at 0.33-year avg. duration and 5% coupon rate) | In the event of collateral loss, the insurance fund burns USD0 to increase the salvageable redemption value per token. If the salvageable redemption value falls below $1.00, the DAO can temporarily pause the minting engine and route activity through the secondary market to prioritize re-pegging. *** ### Counter Bank Run Mechanism (CBR) The CBR adjusts the salvageable redemption value $S\_{LDT}$ based on total collateral value and insurance reserves: $$S\_{LDT} = \min \left( \frac{\sum\_{i=1}^n P\_{Collateral\_i} \times C\_{Collateral\_i}}{Supply\_{LDT} - Insurance\_{LDT}}, F\_{LDT} \right)$$ Historical stress tests simulated extreme interest rate scenarios exceeding any recorded in the last 30 years (75 bps rise over two weeks, 100 bps over one month). With a maximum portfolio average duration of 0.33 years, these extremes could temporarily reduce collateral value by approximately **0.33%**, which is within the insurance fund’s coverage capacity. *** ## Current Collateral Providers | Provider | Asset | Key Infrastructure | Regulatory Status | | ---------------------- | ---------------------------------- | ----------------------------------------------------------------- | ------------------------------ | | **Hashnote** (primary) | USYC — reverse repos & US T-Bills | Custody: BNY Mellon · Prime Broker: Marex · Auditor: Cohen and Co | CIMA Licensed, CFTC Registered | | **M0 Foundation** | M — tokenized money market | — | — | | **Superstate** | USTBL — US Treasury Bills | — | SEC-regulated | | **Circle** | USDC — indirect minting collateral | — | — | The community governs which collateral types are accepted through **USUAL** token governance. Governance includes voting on new collateral additions, setting exposure limits per provider, adjusting risk parameters, and removing underperforming or risky collateral. *** # Counterparty Risk Counterparty risk is a core dimension of Usual Protocol’s risk management framework. Because **USD0** is backed by tokenized **Real-World Assets (RWAs)** held through external providers, the integrity, operational resilience, and solvency of each entity in the collateral chain directly affect the safety of the stablecoin and its holders. *** ## Definition **Counterparty risk** is the possibility that a counterparty (e.g., a financial institution, service provider, or other entity) fails to meet its contractual obligations, defaults on its commitments, or becomes insolvent. In Usual Protocol, key counterparties form a **three-layer chain**: * **Tokenizer** — creates and manages the on-chain token representation of the underlying RWA (e.g., **Hashnote** for **USYC**, **Superstate** for **USTBL**). * **Fund manager** — manages the underlying investment portfolio (e.g., US Treasury Bills, reverse repos, government securities). This may be the tokenizer itself or a dependent party. * **Banks and custodians** — hold, settle, safeguard, and clear the underlying assets (e.g., **BNY Mellon** for Hashnote custody, **DTCC** for clearing). *** ## Impact on Usual’s Collateral USD0 collateral can be impaired if any counterparty in the RWA chain fails. The impact depends on where the failure occurs: * **Tokenizer failure**\ May prevent or delay minting, redemption, or liquidation of the tokenized RWA. If the tokenizer’s operations or technology are compromised, access to collateral can be disrupted. * **Fund manager default or insolvency**\ Can lead to portfolio losses that reduce the value of the collateral pool. Poor investment decisions, unauthorized leverage, or fraud could erode the assets backing USD0. * **Banking or custodial failure**\ Can restrict access to funds or lead to direct losses during liquidity crises or insolvencies—historically illustrated by **Lehman Brothers (2008)** and **Silicon Valley Bank (2023)**. The SVB event caused Circle’s USDC to depeg to approximately **$0.95** due to **8%** of reserves being held at the failed bank. Usual’s risk policy is explicitly designed to avoid such exposure. *** ## Collateral Eligibility Requirements Before any counterparty is accepted into Usual’s collateral system, it must pass a rigorous due diligence process. The protocol enforces strict eligibility criteria across **all three layers** (tokenizer, fund manager, and banking/custody): | Requirement | Standard | | -------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- | | **Full collateralization** | **100% collateralized** — no leverage, no fractional reserves. Excludes any exposure to fractional reserve banking or leveraged positions. | | **Asset quality** | Investments restricted exclusively to **US Treasuries**, quasi-government debt, reverse repos, or cash. **Corporate debt is strictly prohibited.** | | **Duration limit** | Individual RWA duration must be **< 0.5 years**; portfolio average duration must not exceed **0.33 years** (\~4 months). | | **FX risk** | **Zero tolerance** — only USD-denominated assets or positions that are **100% FX-hedged**. | | **Credit risk** | **Zero tolerance** — no corporate credit exposure permitted under any circumstances. | | **Liquidity** | RWAs must be redeemable or sellable with minimal slippage within a maximum of **5 days**. | | **Transparency** | Collateral must be verifiable on-chain in real time and provide high transparency off-chain through frequent public financial audits. | | **Regulatory compliance** | Tokenizers must be fully licensed and regulated under appropriate financial authorities (e.g., **CIMA**, **CFTC**). | | **Asset protection** | Assets must be ring-fenced in a **bankruptcy remote vehicle (BRV)** in the event of the tokenizer’s insolvency. | *** ## Risk Monitoring and Management Usual applies a comprehensive, multi-layered approach to counterparty risk using a **three-line-of-mitigation** model. Each line defines (1) criteria, (2) monitoring, and (3) contingency actions across each counterparty layer. ### First Line of Mitigation: Clear Counterparty Criteria * **Tokenizer** * Must operate via **bankruptcy remote vehicles (BRVs)**. * Must demonstrate robust operations and financial stability, verified through independent audits. * Must undergo thorough technology audits (smart contract audits and operational security audits). * Only experienced tokenizers with proven track records are eligible. * **Fund manager** * Must have a demonstrated track record managing Treasury and sovereign debt portfolios. * Must be regulated under appropriate financial authorities. * Must follow strict guidelines that prohibit leverage, corporate debt, and FX-unhedged positions. * Must maintain skilled and compliant asset management teams. * **Banks and custodians** * Must be **highly rated** institutions demonstrating strong risk management, compliance, and capital adequacy (e.g., **BNY Mellon** for institutional-grade custody; **DTCC** with an **AA-** credit rating). * Must maintain **diversified banking relationships** to reduce concentration risk at any single institution. ### Second Line of Mitigation: Ongoing Monitoring and Compliance Checks * **Tokenizer** * Periodic audits, security reviews, and performance assessments to ensure continued compliance with technical, regulatory, and operational requirements. * Dual-layer monitoring: both the tokenizer and Usual independently monitor holdings for compliance with the risk policy. * **Fund manager** * Regular review of investment decisions, risk exposure, duration profiles, and portfolio composition to ensure alignment with Usual’s risk appetite. * The protocol monitors the **weighted average duration** of reserve assets, with: * a tolerance threshold of **0.25 years** for minor fluctuations; and * alerts triggered when the **rolling 180-day weighted average** deviates more than **±5%** from the previous day or more than **±20%** from the **SOFR** benchmark. * **Banks and custodians** * Continuous monitoring of partner health and stability, including credit ratings, risk exposure, regulatory standing, and liquidity position. * Any deterioration triggers escalation procedures. ### Third Line of Mitigation: Contingency Plans and Corrective Actions * **Tokenizer** * Pre-defined contingency plans for tokenizer failure, including alternative redemption paths, collateral liquidation, and migration to backup collateral providers. * The DAO can remove underperforming or at-risk collateral types via governance vote. * **Fund manager** * Mechanisms to switch fund management services quickly to minimize disruption. * Recovery procedures and asset-transfer protocols are documented and tested. * **Banks and custodians** * Custody and banking are **diversified across multiple institutions** to mitigate single-institution failure risk. * Contingency plans include rapid asset reallocation and alternative settlement arrangements. * Historical failures (Lehman Brothers, Silicon Valley Bank) are explicitly treated as scenarios the risk policy is designed to withstand. *** ## Insurance Fund Protection To further mitigate counterparty-related collateral losses, Usual maintains a dedicated **insurance fund** per **Liquid Deposit Token (LDT)**: | Parameter | Value | | ---------------------- | ------------------------------------------------------------------------------------------------------ | | **Funding source** | A portion of yield generated by the LDT (insurance accrual rate set by the DAO, approximately **20%**) | | **Maximum cap** | Between **0.33% and 5.33%** of all USD0 LDTs, determined by historical stress testing (VAR analysis) | | **Replenishment time** | Approximately **24 days** (at **0.33-year** average duration and **5%** coupon rate) | | **Mechanism** | Burns LDT held in the insurance fund to increase the salvageable redemption value per LDT | The insurance fund cap is calibrated against extreme historical scenarios, including: * A **75 bps** interest rate rise over a two-week period (observed in 2022) * A **100 bps** increase over a one-month period (observed in 2022) * SVB-type counterparty exposure resulting in up to a **5% depeg** (as experienced by USDC in March 2023) Given the portfolio’s maximum average duration of **0.33 years**, even these extreme scenarios would temporarily reduce collateral value by approximately **0.33%**. ### Counter Bank Run Mechanism (CBR) The **Counter Bank Run Mechanism (CBR)** adjusts the salvageable redemption value using the insurance fund: $$ S\_{LDT} = \min \left( \frac{\sum\_{i=1}^n P\_{Collateral\_i} \times C\_{Collateral\_i}}{Supply\_{LDT} - Insurance\_{LDT}},\ F\_{LDT} \right) $$ If the salvageable redemption value falls below 1, the DAO can temporarily pause the minting engine and direct minting through the secondary market to focus on re-pegging. *** ## Collateral Diversification as Risk Mitigation Counterparty risk is further reduced through **multi-provider collateral diversification**. USD0 is backed by assets from multiple tokenizers, custodians, and service providers, reducing single points of failure: | Collateral | Tokenizer | Key Custodian / Counterparty | | ---------- | ------------- | ---------------------------------------------------------------------- | | **USYC** | Hashnote | BNY Mellon (custody), DTCC (clearing, AA- rated), Marex (prime broker) | | **M** | M0 Foundation | Independent custody and administration | | **USTBL** | Superstate | SEC-regulated, US Treasury Bills | | **USDC** | Circle | Indirect minting collateral via Collateral Providers | The **Multi Collateral Controller** dynamically manages portfolio composition across providers by: * continuously adjusting reward rates to incentivize balanced collateral contributions; and * triggering rebalancing when the maximum deviation between actual and optimal portfolio weights exceeds a predefined threshold. *** ## Community Governance of Counterparty Exposure Counterparty and collateral exposure is governed by the community through **USUAL token governance**. Holders can vote on: * Adding or removing collateral types and their associated counterparties * Setting maximum exposure limits per collateral provider * Adjusting risk parameters based on evolving market conditions * Responding to counterparty deterioration or emerging risks This governance layer keeps counterparty-risk decisions transparent, community-driven, and responsive to changing conditions rather than controlled by a single corporate entity. *** # Liquidity Risk ### Definition Liquidity risk is the risk that assets cannot be converted into cash quickly and at a reasonable price. It becomes acute when the protocol cannot meet investor redemption requests promptly without incurring material losses—especially when assets are illiquid or difficult to sell. ### Impact on USD0 Collateral For Usual, liquidity risk directly affects the protocol’s ability to honor redemptions from **USD0 holders**, who are entitled to redeem their stablecoins for **$1 of collateral per USD0**. USD0 is backed by tokenized **Real World Assets (RWAs)**—primarily **US Treasury Bills** and **overnight reverse repurchase agreements**—that holders can select for redemption. Because these assets are **not locked or staked in other protocols**, they should, in principle, be readily available for liquidation. However, liquidity constraints can still arise if a specific RWA becomes harder to sell or redeem. In such cases, Usual may need to: * sell the asset on the secondary market, or * redeem the asset directly through the tokenizer, which requires reliable, fast, and operationally robust execution paths. ### Collateral Eligibility: Liquidity Requirements To reduce liquidity risk at the source, Usual applies strict eligibility criteria to all accepted collateral: * **Maximum duration** * The overall collateral portfolio must maintain a duration below **0.33 years** (\~4 months). * Individual RWAs must have a duration below **0.5 years**. * Collateral exceeding these thresholds is ineligible. * **Maximum redemption window** * Only RWAs that can be redeemed or sold with minimal slippage within **5 days** are accepted. * **Full collateralization** * Collateral must be fully collateralized, with **no leverage** and **no fractional-reserve structures**, avoiding liquidity amplification mechanisms typical in traditional banking. * **Asset-type restrictions** * Investments are restricted exclusively to **US Treasuries**, **quasi-government debt**, or **cash**—the most liquid instruments in traditional finance. * **Corporate debt is strictly prohibited.** *** ### Risk Monitoring and Management Usual uses a **three-line-of-defense** framework to manage liquidity risk. #### First Line of Defense (Prevention at Onboarding) * **Initial selection criteria** * Only RWAs with inherently high liquidity are considered, and they must be redeemable or sellable with minimal slippage within **5 days**. This helps ensure USD0 collateral can be converted into cash quickly when needed. * **Tokenizer due diligence** * Each RWA tokenizer undergoes a rigorous evaluation before approval, including: * redemption speed and process reliability, * settlement infrastructure (e.g., **T+0 to T+1 settlement into USDC or PYUSD** for the primary provider **Hashnote USYC**), * operational track record. * Redemption processes must be prompt and straightforward. * **Zero FX risk policy** * Only **USD-denominated** assets are eligible, unless the position is **100% FX-hedged**, preventing currency conversion delays from compounding liquidity constraints. #### Second Line of Defense (Portfolio Construction and Controls) * **Liquidity diversification** * The portfolio is diversified across multiple RWA types and multiple tokenizer platforms to reduce reliance on any single market segment or redemption rail. * Current collateral providers include **Hashnote (USYC)**, **M0 Foundation (M)**, **Superstate (USTBL)**, and others—each with independent custody and redemption infrastructure. * **Multi Collateral Controller** * The protocol uses a dynamic **Multi Collateral Controller** that continuously adjusts collateral-provider reward rates when allocations deviate from target (optimal) portfolio weights. * This incentivizes balanced contributions and reduces concentration risk. * Rebalancing is triggered when the **maximum deviation** between current and optimal weights exceeds a predefined threshold **ε**. * **Counterparty diversification** * Different custodians (e.g., **BNY Mellon for Hashnote**), prime brokers, and service providers support each collateral type, reducing single-point-of-failure exposure. #### Third Line of Defense (Ongoing Monitoring and Crisis Tools) * **Continuous liquidity monitoring** * Liquidity conditions are monitored continuously and holdings may be adjusted as market conditions evolve. * Interest rates are tracked via a **daily weighted sum** with a **180-day rolling average**. * Alerts trigger if rates deviate more than: * **±5%** from the prior day, or * **±20%** from the **SOFR** benchmark. * **Insurance fund** * The DAO maintains an insurance fund funded from approximately **20% of the yield** generated by USD0 collateral. * The fund is sized between **0.33% and 5.33%** of all USD0 in circulation, based on historical stress tests simulating extreme interest-rate increases beyond any recorded in the last **30 years**. * With an average bond duration of **0.33 years** and a **5% coupon rate**, the insurance fund can be replenished in approximately **24 days**. * **Counter Bank Run Mechanism (CBR)** * In a severe liquidity crisis, the insurance fund can **burn USD0** to increase the **salvageable redemption value per token**. * If the salvageable value falls below **$1**, the DAO can temporarily **pause the minting engine** to prioritize re-pegging USD0 by directing all minting activity through the **secondary market**. * This mitigates “death spiral” dynamics where new minting dilutes already-stressed collateral backing. * **Corrective measures** * If portfolio liquidity deteriorates beyond acceptable thresholds, the protocol can take corrective actions including: * duration reductions (selling or redeeming higher-duration RWAs), * temporary withdrawal restrictions, and * increased allocations to the insurance fund to rebuild liquidity buffers. *** > **Note:** The draft references updating parameters “from the KB.” No KB content was provided in this request, so all parameters and mechanisms above are preserved as written. # Usual Backers Since its inception in June 2022, Usual has been backed by **200+ investors**. Across two funding rounds, the protocol has raised a total of **$17 million**, bringing together leading venture capital firms, crypto-native funds, and strategic industry partners. ## Funding Rounds ### Seed Round — April 2024 | Detail | Value | | ----------------- | ------------------------------------------------------------------ | | **Amount Raised** | $7 million | | **Key Investors** | IOSG Ventures, Kraken Ventures, GSR, Mantle, StarkWare, and others | This seed round established Usual’s foundational investor base, adding partners with deep expertise across DeFi infrastructure, market making, and Layer 2 scaling. ### Series A — December 2024 | Detail | Value | | ------------------ | ---------------------------------------- | | **Amount Raised** | $10 million | | **Lead Investors** | Binance Labs, Kraken Ventures | | **Participants** | Galaxy Digital, OKX Ventures, and others | The Series A was led by two of the largest exchange-affiliated venture arms in the industry, reflecting strong institutional conviction in Usual’s long-term vision. The round closed shortly after the **USUAL** token launched on **Binance Launchpool** in November 2024. ## Strategic Investor Alignment Usual’s investor base reflects the protocol’s positioning at the intersection of traditional finance and DeFi: * **Exchange ecosystems** — Binance Labs, Kraken Ventures, and OKX Ventures support distribution, liquidity, and market access across some of the world’s largest trading platforms. * **DeFi-native funds** — IOSG Ventures, GSR, and Galaxy Digital bring deep experience in on-chain protocols, tokenomics design, and market-making infrastructure. * **Infrastructure partners** — Mantle and StarkWare contribute Layer 2 scaling and multi-chain deployment expertise, supporting Usual’s cross-chain ambitions across **Ethereum, Arbitrum, Base, and BNB Chain**. ## Insider Token Allocation In line with Usual’s community-first ethos, insiders (team, investors, and advisors) were originally allocated 10% of all USUAL token emissions via the USUAL STAR ($USUAL\*) token. Following UIP-11 and UIP-13, USUAL STAR became a non-transferable (soulbound), illiquid token; in return, insiders were compensated at a conversion rate of 0.97 USUAL per $USUAL\*. The Usual model diverges significantly from traditional stablecoin models, where 100% of revenues typically accrue to the issuing company and its shareholders. ### Vesting Structure Insider tokens follow a structured vesting schedule designed to ensure long-term alignment: * **Cliff period:** 1 year from the Token Generation Event (TGE) — **November 25, 2024** * **Cliff release:** **33.33%** of the insider allocation unlocks at the end of the cliff * **Linear vesting:** The remaining \~**67%** vests **monthly** after the cliff, continuing through **June 2028** * **Full vesting completion:** **June 2028**, coinciding with the **bUSD0 bond** maturity ### November 2025 Restructuring Following governance proposals in November 2025, the insider allocation model was simplified: * The separate **USUAL\*** insider token was retired and converted into liquid **USUAL** at a **0.97:1** ratio. * The total supply cap was reduced from **4 billion** to **3 billion USUAL**, mechanically increasing the insider share to approximately **30.25%** of the new supply (\~**910.8 million USUAL**). * The conversion was funded entirely from the **Foundation** bucket — **no new tokens were minted**. * Monthly vesting continues through **June 2028**. This restructuring aligned Usual’s insider allocation with common DeFi benchmarks (\~30%) while simplifying tokenomics to a single, liquid token for all stakeholders. # Media Assets Use this page to access the complete collection of official Usual Protocol brand assets—logos, token icons, and visual resources—for publications, integrations, partnerships, and community content. ## Brand Kit All official Usual media assets are available on the dedicated brand kit page: {% embed url="" %} ## What's Included The Usual brand kit includes assets for the full product suite: | Asset Category | Description | | ------------------ | ---------------------------------------------------------- | | **Usual Protocol** | Primary protocol logos, wordmarks, and icon variants | | **USD0** | Stablecoin (Liquid Deposit Token) branding and token icons | | **bUSD0** | Liquid Bond Token branding (formerly **USD0++**) | | **USUAL** | Governance token logos and icons | | **USUALx** | Staked **USUAL** token branding | | **sUSD0** | Savings **USD0** product branding | | **EUR0** | Euro-denominated stablecoin branding | | **ETH0** | ETH-denominated product branding | ## Usage Guidelines When using Usual Protocol media assets, follow these guidelines: * **Do not modify** logos, colors, or proportions (except for standard, proportional scaling). * **Maintain clear space** around logos and marks—avoid crowding with other visual elements. * **Use official assets only**—do not recreate, redraw, or approximate Usual logos or token icons. * **Use the correct product names** in publications and integrations: * **USD0** (not “USD Zero” or “USd0”) * **bUSD0** (current name for the liquid bond token; formerly **USD0++**) * **USUAL** (governance token; all caps) * **USUALx** (staked **USUAL**; capital **X**) ## Key Product Names Reference For accuracy in media and content, use the following naming conventions: | Product | Correct Name | Former Name | Type | | ---------------- | ------------ | ----------- | ---------------------------------------- | | Stablecoin | **USD0** | — | Liquid Deposit Token (LDT) | | Liquid Bond | **bUSD0** | **USD0++** | Liquid Bond Token (LBT) | | Early-Exit Right | **rt-bUSD0** | — | Recombination token | | Governance Token | **USUAL** | — | Revenue-backed governance token | | Staked Token | **USUALx** | — | Staked **USUAL** | | Savings Product | **sUSD0** | — | Wrapped yield-bearing **USD0** | | Euro Stablecoin | **EUR0** | — | Euro-denominated LDT (in development) | | ETH Product | **ETH0** | — | ETH-denominated product (in development) | > **Note:** The rebrand from **USD0++** to **bUSD0** was implemented under governance proposal **UIP-12**. Update legacy **USD0++** references to **bUSD0** in all new content. ## Contact For media inquiries, partnership requests, or custom asset needs, reach out through official Usual community channels: * **Website**: [usual.money](https://usual.money) * **Documentation**: [docs.usual.money](https://docs.usual.money) * **Twitter/X**: [@UsualMoney](https://x.com/UsualMoney) * **Discord**: [Usual Protocol Discord](https://discord.gg/usual) *** ## Additional Instructions Rewrite and improve this GitBook page using the full Knowledge Base. Keep the same structure and language (English). Add missing information, fix inaccuracies, improve clarity. Keep GitBook-compatible markdown (no frontmatter). *** # Factsheets Institutional-grade product factsheets for Usual Protocol. Each factsheet provides a comprehensive overview including executive summary, key facts, fees, smart contract addresses, key risks, and quick links. ## Core Products | Product | Type | Factsheet | | ------------ | ---------------- | -------------------------------------------------------------------------------- | | USD0 | Stablecoin | [USD0](/resources-and-ecosystem/fact-sheets/usual-products/usd0) | | EUR0 | Stablecoin | [EUR0](/resources-and-ecosystem/fact-sheets/usual-products/eur0) | | ETH0 | Synthetic | [ETH0](/resources-and-ecosystem/fact-sheets/usual-products/eth0) | | bUSD0 | Bond Token | [bUSD0](/resources-and-ecosystem/fact-sheets/usual-products/busd0) | | sUSD0 | Savings | [sUSD0](/resources-and-ecosystem/fact-sheets/usual-products/susd0) | | sEUR0 | Savings | [sEUR0](/resources-and-ecosystem/fact-sheets/usual-products/seur0) | | USD0a | Alpha Yield | [USD0a](/resources-and-ecosystem/fact-sheets/usual-products/usd0a) | | USUAL | Governance Token | [USUAL](/resources-and-ecosystem/fact-sheets/usual-products/usual) | | USUALx | Staked USUAL | [USUALx](/resources-and-ecosystem/fact-sheets/usual-products/usual/usualx) | | Usual Vaults | DeFi Strategies | [Usual Vaults](/resources-and-ecosystem/fact-sheets/usual-products/usual-vaults) | ## Credit Products | Product | Type | Factsheet | | ------- | ----------------- | -------------------------------------------------------------------- | | UZR | Zero Rate Lending | [UZR](/resources-and-ecosystem/fact-sheets/usual-products/busd0/uzr) | ## Collateral Assets | Asset | Provider | Factsheet | | ------- | -------------- | ------------------------------------------------------------------------------ | | USYC | Hashnote | [USYC](/resources-and-ecosystem/fact-sheets/collateral-assets/usyc-hashnote) | | USTBL | Spiko | [USTBL](/resources-and-ecosystem/fact-sheets/collateral-assets/ustbl-spiko) | | euTBL | Spiko | [euTBL](/resources-and-ecosystem/fact-sheets/collateral-assets/eutbl-spiko) | | USCC | Superstate | [USCC](/resources-and-ecosystem/fact-sheets/collateral-assets/uscc-superstate) | | USTB | Superstate | [USTB](/resources-and-ecosystem/fact-sheets/collateral-assets/ustb-superstate) | | $M / wM | M^0 Foundation | [$M / wM](/resources-and-ecosystem/fact-sheets/collateral-assets/m-wm-m0) | # Usual Products | Product | Type | Factsheet | | ------------ | ---------------- | -------------------------------------------------------------------------------- | | USD0 | Stablecoin | [USD0](/resources-and-ecosystem/fact-sheets/usual-products/usd0) | | EUR0 | Stablecoin | [EUR0](/resources-and-ecosystem/fact-sheets/usual-products/eur0) | | ETH0 | Synthetic | [ETH0](/resources-and-ecosystem/fact-sheets/usual-products/eth0) | | bUSD0 | Bond Token | [bUSD0](/resources-and-ecosystem/fact-sheets/usual-products/busd0) | | sUSD0 | Savings | [sUSD0](/resources-and-ecosystem/fact-sheets/usual-products/susd0) | | sEUR0 | Savings | [sEUR0](/resources-and-ecosystem/fact-sheets/usual-products/seur0) | | USD0a | Alpha Yield | [USD0a](/resources-and-ecosystem/fact-sheets/usual-products/usd0a) | | USUAL | Governance Token | [USUAL](/resources-and-ecosystem/fact-sheets/usual-products/usual) | | USUALx | Staked USUAL | [USUALx](/resources-and-ecosystem/fact-sheets/usual-products/usual/usualx) | | Usual Vaults | DeFi Strategies | [Usual Vaults](/resources-and-ecosystem/fact-sheets/usual-products/usual-vaults) | ## Credit Products | Product | Type | Factsheet | | ------- | ----------------- | -------------------------------------------------------------------- | | UZR | Zero Rate Lending | [UZR](/resources-and-ecosystem/fact-sheets/usual-products/busd0/uzr) | # USD0 > **Last updated:** 2026-02-16 *** ## Executive Summary **USD0** is a USD-pegged stablecoin issued by **Usual DAO** and fully collateralized by **short-duration U.S. Treasury Bills** and equivalent sovereign instruments. It is a permissionless, composable ERC-20 that can be minted and redeemed 1:1 against eligible real-world asset (RWA) collateral at any time. USD0 operates on **Ethereum** (primary), **Arbitrum**, **Base**, and **BNB Chain**. The collateral backing USD0 is held through multiple regulated tokenizers — primarily **Hashnote (USYC)**, with additional diversification via **M^0 ($M)** and **Spiko (USTBL)** — each subject to independent custody, auditing, and regulatory oversight. The protocol enforces a **zero-tolerance policy** on credit and FX risk, a maximum portfolio-average duration of **0.33 years**, and maintains a dedicated **Insurance Fund** sized between 0.33% and 5.33% of circulating USD0 supply. Minting and redemption are managed through two on-chain pathways: **direct** (deposit/withdraw tokenized T-Bills) and **indirect** (deposit USDC, matched with a collateral provider). Peg stability is maintained through arbitrage incentives, a multi-collateral controller, and a **Counter Bank Run (CBR) mechanism** as a last-resort safeguard. The protocol has undergone **20+ independent security audits** since May 2024. *** ## Key Facts | Parameter | Detail | | ------------------------- | -------------------------------------------------------------------------------- | | **Token name** | USD0 | | **Token standard** | ERC-20 | | **Peg** | 1 USD0 = 1 USD | | **Decimals** | 18 | | **Issuer** | Usual DAO (governance-owned) | | **Collateral** | 100% short-duration U.S. Treasury Bills and equivalent sovereign instruments | | **Primary tokenizer** | Hashnote (USYC) — CIMA licensed, CFTC registered | | **Additional tokenizers** | M^0 ($M), Spiko (USTBL — AMF regulated, UCITS) | | **Custody (USYC)** | The Bank of New York Mellon | | **Chains** | Ethereum, Arbitrum, Base, BNB Chain | | **Minting** | 1:1 against eligible RWA collateral (direct) or USDC (indirect) | | **Redemption** | 1:1 at par, on-chain, any time | | **Min. primary order** | 100,000 USD0 (indirect path); no minimum (direct path) | | **Audits** | 20+ audits — Cantina, Sherlock, Spearbit, Halborn, Hexens, Paladin, OAK Security | | **Governance** | 100% DAO-owned (UIP-15, Dec 2025) | *** ## Collateral Framework ### Eligible Collateral USD0 collateral must satisfy **four core criteria**: (1) fully collateralized with no leverage, (2) low-risk sovereign instruments only, (3) transparent with on-chain verifiability and independent audits, and (4) liquid with a maximum redemption horizon of **5 business days**. | Collateral | Issuer / Tokenizer | Regulatory Status | Custody | Settlement | | ---------- | ------------------------------------ | -------------------------------------- | ------------------------------------ | --------------------- | | **USYC** | Hashnote (Short Duration Yield Fund) | CIMA licensed, CFTC registered | BNY Mellon | T+0 to T+1 | | **M** | M^0 Protocol | Governed by Two-Token Governance (TTG) | SPV-held T-Bills, validated on-chain | On-chain | | **USTBL** | Spiko (US T-Bills Money Market Fund) | AMF authorized (France), UCITS | CACEIS Bank | Same-day (J) | | **USDC** | Circle | NY DFS regulated | Various (see Circle disclosures) | Indirect minting only | ### Risk Parameters | Parameter | Limit | | ---------------------------------- | ------------------------------------------------------------------------------------ | | **Max individual RWA duration** | < 0.5 years | | **Max portfolio average duration** | ≤ 0.33 years (\~4 months) | | **Passive deviation tolerance** | 0.25 years | | **FX risk** | Zero tolerance — USD-only or 100% hedged | | **Credit risk** | Zero tolerance — U.S. Treasuries, quasi-government, and cash only; no corporate debt | | **Max redemption horizon** | 5 business days | ### Tokenizer Due Diligence Each collateral tokenizer is evaluated across five dimensions before governance approval: 1. **Structuring & Regulation** — Legal entity, jurisdiction, bankruptcy remoteness, compliance framework 2. **Product Description** — Subscription/redemption mechanics, fees, token specifications 3. **Asset Management** — AUM, custody arrangements, investment policy constraints 4. **Risk Policy** — Audits performed, counterparty exposure, recovery procedures 5. **Operational Risk** — Governance, compliance history, business continuity planning ### Insurance Fund The protocol maintains a dedicated **Insurance Fund** to absorb adverse collateral events: | Parameter | Detail | | ---------------------- | ------------------------------------------------------------------------ | | **Funding rate** | \~20% of protocol yield (DAO-configurable) | | **Minimum size** | 0.33% of USD0 supply | | **Maximum size** | 5.33% of USD0 supply | | **Replenishment time** | \~24 days (at 0.33-year average duration, 5% coupon rate) | | **Stress scenario** | +100 bps interest rate shock in 1 month → \~0.33% loss (2022-calibrated) | *** ## Minting & Redemption ### Primary Market — Direct Path Institutional participants holding eligible tokenized collateral (USYC, $M, USTBL) may **deposit RWA tokens directly** into the protocol and receive USD0 at a 1:1 ratio. Redemption follows the reverse process: USD0 is surrendered and the holder receives the underlying RWA collateral at par. * **Contract:** DaoCollateral * **Exchange rate:** 1:1 at par (oracle-verified) * **Minimum:** None * **Settlement:** Immediate (on-chain) ### Primary Market — Indirect Path Users depositing **USDC** are matched with **Collateral Providers** who supply the RWA collateral on their behalf. Collateral Providers receive the USDC plus USUAL token incentives. * **Contract:** SwapperEngine * **Exchange rate:** 1USD0:1$ (depending of USDC price on secondary market) * **Minimum order:** 100,000 USD0 (orders below this threshold are routed to secondary markets) * **Settlement:** Dependent on collateral provider matching (typically same-day) ### Secondary Market USD0 is available on decentralized exchanges (Curve, Uniswap) and aggregators (Coswap, Velora) for immediate trading against USDC, USDT, and other assets. Arbitrage between primary and secondary markets naturally maintains peg stability. *** ## Fees | Fee type | Path | Amount | | ----------------------- | --------------------- | ----------------------------------------- | | Minting fee (direct) | RWA collateral → USD0 | 0 bps | | Minting fee (indirect) | USDC → USD0 | 0 bps (protocol level) | | Redemption fee (direct) | USD0 → RWA collateral | Governance-configurable (currently 0 bps) | | Secondary market | DEX trading | Standard AMM fees (pool-dependent) | Note: Collateral Providers receive USUAL token incentives for facilitating indirect minting. Fee parameters are subject to change through DAO governance. *** ## Peg Stability Mechanisms ### 1. Arbitrage Full redeemability at par creates a natural arbitrage loop: * **USD0 < $1:** Buy discounted USD0 on secondary market → redeem at par against collateral → profit * **USD0 > $1:** Mint USD0 at par → sell at premium on secondary market → profit ### 2. Multi Collateral Controller (MCC) The MCC optimizes collateral weights across tokenizers using a risk-adjusted scoring function that incorporates expected return, qualitative scoring, duration, and volatility. It operates on two layers: * **Layer 1 — Continuous reward adjustment:** USUAL incentive rates for collateral providers are dynamically adjusted; underrepresented collateral types receive higher rewards. * **Layer 2 — Triggered rebalancing:** When any collateral weight deviates beyond a governance-set threshold (ε), the system triggers active rebalancing. ### 3. Oracle Infrastructure | Oracle | Address (Ethereum) | Function | | ------------------------- | -------------------------------------------- | ---------------------------- | | **ClassicalOracle** | `0xb97e163cE6A8296F36112b042891CFe1E23C35BF` | Primary collateral valuation | | **Chainlink USD0 Oracle** | `0x7e891DEbD8FA0A4Cf6BE58Ddff5a8ca174FebDCB` | External USD0 price feed | ### 4. Counter Bank Run (CBR) Mechanism In extreme stress scenarios, the protocol can activate the CBR mechanism: 1. **Burn Insurance Fund reserves** to absorb losses 2. **Pause minting engine** to prevent dilution 3. **Route all activity through secondary markets** while the situation is resolved ### 5. Interest Rate Monitoring The protocol monitors collateral yields via: * Daily weighted sum of collateral rates * 180-day rolling average * Alert thresholds: ±5% deviation from prior day or ±20% deviation from SOFR *** ## Revenue Model USD0 collateral generates yield from short-duration U.S. Treasury instruments. This yield accrues to the protocol and is distributed as follows: | Allocation | Share | Mechanism | | ------------------------- | ----- | ------------------------------------------------- | | **Locked USUALx holders** | 30% | Weekly USD0 distributions via Revenue Switch | | **DAO Treasury** | 70% | Funds protocol development, insurance, operations | * Revenue Switch activated: **January 13, 2025** * Note: Simply staking USUAL → USUALx earns USUAL emissions but does **not** qualify for USD0 revenue distributions. A **lock commitment** (1, 3, 6, or 12 months) is required. *** ## Security & Audits The protocol has undergone **20+ independent security audits** since May 2024, covering core protocol contracts, all token implementations, bridging infrastructure, investment vaults, staking modules, and economic model assessments.
FirmScopePeriod
CantinaCore protocol, DaoCollateral, SwapperEngine, DistributionMay – Dec 2024
SherlockMultiple audit campaigns (8+) across all modulesNov 2024 – Nov 2025
SpearbitCore protocol, tokens, investment vaultsJan – Jul 2025
HalbornCore protocol, staking, EUR0/ETH0Nov 2024 – Nov 2025
HexensCore protocol, economic modelMay – Nov 2025
PaladinL2 deployment, OFT adapters, cross-chainOct 2024
OAK SecurityEconomic assessmentFeb 2025
BlackthorneCore protocolDec 2024
**Security contact:** *** ## Smart Contract Addresses ### USD0 Token | Chain | Address | | ------------- | -------------------------------------------- | | **Ethereum** | `0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5` | | **Arbitrum** | `0x35f1C5cB7Fb977E669fD244C567Da99d8a3a6850` | | **Base** | `0x758a3e0b1F842C9306B783f8A4078C6C8C03a270` | | **BNB Chain** | `0x758a3e0b1f842c9306b783f8a4078c6c8c03a270` | ### Core Protocol Contracts (Ethereum) | Contract | Address | | -------------------- | -------------------------------------------- | | **DaoCollateral** | `0xde6e1F680C4816446C8D515989E2358636A38b04` | | **SwapperEngine** | `0xB969B0d14F7682bAF37ba7c364b351B830a812B2` | | **TokenMapping** | `0x43882C864a406D55411b8C166bCA604709fDF624` | | **RegistryAccess** | `0x0D374775E962c3608B8F0A4b8B10567DF739bb56` | | **RegistryContract** | `0x0594cb5ca47eFE1Ff25C7B8B43E221683B4Db34c` | ### Collateral Token Addresses (Ethereum) | Token | Address | | ----------------------- | -------------------------------------------- | | **USYC (Hashnote)** | `0x136471a34f6ef19fE571EFFC1CA711fdb8E49f2b` | | **M (M^0)** | `0x866A2BF4E572CbcF37D5071A7a58503Bfb36be1b` | | **UsualM (wrapped)** | `0x4Cbc25559DbBD1272EC5B64c7b5F48a2405e6470` | | **USDC** | `0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48` | | **UsualUSDC (wrapped)** | `0xb672B3976bAa3952bFb2eCE8eeFB784f8daB1424` | ### Oracles (Ethereum) | Oracle | Address | | ------------------------- | -------------------------------------------- | | **ClassicalOracle** | `0xb97e163cE6A8296F36112b042891CFe1E23C35BF` | | **Chainlink USD0 Oracle** | `0x7e891DEbD8FA0A4Cf6BE58Ddff5a8ca174FebDCB` | *** ## Governance USD0 is governed by **Usual DAO**, which holds **100% ownership** of all protocol assets, intellectual property, and operational parameters (UIP-15, December 2025). **Usual Labs** operates as a **service provider** to the DAO under a defined mandate. Key governance decisions affecting USD0: * Collateral onboarding/offboarding (e.g., UIP-14: USTBL approval; UIP-16: UZR approval) * Risk parameter calibration (duration limits, insurance fund sizing) * Fee structure modifications * Multi Collateral Controller weight adjustments * Emergency actions (CBR activation, minting pause) Governance is exercised through the **USUAL token** via on-chain voting (UIPs — Usual Improvement Proposals). *** ## Key Risks | Risk Category | Description | Mitigation | | ----------------------- | ---------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | | **Collateral risk** | Adverse event at a tokenizer or custodian could impair underlying collateral value | Diversified tokenizer base; Insurance Fund; CBR mechanism; zero credit/FX tolerance | | **Interest rate risk** | Rising rates reduce mark-to-market value of T-Bill holdings | Max portfolio duration ≤ 0.33 years; stress-tested for +100 bps shock | | **Counterparty risk** | Failure of tokenizer, fund manager, custodian, or banking partner | Multi-provider diversification; regulated entities (BNY Mellon, CACEIS); due diligence framework | | **Smart contract risk** | Vulnerability in protocol code | 20+ audits; upgradeable proxy architecture; bug reporting | | **Liquidity risk** | Temporary inability to redeem at par during extreme market stress | 5-day max redemption horizon; Insurance Fund; CBR mechanism; secondary market liquidity | | **Oracle risk** | Incorrect price feed could affect minting/redemption pricing | Dual oracle system (ClassicalOracle + Chainlink); monitoring alerts | | **Governance risk** | DAO decisions that adversely affect USD0 parameters | On-chain voting via UIPs; transparent proposal process; multi-signature execution | | **Regulatory risk** | Evolving regulatory landscape for stablecoins and tokenized securities | Multi-jurisdictional tokenizer diversification (CIMA, AMF, CFTC); no leverage; full backing | | **Concentration risk** | Over-reliance on a single collateral provider | Multi Collateral Controller enforces diversification; active expansion of tokenizer base | *** ## Quick Links * Usual Protocol — Documentation: * USD0 — Product Overview: * Collateral & Backing: * Minting & Redeeming: * Security & Audits: * Governance (UIPs): * Etherscan — USD0 Token: *** ## Disclaimer This factsheet is provided for **informational purposes only** and does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy any security or financial instrument. USD0 is a decentralized protocol token governed by Usual DAO; participation involves risks including but not limited to smart contract risk, collateral risk, regulatory risk, and market risk. Past performance and historical data are not indicative of future results. Investors should conduct their own due diligence and consult professional advisors before acquiring or interacting with USD0. All smart contract addresses should be independently verified on the respective block explorers. Protocol parameters are subject to change through DAO governance. # sUSD0 > **Last updated:** 2026-02-16 *** ## Executive Summary **sUSD0** is the savings token for USD0, implemented as a **permissionless ERC-4626 vault**. Users deposit USD0 and receive sUSD0 shares representing a proportional claim on the vault's total assets. sUSD0 is **non-rebasing**: balances remain constant while value accrues through a rising exchange rate. Redeeming sUSD0 returns more USD0 than originally deposited, with the difference representing the accumulated yield. Yield originates from the protocol's revenue and is routed to sUSD0 holders via the vault's exchange-rate mechanism. Distribution parameters, including the rate of yield allocation, are governed by **Usual DAO** and may vary with market conditions and governance decisions. The yield is denominated in **USD0,** distinguishing sUSD0 from bUSD0 where yield is denominated in USUAL tokens. sUSD0 requires no lock-up: deposits and withdrawals are available at any time, subject to on-chain settlement and any applicable redemption fee (currently 3 bps). The ERC-4626 standard ensures broad DeFi composability with lending markets, yield routers, structured vaults, and Pendle-style PT/YT products. *** ## Key Facts | Parameter | Detail | | ---------------------- | ---------------------------------------------------------------------------------------------------------- | | **Token name** | sUSD0 (Savings USD0) | | **Token standard** | ERC-4626 (tokenized vault) | | **Decimals** | 18 | | **Issuer** | Usual DAO (governance-owned) | | **Underlying** | USD0 — RWA-backed USD stablecoin (T-Bills, USYC) | | **Value accrual** | Non-rebasing; exchange rate increases over time | | **Redemption math** | USD0 out = sUSD0 shares x exchangeRate (where exchangeRate >= 1) | | **Yield source** | Protocol revenue from T-Bill collateral and DAO allocation | | **Yield denomination** | USD0 (real yield) | | **Lock-up** | None — deposit and withdraw freely | | **Access** | Permissionless; no KYC/KYB required | | **Wrap fee** | Free | | **Redeem fee** | Up to 3 bps | | **Chain** | Ethereum | | **Governance** | 100% DAO-owned (UIP-15, Dec 2025) | | **Audits** | Hexens (sUSD0 audit, Nov 2025); Spearbit (Yield Module, Feb 2025); part of 20+ protocol-wide audit program | *** ## How sUSD0 Works ### Deposit (Wrap) ``` Deposit USD0 → Receive sUSD0 shares at current exchangeRate ``` sUSD0 shares represent a proportional claim on the vault's total USD0 holdings. The number of shares received is determined by the current exchange rate at time of deposit. ### Yield Accrual The vault's exchange rate increases over time as the protocol routes yield from DAO revenue (sourced from T-Bill collateral returns) into the vault. There are no claims to process and no manual actions required; value accrues passively. ### Withdrawal (Unwrap) ``` Burn sUSD0 → Receive USD0 at current exchangeRate (minus any redemption fee) ``` Because the exchange rate only increases, the USD0 received upon redemption exceeds the amount originally deposited (assuming positive yield over the holding period and net of fees). *** ## Yield Source & Collateral Stack ### Revenue Chain sUSD0 yield traces back to the real-world returns generated by the collateral backing USD0: ``` T-Bill Collateral (USYC, M, USTBL) + Protocol fees → Generates sovereign fixed-income yield + income → Captured as protocol revenue → Portion allocated to sUSD0 vault by DAO → Exchange rate increases → sUSD0 holder's USD0 claim grows ``` ### Collateral Composition USD0 is fully backed by short-duration U.S. Treasury Bills and equivalent sovereign instruments held through regulated tokenizers: | Collateral | Tokenizer | Regulatory Status | Custody | | ---------- | ------------ | ------------------------------ | ---------------- | | **USYC** | Hashnote | CIMA licensed, CFTC registered | BNY Mellon | | **$M** | M^0 Protocol | TTG governance | SPV-held T-Bills | | **USTBL** | Spiko | AMF authorized (France), UCITS | CACEIS Bank | ### Yield Characteristics | Property | Detail | | ----------------------- | -------------------------------------------------------------------------------------- | | **Denomination** | USD0 (real yield) | | **Source** | T-Bill collateral returns allocated by DAO | | **Variability** | Variable; depends on collateral yields and governance-set allocation | | **Guarantee** | Not guaranteed — subject to collateral performance and DAO decisions | | **Distribution method** | Automatic via exchange-rate increase; no claims required | | **Boost at launch** | Governance may temporarily boost the rate; convergence to sustainable levels over time | *** ## sUSD0 vs. bUSD0 | Dimension | sUSD0 | bUSD0 | | -------------------------- | ------------------------------------------- | ---------------------------------------------------- | | **Mechanism** | ERC-4626 vault; exchange-rate accrual | Liquid bond; daily USUAL token coupons | | **Lock-up** | None | Bond with maturity (June 2028) | | **Yield denomination** | USD0 (real yield) | USUAL tokens (alpha yield) | | **Yield type** | Predictable, T-Bill-based | Variable; dependent on USUAL token price | | **Early exit** | Instant redemption at current exchange rate | Secondary market sale or recombination with rt-bUSD0 | | **Token price volatility** | Minimal — exchange rate only increases | May trade at discount to par before maturity | | **DeFi composability** | High (ERC-4626 standard) | High (tradeable ERC-20; usable as collateral) | sUSD0 is designed for participants seeking **stable, predictable yield denominated in USD0**, with no lock-up and no direct exposure to token price volatility. bUSD0 is designed for participants willing to commit capital for potentially higher returns driven by USUAL emissions and bond discount dynamics. *** ## sUSD0 vs. USD0 Rebasing Track The protocol also supports a **rebasing mode** where yield is distributed directly to USD0 balances at the cash layer, without wrapping into a vault token. The rebasing track is a separate feature: | Dimension | sUSD0 (Accruing) | USD0 Rebasing | | -------------------- | ----------------------------------- | ------------------------------------------- | | **Access** | Permissionless | KYC/KYB required ($100K+ minimum) | | **Yield method** | Exchange-rate accrual (no claims) | Claim-based via Brevis ZK proofs (Incentra) | | **Balance behavior** | Fixed balance, rising exchange rate | Balance increases directly | | **Use case** | DeFi-native composability | Institutional wallets, payment interfaces | *** ## Fees | Fee | Amount | Notes | | ------------------- | ----------- | ---------------------------------------- | | **Wrap (deposit)** | 0 bps | No fee to deposit USD0 into sUSD0 vault | | **Unwrap (redeem)** | Up to 3 bps | Governance-configurable; currently 0 bps | | **Network gas** | Variable | Standard Ethereum gas costs apply | *** ## Smart Contract Addresses ### sUSD0 Token | Chain | Address | | ------------ | -------------------------------------------- | | **Ethereum** | `0xd861bE82dEe3223CFBEd160791f6550b0704D406` | ### Related Contracts (Ethereum) | Contract | Address | | --------------------- | -------------------------------------------- | | **USD0 (underlying)** | `0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5` | | **USUAL** | `0xC4441c2BE5d8fA8126822B9929CA0b81Ea0DE38E` | | **YieldModule** | `0x647F8987C288bf6D2fDb332918E1E14424839EDA` | | **DaoCollateral** | `0xde6e1F680C4816446C8D515989E2358636A38b04` | ### Oracles (Ethereum) | Oracle | Address | | ------------------------- | -------------------------------------------- | | **ClassicalOracle** | `0xb97e163cE6A8296F36112b042891CFe1E23C35BF` | | **Chainlink USD0 Oracle** | `0x7e891DEbD8FA0A4Cf6BE58Ddff5a8ca174FebDCB` | *** ## Key Risks | Risk Category | Description | Mitigation | | ------------------------------ | ------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------ | | **Yield variability** | Returns depend on T-Bill collateral yields and DAO allocation decisions; yield is not guaranteed | Sovereign collateral generates stable base yield; governance-set parameters ensure sustainability | | **Underlying collateral risk** | Adverse event at a tokenizer or custodian could impair USD0 collateral value | Diversified tokenizer base (Hashnote, M^0, Spiko); Insurance Fund (0.33-5.33% of USD0 supply); zero credit/FX tolerance | | **Interest rate risk** | Rising rates reduce mark-to-market value of T-Bill holdings, potentially reducing yield | Max portfolio duration <= 0.33 years; stress-tested for +100 bps shock | | **Smart contract risk** | Vulnerability in sUSD0 vault, YieldModule, or underlying USD0 contracts | sUSD0 audited by Hexens (Nov 2025); Yield Module audited by Spearbit (Feb 2025); part of 20+ protocol-wide audit program | | **Peg risk** | USD0 may temporarily deviate from $1 on secondary markets | Arbitrage incentives; Insurance Fund; Counter Bank Run (CBR) mechanism; 5-day max redemption horizon on collateral | | **Oracle risk** | Incorrect price feed could affect USD0 valuation and by extension sUSD0 yield | Dual oracle system (ClassicalOracle + Chainlink); continuous monitoring with alert thresholds | | **Governance risk** | DAO decisions affecting yield allocation, redemption fees, or vault parameters | On-chain voting via UIPs; transparent proposal process; fee cap at 3 bps | | **Counterparty risk** | Failure of tokenizer, fund manager, custodian, or banking partner | Multi-provider diversification; regulated entities (BNY Mellon, CACEIS); rigorous due diligence framework | | **Regulatory risk** | Evolving regulatory landscape for stablecoins and yield-bearing instruments | Multi-jurisdictional tokenizer diversification (CIMA, AMF, CFTC); no leverage; full backing | *** ## Security & Audits sUSD0 is covered by the protocol-wide security program comprising **20+ independent audits** since May 2024. | Firm | Scope | Date | | ------------ | ------------------------------------------------------- | -------------------- | | **Hexens** | sUSD0 and sEUR0 audit | Nov 2025 | | **Spearbit** | Yield Module audit | Feb 2025 | | **Halborn** | RDM (Revenue Distribution Module) audit | Nov 2025 | | **Sherlock** | Multiple audit campaigns covering protocol-wide modules | Nov 2024 -- Nov 2025 | **Bug Bounty:** Active program via Sherlock Bug Bounties (audits.sherlock.xyz/bug-bounties). Triage and severity handled by Sherlock's security team. **Security contact:** *** ## Quick Links * sUSD0 — Product Overview: * Security & Audits: * Contract Deployments: * Etherscan — sUSD0: *** ## Disclaimer This factsheet is provided for **informational purposes only** and does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy any security or financial instrument. sUSD0 is a decentralized protocol token governed by Usual DAO; participation involves risks including but not limited to smart contract risk, collateral risk, yield variability, and regulatory risk. Yields are variable and not guaranteed; past performance is not indicative of future results. The sUSD0 vault depends on protocol-level revenues, collateral performance, oracle and contract operations, and governance parameters. All smart contract addresses should be independently verified on the respective block explorers before interacting. Protocol parameters — including redemption fees, yield allocation rates, and governance structure — are subject to change through DAO governance. # bUSD0 > **Last updated:** 2026-02-16 *** ## Executive Summary **bUSD0** is a non-rebasing, fixed-notional bond token issued by **Usual DAO**. It represents a locked position in USD0 that generates yield through daily **USUAL token coupons**. Users lock USD0 on the primary market and receive bUSD0 plus rt-bUSD0 (redeem token), enabling a two-token design that separates the yield-bearing position from the early-exit right. The current series matures on **June 11, 2028**, at which point each bUSD0 is redeemable 1:1 for USD0 with no additional conditions. bUSD0 was redesigned under **UIP-12** (November 2025), which introduced the rt-bUSD0 early-exit mechanism, replacing the legacy USUAL burning redemption. Following the **UIP-11** disinflation (November 2025), daily USUAL emissions to the bTOKEN bucket were capped at approximately **130,000 USUAL/day**. Positions held within the USL (Usual Stability Loan) or UZR (Fira) lending markets receive **0% USUAL emissions**, functioning as pure zero-coupon bonds. bUSD0 is a fully transferable ERC-20 token composable across the DeFi ecosystem. Active integrations include **Pendle** (yield tokenization via PT/YT), **Morpho** (isolated lending markets), **Curve** (USD0/bUSD0 liquidity pool), **Aave** (lending), and **Fira** (fixed-rate borrowing via USL migration). bUSD0 is deployed on **Ethereum** (primary) and **Arbitrum**. *** ## Key Facts | Parameter | Detail | | ------------------------------ | --------------------------------------------------------- | | **Token name** | bUSD0 (Bond USD0) | | **Former name** | USD0++ (renamed via UIP-12, November 2025) | | **Token standard** | ERC-20 | | **Decimals** | 18 | | **Issuer** | Usual DAO (governance-owned) | | **Underlying** | USD0 — RWA-backed USD stablecoin (T-Bills, USYC) | | **Notional** | 1 bUSD0 = 1 USD0 at maturity (fixed) | | **Rebasing** | No — yield distributed as separate USUAL tokens | | **Maturity** | June 11, 2028 | | **Minting** | 1 USD0 → 1 bUSD0 + 1 rt-bUSD0 | | **Maturity redemption** | 1 bUSD0 → 1 USD0 (guaranteed, no conditions) | | **Early redemption** | 1 bUSD0 + 1 rt-bUSD0 → 1 USD0 (primary market) | | **Yield type** | Daily USUAL token coupon | | **Daily USUAL allocation** | \~130,000 USUAL/day for the bTOKEN bucket (post-UIP-11) | | **Yield on USL/UZR positions** | 0% USUAL emissions (pure zero-coupon) | | **Floor price** | 0.92 USD0 (DAO governance-set, primary market) | | **Chains** | Ethereum, Arbitrum | | **Transferable** | Yes — freely tradeable on secondary markets | | **Governance** | 100% DAO-owned (UIP-15, Dec 2025) | | **Audits** | 20+ audits — Cantina, Sherlock, Spearbit, Halborn, Hexens | *** ## Minting & Redemption ### Primary Market — Minting Depositing USD0 into the bUSD0 contract produces two tokens: ``` 1 USD0 → 1 bUSD0 + 1 rt-bUSD0 ``` * **bUSD0** is the locked yield-bearing position. * **rt-bUSD0** is the early-exit right token, tradeable independently on secondary markets. ### Maturity Redemption (June 11, 2028) ``` 1 bUSD0 → 1 USD0 ``` No additional tokens or conditions are required. The holder receives exactly 1 USD0 per bUSD0 at maturity. ### Early Redemption (Before Maturity) Recombination on the primary market: ``` 1 bUSD0 + 1 rt-bUSD0 → 1 USD0 ``` Both the bond position and the early-exit right must be presented together. The cost of early exit is determined by the secondary market price of rt-bUSD0. ### Early Exit Alternatives | Method | Value Received | Retains Yield | Requires rt-bUSD0 | | ------------------------- | ------------------------ | -------------------- | ----------------- | | Primary recombination | 1 USD0 | No | Yes | | Sell rt-bUSD0 (secondary) | Market price of rt-bUSD0 | Yes (on bUSD0) | N/A (selling it) | | Sell bUSD0 (secondary) | Market price of bUSD0 | No | No | | Hold to maturity | 1 USD0 (guaranteed) | Yes (until maturity) | No | *** ## Yield Mechanism ### Daily USUAL Coupon bUSD0 holders earn yield through **daily USUAL token coupons** distributed automatically. The yield is proportional to the amount of bUSD0 held. Yield is denominated in USUAL tokens, not USD0; realized USD value depends on the market price of USUAL. ### Post-UIP-11 Emission Structure (November 2025) Following the UIP-11 disinflation, the bTOKEN bucket receives a capped allocation: | Position Type | Daily USUAL | % of Total Emissions | | --------------------------------------- | --------------- | -------------------- | | bUSD0 (outside USL/UZR) | \~127,718 | 9.5% | | bUSD0 (in USL or UZR) | 0 | 0.0% | | **Total daily emissions (all buckets)** | **\~1,348,972** | **100%** | ### Zero-Coupon Bond Structure (USL/UZR Positions) Positions within the USL (Euler, now migrated to Fira) and UZR lending markets receive **0% USUAL emissions**. Yield derives entirely from the discount to par: * At a secondary market price of $0.92 with \~2.3 years to maturity, implied yield is approximately **3.5% APR**. * With maximum leverage, this can be amplified (theoretical maximum \~8x via looping). *** ## Token Separation Design The two-token architecture introduced by UIP-12 enables distinct strategies: | Property | bUSD0 | rt-bUSD0 | | -------------------------------- | -------------------- | ---------------- | | Represents | Locked USD0 position | Early-exit right | | Earns yield | Yes (USUAL coupons) | No | | Required for early redemption | Yes | Yes | | Required for maturity redemption | Yes | No | | Tradeable | Yes | Yes | **Yield maximizers** can sell rt-bUSD0 to capture upfront value while continuing to earn USUAL coupons. **Arbitrageurs** can exploit pricing inefficiencies between bUSD0, rt-bUSD0, and USD0 across primary and secondary markets. *** ## USL (Usual Stability Loan) Integration bUSD0 serves as collateral in the Usual Stability Loan mechanism, originally deployed on Euler and migrated to Fira in January 2026. | Parameter | Value | | -------------------------------- | ---------------------------------------------------- | | **Borrow asset** | USD0 | | **Borrow rate** | 0% base + 0.10% APR protocol fee (10 bps, immutable) | | **LTV** | 0.88 | | **LLTV (liquidation threshold)** | 0.9999 | | **Oracle** | Fixed at 1:1 (USD0 : bUSD0) | | **USUAL emissions on USL** | 0% | | **Liquidation before maturity** | Not possible under fixed oracle regime | | **Vault type** | Ungoverned — immutable parameters | The DAO supplies USD0 to the USL vault. The system employs 1:1 rehypothecation to ensure free-floating USD0 remains backed by RWA collateral. Looping yields a theoretical maximum leverage of approximately **8.33x** (1 / (1 - 0.88)). *** ## DeFi Composability bUSD0 is composable across the following protocols: | Protocol | Integration | Use Case | | -------------- | ------------------------- | ------------------------------------------------------------ | | **Pendle** | PT/YT yield tokenization | Fixed-rate strategies (PT) and leveraged yield exposure (YT) | | **Morpho** | Isolated lending markets | Collateral for borrowing; leveraged yield strategies | | **Curve** | USD0/bUSD0 liquidity pool | Secondary market liquidity, peg support | | **Aave** | Lending/borrowing | Collateral and supply asset | | **Contango** | Perp-like positions | Leveraged USD0 yield via Morpho | | **Fira (USL)** | Fixed-rate borrowing | Zero-coupon leverage against bUSD0 collateral | *** ## Fees | Fee | Amount | Notes | | -------------------- | ------------------ | ------------------------------------------ | | **Minting fee** | 0 bps | No fee to lock USD0 into bUSD0 | | **UZR protocol fee** | 10 bps (0.10% APR) | Immutable; accrues to Usual DAO | | **Network gas** | Variable | Standard Ethereum/Arbitrum gas costs apply | *** ## Smart Contract Addresses ### bUSD0 Token | Chain | Address | | ------------ | -------------------------------------------- | | **Ethereum** | `0x35D8949372D46B7a3D5A56006AE77B215fc69bC0` | | **Arbitrum** | `0x2B65F9d2e4B84a2dF6ff0525741b75d1276a9C2F` | ### rt-bUSD0 (Right Token) | Chain | Address | | ------------ | -------------------------------------------- | | **Ethereum** | `0x82DCA22b48B14DE38ccf83B03330120c4b8acFe9` | ### Related Contracts (Ethereum) | Contract | Address | | ---------------- | -------------------------------------------- | | **USD0** | `0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5` | | **USUAL** | `0xC4441c2BE5d8fA8126822B9929CA0b81Ea0DE38E` | | **Distribution** | `0x75cC0C0DDD2Ccafe6EC415bE686267588011E36A` | *** ## Key Risks | Risk Category | Description | Mitigation | | ------------------------------ | -------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------ | | **USUAL price risk** | Yield is denominated in USUAL tokens; realized USD value depends on USUAL market price | Diversified yield sources; USL zero-coupon positions remove USUAL price dependency | | **Secondary market discount** | bUSD0 may trade below its 1 USD0 face value before maturity | Floor price mechanism (0.92 USD0); rt-bUSD0 early redemption; guaranteed 1:1 at maturity | | **Maturity concentration** | All bUSD0 matures on June 11, 2028; mass redemption could create liquidity pressure | DAO liquidity planning; Insurance Fund; Counter Bank Run (CBR) mechanism | | **Smart contract risk** | Vulnerability in bUSD0, rt-bUSD0, or USL contracts | 20+ independent audits; upgradeable proxy architecture; Sherlock bug bounty program | | **Underlying collateral risk** | Adverse event affecting USD0 collateral (T-Bills, tokenizer failure) | Diversified tokenizer base; strict duration limits (avg. ≤ 0.33 years); Insurance Fund (0.33-5.33% of USD0 supply) | | **Oracle risk (USL)** | Oracle change from fixed to floating could trigger liquidations | Current oracle is immutable (ungoverned vault); any transition requires DAO governance and stress testing | | **Leverage risk** | Looping strategies amplify losses if bUSD0 price declines | LTV cap of 0.86; LLTV at 0.99; no liquidation before maturity under fixed oracle | | **Governance risk** | DAO decisions affecting floor price, emissions, or USL parameters | On-chain voting via UIPs; transparent proposal process | | **Liquidity risk** | Insufficient secondary market liquidity for bUSD0 or rt-bUSD0 during stress events | Curve pool liquidity; Pendle markets; multiple DEX venues | *** ## Governance History | UIP | Date | Decision | | ------ | -------- | ------------------------------------------------------------------------------------------------------- | | UIP-6 | Apr 2025 | Raised floor price from $0.87 to $0.92; increased early redemption cost (T: 180 → 730) | | UIP-11 | Nov 2025 | Disinflation: daily emissions halved; bTOKEN bucket capped at \~130K USUAL/day; USL emissions set to 0% | | UIP-12 | Nov 2025 | Renamed USD0++ to bUSD0; introduced rt-bUSD0 early-exit mechanism; replaced USUAL burning redemption | *** ## Quick Links * bUSD0 — Product Overview: * UZR — Usual Zero Rate: * Security & Audits: * Contract Deployments: * Etherscan — bUSD0: * Etherscan — rt-bUSD0: *** ## Disclaimer This factsheet is provided for **informational purposes only** and does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy any security or financial instrument. bUSD0 is a decentralized protocol token governed by Usual DAO; participation involves risks including but not limited to smart contract risk, collateral risk, USUAL token price risk, secondary market discount risk, and regulatory risk. The yield on bUSD0 is denominated in USUAL tokens and is variable; past yield performance is not indicative of future results. Protocol parameters — including floor price, emission rates, USL terms, and governance structure — are subject to change through DAO governance. All smart contract addresses should be independently verified on the respective block explorers before interacting. # UZR > **Type:** Factsheet | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary Usual Zero Rate (UZR) is the first lending market deployed on Fira (Usual Credit), the fixed-rate lending protocol owned by the Usual DAO. UZR enables users to borrow USD0 against bUSD0 collateral at a 0% base rate with a 0.10% APR (10 bps) protocol fee. The product is designed to allow users to leverage the discount at which bUSD0 trades relative to its par value, capturing the convergence to par at maturity (11 June 2028). UZR uses a fixed 1:1 oracle for the bUSD0/USD0 price, maximizing borrowing capacity relative to mark-to-market alternatives. The protocol fee is governed by an immutable interest rate strategy contract, ensuring that the rate cannot be changed after market creation. UZR launched on 14 January 2026 and surpassed $250M in TVL within its first week of operation. UZR replaced the prior USL product on Euler, bringing credit TVL onto DAO-owned infrastructure and eliminating third-party fee leakage estimated at approximately $700K per year. *** ## Key Facts | Parameter | Detail | | ------------------------ | -------------------------------------------------------- | | **Product** | Usual Zero Rate (UZR) | | **Type** | Fixed-rate lending market | | **Protocol** | Fira (Usual Credit) | | **Owner** | Usual DAO | | **Chain** | Ethereum Mainnet | | **Launch date** | 14 January 2026 | | **Base borrow rate** | 0% | | **Protocol fee** | 0.10% APR (10 bps), immutable | | **Collateral** | bUSD0 (Bonded USD0) | | **Loan asset** | USD0 | | **LTV** | 88% | | **LLTV** | 99.99% | | **Oracle** | Fixed 1:1 (bUSD0/USD0) | | **Maturity** | 11 June 2028, 11:30 UTC (Unix: 1844335800) | | **Vault token** | U0R | | **Lending side** | Usual DAO is sole lender; individual users cannot supply | | **Governance approvals** | UIP-16 (97.9% For), UIP-18 (95.8% For) | *** ## Mechanism ### Borrowing Users deposit bUSD0 as collateral into the UZR lending market and borrow USD0 at a 0% base rate plus a 0.10% APR protocol fee. The fixed-price oracle values bUSD0 at 1:1 with USD0, regardless of secondary market price, enabling higher borrowing capacity than mark-to-market alternatives. The 0.10% APR fee accrues continuously on outstanding debt (not per borrow event). The interest rate strategy contract is immutable -- the rate cannot be altered by the protocol team or governance after market creation. ### Leverage Loop Borrowed USD0 can be swapped for bUSD0 on secondary markets (where bUSD0 typically trades below par) and redeposited as collateral. This loop increases exposure to the discount-to-par convergence at maturity. **Illustrative example (1,000 bUSD0, bUSD0 price \~0.9263 USD0):** | Step | Action | Result | | ---- | ---------------------------------- | -------------------------------------------------------------- | | 1 | Deposit 1,000 bUSD0 | Collateral: 1,000 bUSD0 | | 2 | Borrow at 88% LTV | Borrow: 880 USD0 | | 3 | Swap 880 USD0 for \~950 bUSD0 | Acquire: 950 bUSD0 | | 4 | Deposit 950 bUSD0, borrow 836 USD0 | Collateral: 1,950 bUSD0; Debt: 1,716 USD0 | | 5 | At maturity (par redemption) | Collateral value: 1,950 USD0; Profit: \~232 USD0 (net of fees) | **Maximum leverage formula:** `LTV / (Price - LTV) + 1` At 88% LTV, theoretical maximum leverage is approximately 12.3x (versus 8.1x on Euler USL due to different LTV configurations). ### Multiply The Multiply feature enables users to scale UZR positions in a single flow, with real-time visibility into resulting LTV, borrow amount, and position health. This replaces the manual multi-step loop process. ### Repayment Users repay USD0 debt to close positions and unlock bUSD0 collateral. Repayment is available at any time before maturity. After maturity, bUSD0 redeems at par (1:1 with USD0). ### Maturity and Forced Liquidation At the defined maturity (11 June 2028, 11:30 UTC), the DAO may trigger forced liquidation of all open positions, regardless of health factor. This is an intentional feature of the maturity-based collateral lifecycle. *** ## Comparison: UZR vs. USL (Euler) | Parameter | UZR (Fira) | USL (Euler) | | ----------------------------- | ------------------ | ------------------ | | Borrow rate | 0% + 0.10% fee | 1.5-2% | | LTV | 88% | 87.7% | | Max leverage | \~12.3x | \~8.1x | | Oracle | Fixed 1:1 | Mark-to-market | | Fee destination | Usual DAO | Euler + external | | Infrastructure owner | Usual DAO | Euler Labs | | USUAL emissions on collateral | None (zero-coupon) | None (post-UIP-11) | *** ## Migration Migration from Euler USL to Fira UZR is optional and uses an atomic, flash-style operation: 1. DAO enables migration capacity 2. bUSD0 collateral is withdrawn from Euler 3. bUSD0 is posted as collateral on UZR 4. USD0 is borrowed on UZR at up to 88% LTV 5. Borrowed USD0 repays the Euler debt 6. Euler loan token is burned No additional protocol fees apply (gas costs remain). *** ## Fees | Fee | Amount | Recipient | | ---------------- | ----------------------------- | --------- | | Base borrow rate | 0% | N/A | | Protocol fee | 0.10% APR (10 bps), immutable | Usual DAO | | Migration fee | None | N/A | *** ## Smart Contract Addresses ### Core Contracts (Ethereum Mainnet) | Contract | Address | | ---------------------------------- | -------------------------------------------- | | UZR Lending Market | `0xa428723eE8ffD87088C36121d72100B43F11fb6A` | | USD0/bUSD0 Oracle (fixed 1:1) | `0x30Da78355FcEA04D1fa34AF3c318BE203C6F2145` | | Permissioned Sisu Vault | `0xFE7C47895eDb12a990b311Df33B90Cfea1D44c24` | | Fixed Rate IRM (10 bps, immutable) | `0xdfCF197B0B65066183b04B88d50ACDC0C4b01385` | | USL Migrator | `0x809C212b710f5b8E3F9898213f0D845E2Bc46EC2` | | Stale Oracle Feed | `0xFDF9F131604aaF4832efD6485a321d9165Ff5182` | | UZR Vault Oracle Adaptor | `0x60f85e06665cecc7782279eee5fc58b3a33910da` | ### Token Addresses | Token | Address | | ------------------------ | -------------------------------------------- | | USD0 (Loan Token) | `0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5` | | bUSD0 (Collateral Token) | `0x35D8949372D46B7a3D5A56006AE77B215fc69bC0` | ### Market Identifier | Parameter | Value | | -------------------------- | -------------------------------------------------------------------- | | Market ID | `0xA597B5A36F6CC0EDE718BA58B2E23F5C747DA810BF8E299022D88123AB03340E` | | Interest rate (per-second) | `0.1e16 / uint256(365 days) == 31709791` | *** ## Key Risks | Risk Category | Description | Mitigation | | ----------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Oracle model** | The fixed 1:1 oracle does not reflect bUSD0's secondary market price. If bUSD0 trades materially below par, borrowers retain full borrowing power despite the collateral being worth less at market. This creates systemic undercollateralization risk on a mark-to-market basis. | Deliberate design choice: maturity-based valuation assumes hold-to-par. LLTV at 99.99% ensures positions remain viable until maturity. Forced liquidation at maturity closes all positions. | | **Liquidation** | Positions exceeding the LLTV threshold (99.99%) are subject to automatic liquidation. In practice, this threshold is extremely high, meaning liquidations primarily occur at maturity enforcement or under extraordinary oracle/governance actions. | Conservative initial LTV (88%); 12% buffer between LTV and LLTV; active monitoring tools; UZR Simulator for pre-entry risk modeling. | | **Maturity / forced closure** | All open positions are subject to forced liquidation at maturity (11 June 2028). Users who fail to close positions before maturity may have their collateral seized. | Clear maturity date communicated in product; maturity enforcement is a known design feature. | | **bUSD0 collateral** | bUSD0 is a bonded instrument with locked USD0 until maturity. Its value depends on the creditworthiness of the Usual Protocol, the underlying T-Bill collateral (USYC), and the integrity of the bUSD0 smart contracts. | USD0 is backed by US Treasury Bills (Hashnote USYC); 20+ audits on the Usual Protocol; bUSD0 redeems at par at maturity. | | **Smart contract** | UZR operates on newly deployed Fira infrastructure. Despite three external audits and an extended internal review, undiscovered vulnerabilities may exist. | Sherlock, Cantina, yAudit audits (0 Critical / 0 High findings); month-long internal review; phased rollout; pause guardian capability. | | **Leverage amplification** | Recursive leverage loops amplify both potential returns and potential losses. Users operating at high leverage are more sensitive to adverse market conditions. | Multiply feature provides real-time position monitoring; simulator available for stress testing; leverage is a user-controlled parameter. | | **Migration (one-way)** | Positions migrated from Euler to Fira cannot be migrated back. | Migration is voluntary; Euler USL remains operational; users can choose to remain on Euler. | | **Governance / parameter** | The DAO controls lending caps, migration capacity, and maturity enforcement. Changes to governance parameters could affect position economics. | Interest rate strategy contract is immutable after market creation; key parameters approved via DAO governance votes with supermajority thresholds. | *** ## Quick Links | Resource | URL | | ------------------------------- | --------------------------------------------------------------------------------------------------------------------- | | Fira App (UZR) | | | UZR Documentation | | | UZR Simulator | | | Contracts & Audits | | | Dune Dashboard | | | DeFiLlama | | | UIP-16 (U0R as USD0 Collateral) | | | UIP-18 (UZR Launch) | | *** ## Disclaimer This document is for informational purposes only and does not constitute investment, legal, tax, or accounting advice. UZR involves collateralized borrowing with material liquidation risk, including the possibility of partial or total loss of deposited collateral. The fixed 1:1 oracle is a deliberate design choice that creates divergence from secondary market pricing. Leverage amplifies both gains and losses. The protocol operates on novel smart contract infrastructure; users should review all audit reports and risk disclosures before participating. Eligibility and availability may be restricted by jurisdiction. # USD0a > **Type:** Factsheet | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary USD0a is a market-neutral, value-accruing USD savings instrument issued by the Usual DAO. It generates yield through a CME-listed dated futures basis carry strategy (long spot BTC/ETH, short CME dated forward contracts), combined with a US Treasury Bill allocation serving as a liquidity buffer. USD0a is non-rebasing: all yield accrues through an increasing on-chain exchange rate. It is fully permissionless, with no KYC/KYB requirements. USD0a does not take directional cryptocurrency exposure. Yield is driven by the structural convergence of dated futures prices toward spot at maturity, a mechanism distinct from and generally more predictable than perpetual funding rates. *** ## Key Facts | Parameter | Detail | | --------------------- | -------------------------------------------------------------------------------------- | | **Token** | USD0a | | **Type** | Non-rebasing, exchange-rate-accrual ERC-20 | | **Issuer** | Usual DAO | | **Chain** | Ethereum Mainnet | | **Peg** | Accruing (exchange rate only increases over time) | | **Collateral** | 90% USCC (Superstate crypto carry fund) / 10% USTB + USDC (T-Bills + cash equivalents) | | **Yield source** | CME BTC/ETH dated futures basis carry + T-Bill yield | | **Access** | Permissionless (no KYC/KYB) | | **Minting input** | USDC or USD0 | | **Redemption output** | USDC (at current exchange rate) | | **Redemption cycle** | Up to 7 days; \~10% instant liquidity buffer for smaller redemptions | | **Performance fee** | 0% (introductory, to bootstrap TVL) | | **Redemption fee** | 5 bps (standard) / 30 bps (instant) | *** ## Investment Strategy USD0a allocates funds into a 90/10 split between a long/short basis strategy and T-Bills/cash equivalents. The basis strategy takes the maturity spread between CME-listed forward contracts and the spot price of Bitcoin (BTC) and Ethereum (ETH). This spread reflects market expectations that future prices will exceed current prices. As expectations become more bullish, the spread widens, generating a larger carry opportunity. At contract maturity, spot and futures prices converge, and the holder captures the spread. The 10% allocation to USTB and USDC provides a standing liquidity buffer ensuring that redemptions can be serviced without forcing early unwinds of carry positions during periods of unrealized loss. *** ## Collateral Detail ### USCC (90% allocation) | Parameter | Detail | | ----------------------------- | -------------------------------------------------------------------------------------------------------------- | | **Manager** | Superstate | | **Strategy** | Bitcoin and Ether basis trades (long spot, short CME dated futures); may use Ethereum staking on spot holdings | | **Custody** | Anchorage Digital Bank, N.A. | | **Subscriptions/Redemptions** | Each market day, in USD or USDC | | **Management fee** | 0.75% | **Historical performance (USCC):** | Metric | Up Days | Down Days | | ------------------ | ----------------------- | ----------------------- | | Number of days | 305 | 2 | | Average return | +1.82 bps | -1.3 bps | | Largest daily move | +5.87 bps (30 Jul 2024) | -1.47 bps (12 Jul 2024) | **Drawdown profile:** * Highest 90-day drawdown: 0.48% (21-25 Jul, recovered in 4 days) * Longest drawdown: 15 days (26 Feb - 13 Mar 2025), peak drawdown 0.31% * Average drawdown: \~0.09% ### USTB (10% allocation) | Parameter | Detail | | ------------------ | ----------------------------------------------------------- | | **Manager** | Superstate | | **Holdings** | Short-duration US Treasury Bills | | **Custody** | UMB Bank, N.A.; USDC facilitation via Circle | | **Liquidity** | Daily, with continuous NAV/S (second-by-second price curve) | | **Management fee** | 0.15% | *** ## Simulated Performance Performance simulation for USD0a (7 Jul 2024 to 9 Oct 2025): | Period | USD0a Return | | -------- | ------------ | | 1 Month | 2.26% | | 3 Months | 3.40% | | 6 Months | 5.35% | | YTD | 7.39% | | 1 Year | 9.56% | *Past simulated performance is not indicative of future results.* *** ## Product Mechanics ### Minting 1. User sends USDC (or USD0) to the USD0a smart contract. 2. The contract mints USTB using that USDC. 3. USD0a tokens are minted at the current exchange rate and sent to the user. 4. The treasury management team allocates to USCC per the investment mandate. ### Value Accrual Yield accrues passively as the underlying NAV increases. All gains are reflected through a rising on-chain exchange rate. No manual claiming or compounding is required. Formula: `exchangeRate(t) >= 1` -- the exchange rate only increases over time. ### Redemption 1. User sends USD0a to the smart contract and initiates a redemption request. 2. If the requested amount exceeds the 7-day redemption target, a 7-day cool-down period applies. 3. Cash equivalents are used first to service redemption requests. 4. Redemption value: `1 USD0a = USD0 x exchangeRate(t)`, redeemable for USDC. *** ## Liquidity Management The USD0a collateral maintains a 10% liquidity buffer invested in USTB and cash equivalents at all times. This buffer ensures that redemptions do not force divestiture during periods of unrealized basis spread growth. USCC also retains 10-25% in internal cash equivalents. Basis spread growth should not affect fund NAV for longer than one week on average. The 7-day redemption queue provides sufficient time to create liquidity without generating losses under normal conditions. *** ## DeFi Composability | Integration | Description | | ----------------- | --------------------------------------------------------------------------------- | | **Pendle** | PT-USD0a listings with maturities set after predominant forward contract expiries | | **Morpho Vaults** | PT-backed lending markets for low-cost leverage | *** ## Fees | Fee Type | Amount | | -------------------------------- | ----------------- | | Performance fee (Usual) | 0% (introductory) | | Standard redemption fee | 5 bps | | Instant redemption fee | 30 bps | | USCC management fee (Superstate) | 0.75% | | USTB management fee (Superstate) | 0.15% | *** ## Smart Contract Addresses | Contract | Address | Chain | | ----------------- | -------------------------------------------- | -------- | | USD0a | `0x2e7fC02bE94BC7f0cD69DcAB572F64bcC173cd81` | Ethereum | | USD0a Multisig | `0x18AEf601B8D9a1B23fE8179E235d7e4EdfDf89f3` | Ethereum | | USD0 (underlying) | `0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5` | Ethereum | *** ## Key Risks | Risk Category | Description | Mitigation | | ---------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------- | | **Forward contract / basis dislocation** | Before maturity, if the basis spread widens after position entry, unrealized mark-to-market losses may occur. Basis can gap or widen under stress, creating impermanent losses that resorb at contract maturity. | Structural convergence at maturity; 7-day redemption period provides time for positions to mature. | | **Liquidity / forced unwind** | Large redemption waves can force early unwind or roll of the carry trade, crystallizing losses or forfeiting expected carry. | 10% USTB + USDC liquidity buffer; USCC retains 10-25% internal cash; 7-day cool-down for large redemptions. | | **Redemption timing** | Redemptions can take up to 7 days; only \~10% is available for instant liquidity. Exits may be delayed under stress. | Standing liquidity buffer; phased settlement. | | **Counterparty / execution chain** | Dependence on USCC, Anchorage Digital Bank, UMB Bank, Circle, and CME clearing/settlement infrastructure. Operational and counterparty failure modes exist across multiple entities. | Regulated custodians (Anchorage, UMB Bank); CME-listed instruments; Superstate as regulated fund manager. | | **Smart contract** | Potential vulnerabilities in exchange-rate accounting, redemption paths, or admin/upgrade/parameter changes. | Multiple Usual Protocol audits (Cantina, Sherlock, Spearbit, Halborn, Hexens, Paladin); upgradeable proxy patterns. | | **Regulatory** | Evolving regulatory landscape for digital assets and derivative-based products. | Underlying assets traded on CME (regulated exchange); USTB holds US Treasury securities. | *** ## Quick Links | Resource | URL | | ------------------------------ | -------------------------------------------------------------------------------------------------- | | USCC overview | | | USCC docs | | | USCC redemption timing | | | USTB docs | | | USTB continuous NAV/S | | | Superstate security/custodians | | | CME BTC futures | | | Usual docs (USD0a) | | *** ## Disclaimer This document is for informational purposes only and does not constitute investment, legal, tax, or accounting advice. Yields are variable and not guaranteed. USD0a's value can fluctuate in secondary markets. Collateral includes exposure to derivatives; losses can occur. Past performance, whether actual or simulated, is not indicative of future results. Eligibility and availability may be restricted by jurisdiction. Readers should review the latest fund and protocol documentation before making any investment decisions. # EUR0 > **Type:** Factsheet | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary **EUR0** is a euro-denominated stablecoin issued by **Usual DAO**, fully collateralized 1:1 by **short-duration European sovereign Treasury Bills** via **euTBL** (Spiko EU T-Bills Money Market Fund). EUR0 extends Usual's multi-currency infrastructure to the eurozone, applying the same collateral architecture, risk framework, and on-chain transparency established with USD0 to a EUR-pegged asset. Each EUR0 in circulation corresponds to EUR 1 of euTBL value at net asset value. EUR0 supports two primary market pathways: a **permissioned route** for eligible participants who deposit euTBL directly at par, and a **permissionless route** via EURC through the Swapper Engine. The permissioned path offers unlimited capacity for allowlisted addresses; the permissionless path provides retail and DeFi-native access subject to available liquidity buffers. EUR0 is deployed on **Ethereum** and is tradable on secondary markets. The protocol enforces a **zero-tolerance policy** on FX and credit risk for EUR0 collateral. All backing consists exclusively of EUR-denominated sovereign instruments with an average duration below 60 days and individual maturities under 6 months. EUR0 was launched in **October 2025** and has been audited by **Sherlock** (dedicated EUR0 protocol audit) with additional security coverage across the broader Usual audit program (20+ audits since May 2024). *** ## Key Facts | Parameter | Detail | | ------------------------- | --------------------------------------------------------------- | | **Token name** | EUR0 | | **Token standard** | ERC-20 | | **Peg** | 1 EUR0 = 1 EUR | | **Decimals** | 18 | | **Issuer** | Usual DAO (governance-owned) | | **Collateral** | 100% short-duration Eurozone sovereign T-Bills (euTBL by Spiko) | | **Collateral tokenizer** | Spiko (Twenty First Capital as ManCo; AMF-regulated) | | **Collateral depositary** | CACEIS Bank | | **Collateral auditor** | PricewaterhouseCoopers (PwC) | | **Chain** | Ethereum | | **Minting** | 1:1 against euTBL (permissioned) or EURC (permissionless) | | **Redemption** | 1:1 at par, on-chain | | **Launch date** | October 2025 | | **Governance** | 100% DAO-owned (UIP-15, Dec 2025) | *** ## Collateral Framework ### Reserve Asset: euTBL (Spiko) | Parameter | Detail | | ----------------------------------- | --------------------------------------------------------- | | **Fund name** | Spiko EU T-Bills Money Market Fund (euTBL) | | **Legal structure** | SPIKO SICAV (UCITS, France) | | **Classification** | Short-term VNAV money market fund (EU Reg. 2017/1131) | | **Investment universe** | Euro-area T-Bills, repos secured by those bills, and cash | | **Maximum maturity** | < 6 months | | **Weighted average maturity (WAM)** | ≤ 60 days | | **NAV publication** | Daily, on-chain via Chainlink and CACEIS | | **Management company** | Twenty First Capital (AMF GP-11000029) | | **Depositary / Administrator** | CACEIS Bank / CACEIS Fund Administration | | **Auditor** | PwC | | **Smart contract audit** | Trail of Bits | | **Token address (Ethereum)** | `0xa0769f7a8fc65e47de93797b4e21c073c117fc80` | | **ISIN** | FR001400ODL1 | | **Access control** | ERC-20 with allowlist/KYC management (Permission Manager) | ### Collateral Eligibility Criteria EUR0 follows the same due diligence framework as USD0, adapted to Eurozone assets: * **Fully collateralized (1:1):** No leverage, no fractional reserves. Every EUR0 is backed by euTBL at par value. * **Low risk:** Exposure limited to sovereign bonds from high-quality Eurozone issuers (France, Germany, etc.). * **Transparent:** On-chain verifiable via Chainlink price feeds; off-chain via PwC audits and daily NAV publication. * **Liquid:** Short maturity profile (< 6 months, WAM ≤ 60 days). * **Zero FX risk:** Collateral is entirely EUR-denominated. * **Zero credit risk (policy):** Holdings restricted to Eurozone sovereign debt; corporate debt is prohibited. *** ## Minting & Redemption ### 1. Permissioned Path (Direct): euTBL <> EUR0 For eligible participants with KYC/KYB access to Spiko's permissioned contracts: | Parameter | Detail | | -------------- | ---------------------------------------------------------- | | **Mint** | Deposit euTBL, receive EUR0 at par (EUR 1 euTBL = 1 EUR0) | | **Redeem** | Burn EUR0, receive euTBL at par minus 3 bps redemption fee | | **Capacity** | Unlimited for allowlisted addresses | | **Access** | KYC/KYB required (Spiko Permission Manager) | | **Settlement** | On-chain | ### 2. Permissionless Path (Indirect): EURC <> EUR0 via Swapper Engine | Parameter | Detail | | ---------------- | --------------------------------------------------------------------------------------- | | **Mechanism** | EURC → euTBL → EUR0, orchestrated by the Swapper Engine | | **Price** | 1 EUR0 = EUR 1 EURC | | **Latency** | T+0 (instant) if buffer liquidity is available; T+1 to T+5 if buffers/loopers are empty | | **Cancellation** | Orders cancellable until execution | | **Access** | Permissionless (no KYC required) | ### Secondary Market EUR0 is tradable on decentralized exchanges. Target liquidity pools include EUR0/EURe and EUR0/USD0. The EUR0/USD0 pool supports Usual's clearFX vision for on-chain EUR-to-USD conversion. **Note:** Usual Protocol does not guarantee secondary market liquidity or the EUR0 peg on secondary venues. Peg stability relies on arbitrage between primary market mint/redemption (at par) and secondary market pricing. *** ## Fees | Fee | Amount | Notes | | ----------------------------------- | --------------------- | ---------------------------------------------------------- | | **Mint via euTBL (permissioned)** | 0 bps | No protocol fee | | **Redeem to euTBL (permissioned)** | 3 bps | Governance-configurable | | **EURC path (permissionless)** | No protocol fee | Network gas and potential swap slippage/looper costs apply | | **euTBL fund-level management fee** | Max 0.30% (incl. VAT) | Baked into NAV; no entry/exit fee at fund level | | **Secondary markets** | Per venue | Trading fees per exchange | *** ## EUR0 vs. USD0 | Parameter | EUR0 | USD0 | | --------------------------- | ---------------------------------- | ------------------------------------ | | **Currency peg** | EUR 1.00 | USD 1.00 | | **Collateral** | Eurozone sovereign T-Bills (euTBL) | U.S. Treasury Bills (USYC, M, USTBL) | | **Primary tokenizer** | Spiko | Hashnote | | **Indirect mint asset** | EURC | USDC | | **Redemption fee (direct)** | 3 bps | Varies by governance | | **Regulatory framework** | EU-supervised (Spiko, AMF) | CIMA/CFTC (Hashnote) | | **NAV oracle** | Chainlink (daily) | On-chain real-time | | **Average duration** | < 60 days | < 0.33 years (\~120 days) | *** ## Smart Contract Addresses ### EUR0 Token | Chain | Address | | ------------ | -------------------------------------------- | | **Ethereum** | `0x3c89Cd1884E7beF73ca3ef08d2eF6EC338fD8E49` | ### Related Contracts (Ethereum) | Contract | Address | | -------------------------- | -------------------------------------------- | | **EUR0 ClassicalOracle** | `0x3b4b5CB9865A354d6c3faaDDD8753a2e55D60546` | | **Circle EURC/EUR Oracle** | `0x2A02fDaB11F05D5b16B16E01e140a8AF12A5F69B` | | **Eur0BackingPriceFeed** | `0xC471bd9bd650Ae9340594c55250D2529DE10E375` | | **HardOracle (EURe)** | `0xdB4CB3CB381e923b63705033c5c213cAca9f57b9` | | **euTBL (collateral)** | `0xa0769f7a8fc65e47de93797b4e21c073c117fc80` | *** ## Security & Audits EUR0 benefits from the broader Usual Protocol security program (20+ audits since May 2024), with the following EUR0-specific coverage: | Firm | Scope | Date | | ------------ | ------------------------------------------------------------------------------- | ------------- | | **Sherlock** | EUR0 protocol audit (minting, redemption, oracle, DaoCollateral, SwapperEngine) | October 2025 | | **Hexens** | sUSD0 and sEUR0 audit | November 2025 | | **Halborn** | RDM (Revenue Distribution Module) audit | November 2025 | Additionally, euTBL smart contracts (Spiko) have been audited by **Trail of Bits**. **Security contact:** *** ## Key Risks | Risk Category | Description | Mitigation | | ------------------------- | ------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | | **Sovereign credit risk** | Default or impairment of a Eurozone sovereign on its T-Bill obligations | Diversified across multiple Eurozone issuers (France, Germany, etc.); high credit ratings | | **Interest rate risk** | Rising rates reduce mark-to-market value of T-Bill holdings | Short average duration (WAM ≤ 60 days); well within Usual's portfolio duration threshold | | **Counterparty risk** | Failure of Spiko, CACEIS, or other service providers | Spiko is AMF-regulated; PwC audited; assets ring-fenced against Spiko bankruptcy | | **Liquidity risk** | Swapper Engine queues under heavy demand (T+1 to T+5) | Short-term VNAV structure; Spiko redemption infrastructure; secondary market alternatives | | **Secondary market risk** | EUR0 peg may deviate from EUR 1 on DEXs | Arbitrage between primary market (at par) and secondary market pricing | | **Smart contract risk** | Vulnerability in EUR0 or Swapper Engine contracts | Dedicated Sherlock audit; 20+ protocol-wide audits; upgradeable proxy architecture | | **Oracle risk** | Incorrect NAV or price feed | Chainlink oracle with daily CACEIS NAV; EUR0 ClassicalOracle aggregation | | **Regulatory risk** | Evolving EU regulatory landscape for tokenized securities and stablecoins | UCITS-compliant collateral; AMF-supervised tokenizer; KYC/KYB on permissioned path | *** ## Quick Links * EUR0 Product Documentation: * euTBL Prospectus (EN): * euTBL KID (EN): * Twenty First Capital Fund Page: * Spiko Tech Blog: * euTBL on Etherscan: * euTBL on RWA.xyz: * Usual Protocol Documentation: * Security & Audits: * Etherscan (EUR0): *** ## Disclaimer This factsheet is provided for **informational purposes only** and does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy any security or financial instrument. EUR0 is a decentralized protocol token governed by Usual DAO; participation involves risks including but not limited to smart contract risk, collateral risk, regulatory risk, and market risk. EUR0 relies on euTBL as its reserve asset and on smart contract infrastructure (Swapper Engine, DaoCollateral, Permission Manager). Access to the euTBL path requires KYC/KYB and allowlisting. Past performance and historical data are not indicative of future results. Investors should conduct their own due diligence and consult professional advisors before acquiring or interacting with EUR0. All smart contract addresses should be independently verified on the respective block explorers. Protocol parameters are subject to change through DAO governance. # sEUR0 > **Type:** Factsheet | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary **sEUR0** is the savings token for **EUR0**, Usual Protocol's euro-denominated stablecoin. Built on the **ERC-4626 tokenized vault standard**, sEUR0 converts EUR0 from a settlement asset into a yield-accruing savings instrument. Users deposit EUR0 into a permissionless vault and receive sEUR0 in return. Yield accrues through an **exchange rate** that appreciates over time, so redeeming sEUR0 returns more EUR0 than initially deposited. Balances do not rebase. Yield is sourced from the protocol's underlying collateral stack -- primarily **European sovereign T-Bills and short-term money market funds** (euTBL by Spiko) -- and is distributed via the vault's exchange-rate appreciation mechanism. The distribution rate is **governance-set**, **variable**, and may be adjusted with market conditions. Yield is a cash-back of protocol revenues funded by EUR0 collateral returns; it is not guaranteed. sEUR0 mirrors the design of **sUSD0** (Savings USD0), applying the same ERC-4626 vault pattern to the euro-denominated product. This consistent architecture across currencies simplifies DeFi integrations and provides a familiar savings experience regardless of denomination. sEUR0 was launched in **November 2025** and has been audited by **Hexens**. *** ## Key Facts | Parameter | Detail | | --------------------- | --------------------------------------------------------------------------- | | **Token name** | sEUR0 | | **Token standard** | ERC-4626 (non-rebasing, accrual-based) | | **Underlying asset** | EUR0 (euro stablecoin, backed 1:1 by euTBL) | | **Yield source** | European sovereign T-Bills and short-term MMFs (via EUR0 collateral) | | **Yield mechanism** | Exchange-rate appreciation (no rebase, no manual claiming) | | **Redemption** | 1 sEUR0 = EUR0 x exchangeRate (where exchangeRate >= 1) | | **Access** | Permissionless (no KYC/KYB requirement at vault level) | | **Distribution rate** | Governance-set, variable | | **Chain** | Ethereum | | **Launch date** | November 2025 | | **Governance** | 100% DAO-owned (UIP-15, Dec 2025); vault parameters controlled by Usual DAO | *** ## How sEUR0 Works ### Deposit and Withdrawal 1. **Deposit:** Submit EUR0 to the ERC-4626 vault. Receive sEUR0 representing the user's share of the vault's total EUR0-denominated assets. 2. **Accrue:** Yield accrues passively as the sEUR0/EUR0 exchange rate increases over time. No manual claiming or interaction is required. 3. **Redeem:** Burn sEUR0 at any time. Receive EUR0 equal to principal plus accrued yield (sEUR0 quantity x current exchange rate). ### Yield Mechanics Yield to sEUR0 holders is a **cash-back in EUR0** funded by **protocol revenues** sourced from EUR0 collateral (euTBL). The exchange rate is set and updated by governance: * **Not guaranteed:** Yield varies with available revenues and DAO policy decisions. * **No claims needed:** Accrual is implicit via the exchange rate. * **May be boosted at launch:** Governance may temporarily adjust distribution speed. *** ## EUR0 vs. sEUR0 | Parameter | EUR0 | sEUR0 | | ------------- | ------------------------------------------ | ---------------------------------- | | **Purpose** | Settlement asset | Savings instrument | | **Value** | Pegged 1:1 to the euro | Grows via exchange rate | | **Access** | Mint/redeem (direct or via Swapper Engine) | Wrap/unwrap via vault | | **Use cases** | Payments, collateral, trading | Yield generation, DeFi integration | | **Design** | Rebase-free stablecoin | ERC-4626 wrapper (non-rebasing) | *** ## Collateral & Risk Management (Inherited from EUR0) sEUR0 wraps EUR0; it does not interact directly with the euTBL register. The backing flows operate via EUR0. ### EUR0 Collateral Profile | Parameter | Detail | | ---------------------- | ------------------------------------------ | | **Reserve asset** | euTBL (Spiko EU T-Bills Money Market Fund) | | **Fund structure** | Short-term VNAV money market fund (UCITS) | | **Underlying** | Euro-area T-Bills, repos, cash | | **Maximum maturity** | < 6 months | | **WAM** | ≤ 60 days | | **Management company** | Twenty First Capital (AMF GP-11000029) | | **Depositary** | CACEIS Bank | | **Auditor** | PwC | | **NAV oracle** | Chainlink (daily) | ### Risk Parameters (EUR0 Layer) * **Interest rate risk:** Managed via short-duration instruments and strict portfolio duration limits. * **FX risk:** Zero tolerance -- only EUR-denominated assets accepted. * **Credit risk:** Zero tolerance -- restricted to sovereign and quasi-sovereign instruments; corporate debt prohibited. * **Liquidity risk:** Limited to assets redeemable within established timeframes with minimal slippage. Collateral selection and risk parameters are governed by the Usual DAO. *** ## Fees | Fee | Amount | Notes | | ----------------------------- | --------------------- | ---------------------------------- | | **sEUR0 vault entry (wrap)** | 0 bps | No entry fee | | **sEUR0 vault exit (unwrap)** | Up to 3 bps | Governance-configurable redeem fee | | **EUR0 mint via euTBL** | 0 bps | No protocol fee | | **EUR0 redeem to euTBL** | 3 bps | At EUR0 stablecoin level | | **EURC path** | No protocol fee | Network gas and swap costs apply | | **euTBL management fee** | Max 0.30% (incl. VAT) | Baked into NAV | *** ## DeFi Integrations sEUR0 implements the **ERC-4626 standard**, providing broad compatibility with: * Money markets and lending protocols * Yield routers and aggregators * Structured products (e.g., Pendle PT/YT integration) * LP positions without balance-tracking complexity (non-rebasing) **Target secondary pools:** sEUR0/EUR0, EUR0/EURe, EUR0/USD0 (on-chain FX). *** ## Smart Contract Addresses ### sEUR0 and EUR0 Tokens | Token | Chain | Address | | --------- | -------- | -------------------------------------------- | | **sEUR0** | Ethereum | `0x35f43C6604B0DE814ABAa2D94C878BD1F5165478` | | **EUR0** | Ethereum | `0x3c89Cd1884E7beF73ca3ef08d2eF6EC338fD8E49` | ### Related Contracts (Ethereum) | Contract | Address | | -------------------------- | -------------------------------------------- | | **EUR0 ClassicalOracle** | `0x3b4b5CB9865A354d6c3faaDDD8753a2e55D60546` | | **Circle EURC/EUR Oracle** | `0x2A02fDaB11F05D5b16B16E01e140a8AF12A5F69B` | | **Eur0BackingPriceFeed** | `0xC471bd9bd650Ae9340594c55250D2529DE10E375` | | **euTBL (collateral)** | `0xa0769f7a8fc65e47de93797b4e21c073c117fc80` | *** ## Security & Audits sEUR0 benefits from the broader Usual Protocol security program (20+ audits since May 2024), with the following direct coverage: | Firm | Scope | Date | | ------------ | ------------------------------------------- | ------------- | | **Hexens** | sUSD0 and sEUR0 audit | November 2025 | | **Sherlock** | EUR0 protocol audit (underlying stablecoin) | October 2025 | **Security contact:** *** ## Key Risks | Risk Category | Description | Mitigation | | ------------------------------ | ---------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | | **Yield variability** | sEUR0 yield is not guaranteed; distribution rate is governance-set and depends on protocol revenues | Transparent governance; revenue sourced from sovereign T-Bill collateral | | **Interest rate risk (euTBL)** | Short-term MMF NAV can move modestly with rate changes | Short-duration instruments (WAM ≤ 60 days); within Usual's portfolio duration threshold | | **Liquidity risk** | Swapper Engine may queue EUR0 orders when buffers are empty (T+1 to T+5) | Short-term VNAV structure; Spiko redemption infrastructure; secondary market alternatives | | **Smart contract risk** | Vulnerability in sEUR0 vault or EUR0 contracts | Hexens audit; Sherlock EUR0 audit; upgradeable proxy architecture; 20+ protocol-wide audits | | **Oracle risk** | Incorrect NAV or exchange rate data | Chainlink oracle with daily CACEIS NAV; EUR0 ClassicalOracle aggregation | | **Secondary market risk** | sEUR0 and EUR0 may trade off-par on secondary venues | Arbitrage between primary market (at par) and secondary market pricing | | **Regulatory risk** | EUR-denominated yield distribution integrated with a UCITS product entails regulatory considerations | UCITS-compliant collateral; AMF-supervised tokenizer; KYC/KYB on euTBL path | *** ## Quick Links * sEUR0 Product Documentation: * EUR0 Product Documentation: * Spiko Documentation: * Usual Technical Documentation: * Usual Protocol Documentation: * Security & Audits: * Etherscan (sEUR0): * Etherscan (EUR0): *** ## Disclaimer This factsheet is provided for **informational purposes only** and does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy any security or financial instrument. **Yield is variable and not guaranteed.** sEUR0 is a decentralized protocol token governed by Usual DAO; participation involves risks including but not limited to smart contract risk, collateral risk, regulatory risk, and market risk. The euTBL-to-EUR0 path is permissioned (KYC/KYB required). Past performance and historical data are not indicative of future results. Investors should conduct their own due diligence and consult professional advisors before acquiring or interacting with sEUR0. All smart contract addresses should be independently verified on the respective block explorers. Protocol parameters, including yield distribution rates, are subject to change through DAO governance. # ETH0 > **Type:** Factsheet | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary **ETH0** is an Ethereum-pegged synthetic asset issued by **Usual DAO**, fully collateralized 1:1 by **Lido's wrapped staked ETH (wstETH)**. Each ETH0 in circulation is backed by at least 1 ETH worth of wstETH held in the protocol's on-chain Collateral Treasury. ETH0 is designed to track the value of ETH while providing holders with access to **USUAL token emissions** on top of the native ETH staking yield embedded in wstETH. Unlike USD0 and EUR0, which are fiat-pegged stablecoins backed by Treasury Bills, ETH0 is an **ETH-denominated synthetic** with full crypto-market exposure. Holding ETH0 is economically equivalent to holding ETH: the token appreciates and depreciates in USD terms with the ETH price. The staking rewards generated by the underlying wstETH collateral (approximately 3.0--3.5% APR) are captured by the protocol and redistributed as USUAL governance tokens, providing an additional yield layer. ETH0 uses the same on-chain collateral infrastructure established for USD0, including permissionless minting/redemption, oracle-based circuit breakers, and DAO governance over collateral parameters. ETH0 was approved via **UIP-8** (June 9, 2025; 94.7% For) and launched in **June 2025**. It has been audited by **Hexens** and **Spearbit**, with additional coverage across the broader Usual audit program (20+ audits since May 2024). *** ## Key Facts | Parameter | Detail | | ------------------------ | ---------------------------------------------------------------- | | **Token name** | ETH0 | | **Token standard** | ERC-20 | | **Peg** | 1 ETH0 = 1 ETH (in ETH terms) | | **Asset type** | ETH-denominated synthetic | | **Decimals** | 18 | | **Issuer** | Usual DAO (governance-owned) | | **Collateral** | 100% Lido wstETH (wrapped staked Ether) | | **Native staking yield** | \~3.0--3.5% APR (ETH consensus-layer rewards, accrued in wstETH) | | **Additional yield** | USUAL token emissions to ETH0 holders | | **Chain** | Ethereum | | **Minting** | Permissionless; 1:1 deposit of wstETH | | **Redemption** | 1:1 withdrawal of wstETH, on-chain, at any time | | **Redemption fee** | 5 bps (governance-configurable) | | **Launch date** | May 2025 | | **Governance approval** | UIP-8 (June 9, 2025; 94.7% For) | | **Governance** | 100% DAO-owned (UIP-15, Dec 2025) | *** ## Collateral Framework ### Collateral Asset: wstETH (Lido) | Parameter | Detail | | -------------- | ---------------------------------------------------------------------------------------------- | | **Asset** | wstETH (wrapped staked Ether) | | **Provider** | Lido Finance | | **Underlying** | ETH staked on Ethereum's Beacon Chain via Lido | | **Token type** | Non-rebasing; value appreciates as staking rewards accrue (wstETH/ETH exchange rate increases) | | **TVL (Lido)** | >$22 billion (at time of UIP-8 approval) | | **Liquidity** | Among the most liquid staking derivatives; redeemable for ETH via Lido withdrawals | ### Collateral Properties * **Fully collateralized (1:1):** No leverage, no fractional reserves. Every ETH0 is backed by at least 1 ETH worth of wstETH. * **Transparent:** Anyone can verify the wstETH balance held by ETH0-related contracts on-chain at any time. * **Ethereum-native:** Collateral resides entirely on Ethereum's Beacon Chain (via Lido). No traditional finance counterparty, no bank custody, no fund administrator, no tokenizer bankruptcy risk. * **Liquid:** wstETH is deeply liquid on major DEXs and redeemable for ETH via Lido withdrawals. ### Collateral Eligibility within the Usual Framework While USD0 and EUR0 collateral is constrained by portfolio duration, FX risk, and credit risk parameters suited to fiat-backed designs, ETH0 follows a **crypto-native framework** adapted for ETH-denominated collateral while maintaining the same overarching principles of full collateralization, low risk, transparency, and liquidity. *** ## Minting & Redemption ### Primary Market | Operation | Detail | | ------------------ | --------------------------------------------------------------------------------------------------------- | | **Mint** | Deposit wstETH to the DaoCollateral contract. For each 1 ETH worth of wstETH deposited, 1 ETH0 is minted. | | **Redeem** | Return ETH0 to the protocol. ETH0 is burned, and the equivalent wstETH is released. | | **Mint fee** | 0 bps (no fee) | | **Redemption fee** | 5 bps (protects treasury from oracle update exploits) | | **Access** | Permissionless (no KYC/KYB required) | | **Settlement** | Immediate (on-chain) | ### Secondary Market ETH0 is tradable on decentralized exchanges. Target liquidity pools include ETH0/wstETH and ETH0/ETH. Even if secondary market liquidity is limited, holders can always redeem ETH0 on-chain for the underlying wstETH at 1:1 (less redemption fee). *** ## Yield Structure ETH0 provides two sources of value to holders: ### 1. Native Staking Yield (wstETH) The wstETH collateral continuously accrues Ethereum consensus-layer rewards at approximately 3.0--3.5% APR. This yield is captured by the protocol as wstETH appreciates in ETH terms. ### 2. USUAL Token Emissions ETH0 holders receive USUAL governance token distributions. The daily USUAL emission for locked assets is split proportionally between bUSD0 and ETH0 based on the dollar value of each asset. This provides an additional yield layer on top of the native staking return. Revenue from wstETH staking yield is distributed to USUALx holders through the protocol's existing revenue-sharing model, alongside revenue from USD0's T-Bill interest. *** ## Fees | Fee | Amount | Notes | | --------------------- | --------- | ---------------------------------------------------------------- | | **Minting** | 0 bps | No protocol fee | | **Redemption** | 5 bps | Governance-configurable; protects against oracle update exploits | | **Secondary markets** | Per venue | Trading fees per exchange | *** ## Smart Contract Addresses ### ETH0 Token | Chain | Address | | ------------ | -------------------------------------------- | | **Ethereum** | `0x734eec7930bc84ec5732022b9eb949a81fb89abe` | ### Related Contracts (Ethereum) | Contract | Address | | ------------------------ | -------------------------------------------- | | **ETH0 ClassicalOracle** | `0x8a03c57069A25C7E6e62e9C0d03a2CC10A74b1a7` | | **Lido wstETH Oracle** | `0xEB9B65345B1eeD32153Ef85D97874c1aD98e5DC4` | | **DaoCollateral** | `0xde6e1F680C4816446C8D515989E2358636A38b04` | | **Distribution** | `0x75cC0C0DDD2Ccafe6EC415bE686267588011E36A` | | **Collateral Treasury** | `0xdd82875f0840AAD58a455A70B88eEd9F59ceC7c7` | *** ## Security & Audits ETH0 benefits from the broader Usual Protocol security program (20+ audits since May 2024), with the following ETH0-specific coverage: | Firm | Scope | Date | | ------------ | --------------------- | -------- | | **Hexens** | ETH0 audit | May 2025 | | **Spearbit** | ETH0 and Zapper audit | May 2025 | ETH0 reuses audited infrastructure from the USD0 protocol, which has undergone extensive review by Cantina, Sherlock, Halborn, and others. **Security contact:** *** ## Key Risks | Risk Category | Description | Mitigation | | ------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | **ETH market price** | ETH0 tracks ETH; holding ETH0 exposes holders to full ETH price volatility in fiat terms. A 20% ETH decline results in a \~20% decline in ETH0 USD value. | By design. ETH0 is not a fiat stablecoin. Users seeking to minimize ETH price volatility should consider USD0 or EUR0. | | **Lido / slashing risk** | A major slashing event, validator performance issues, or smart contract vulnerability in Lido could impair wstETH and therefore ETH0 collateral. | Chainlink oracle-based circuit breaker can automatically pause minting/redemption on anomaly detection. Full 1:1 collateralization. Insurance fund (DAO-configurable). Counter Bank Run (CBR) mechanism. | | **Smart contract risk** | Vulnerability in ETH0, DaoCollateral, or Lido contracts. | Hexens and Spearbit ETH0-specific audits. 20+ protocol-wide audits. Emergency pause/unpause mechanisms. Single-collateral design reduces attack surface. | | **Liquidity risk** | As a newer asset, ETH0 may have limited secondary market liquidity. | Direct on-chain redemption for wstETH at 1:1 (less fee) provides a liquidity backstop independent of secondary markets. USUAL-incentivized liquidity pools. | | **Oracle risk** | Incorrect wstETH price feed could affect minting/redemption pricing. | Dual oracle system (ETH0 ClassicalOracle + Lido wstETH Oracle). Circuit breaker on anomalous readings. | | **Counterparty risk** | Dependency on Lido for staking operations. | No traditional finance counterparty exposure (no bank, custodian, or tokenizer risk). Lido is the largest liquid staking protocol on Ethereum with extensive audit coverage and long operating track record. | | **Governance risk** | DAO decisions that adversely affect ETH0 parameters. | On-chain voting via UIPs; transparent proposal process; multi-signature execution. | *** ## Quick Links * ETH0 Product Documentation: * ETH0 Collateral and Risk: * UIP-8 (wstETH Onboarding): * Usual Protocol Documentation: * Security & Audits: * Etherscan (ETH0): * Lido Finance: *** ## Disclaimer This factsheet is provided for **informational purposes only** and does not constitute investment advice, an offer to sell, or a solicitation of an offer to buy any security or financial instrument. ETH0 is a decentralized protocol token governed by Usual DAO; participation involves risks including but not limited to smart contract risk, collateral risk, market risk (full ETH price exposure), and Lido staking risk. ETH0 is not a stablecoin and will fluctuate in fiat-denominated value. Past performance and historical data are not indicative of future results. Investors should conduct their own due diligence and consult professional advisors before acquiring or interacting with ETH0. All smart contract addresses should be independently verified on the respective block explorers. Protocol parameters are subject to change through DAO governance. # Vaults > **Type:** Factsheet | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary Usual Vaults are curated, managed yield strategies that allow bUSD0 holders to gain exposure to external DeFi yield opportunities while retaining bUSD0's underlying USUAL coupon rewards. Built on Lagoon Finance infrastructure, each Vault is managed by a curator responsible for strategy selection, epoch-based settlement, and fair valuation via oracle pricing. Vaults generate two revenue streams: bUSD0's native USUAL daily coupons plus external strategy returns. The DAO captures a baseline return (management fee up to a reference rate) and charges a performance fee on excess yield. Vaults extend bUSD0 composability into a managed, institutional-grade experience. *** ## Key Facts | Parameter | Detail | | ---------------------- | --------------------------------------------------------- | | Product type | Managed DeFi yield vaults | | Deposit asset | bUSD0 (converted 1:1 to USD0 on deposit) | | Infrastructure | Lagoon Finance managed vault framework | | Settlement | Epoch-based (curator-managed) | | Valuation | Oracle-priced fair valuation per epoch | | Entry/exit fee | None (standard deposit/withdrawal) | | Performance fee | 20% on returns above the reference rate | | Management fee | DAO retains yield up to the reference rate (e.g., 4% APR) | | USUAL coupon retention | Yes -- bUSD0 USUAL daily coupons continue accruing | | Maturity redemption | 1:1 via bUSD0 redemption at exit (June 2028 maturity) | *** ## Architecture ### Deposit Flow (Epoch-Based) 1. **Epoch initialization:** The first epoch begins at contract initialization. 2. **Deposit request:** Users submit a deposit request (e.g., 300 bUSD0) and transfer assets into a secure silo. bUSD0 is converted 1:1 into USD0 for deployment. 3. **Settlement:** The curator calls `settleDeposit`, which secures the deposited tokens and mints Vault shares at a fair valuation based on current oracle pricing. 4. **Optional cancellation (pre-settlement):** Before settlement, users can cancel the deposit request and recover their tokens from the silo. ### Withdrawal Flow (Epoch-Based) 1. **Withdrawal request:** Users submit a redemption request and place their Vault shares into a silo. 2. **Epoch transition:** The curator updates total assets, closing the current epoch and opening the next. 3. **Redemption settlement:** The curator executes `settleRedeem`, which burns Vault shares and transfers the equivalent bUSD0 plus accrued interest back into the Vault for user claiming. 4. **Claiming funds:** Users call `redeem` to transfer the redeemed assets to their wallet. *** ## Fee Structure | Fee Type | Description | Rate | | --------------- | ------------------------------------------- | ----------------------------- | | Management fee | DAO retains yield up to the reference rate | Reference rate (e.g., 4% APR) | | Performance fee | Charged on returns above the reference rate | 20% | | Entry fee | None | 0% | | Exit fee | None | 0% | The fee structure ensures the DAO captures a baseline return on Vault capital (supporting the insurance fund and treasury operations), while users benefit from outperformance above the reference rate. *** ## Available Vaults ### ustUSR++ Vault | Parameter | Detail | | --------------- | --------------------------------------- | | Strategy | stUSR (Resolv's staked USR token) | | Yield source | Delta-neutral cash-and-carry strategies | | Settlement | T+1 for RWA-related components | | Performance fee | 20% on yields above the reference rate | | Curator | Lagoon Finance curator | Additional vaults (Superstate, Syrup, Sky) are under development and will be documented upon launch. *** ## Dual-Yield Structure Vault participants receive two concurrent yield streams: | Yield Stream | Source | Notes | | ------------------------- | --------------------------------------------------------------------------- | ------------------------------------------------------------- | | bUSD0 USUAL daily coupons | bTOKEN bucket allocation (130,000 USUAL/day shared across all bUSD0 + ETH0) | Continues accruing while deposited in Vault | | External strategy returns | Vault-specific DeFi strategy (e.g., stUSR delta-neutral carry) | Subject to 20% performance fee on excess above reference rate | *** ## Holding bUSD0 vs. Depositing into a Vault | Feature | Hold bUSD0 Directly | Deposit into Vault | | ----------------------------------- | ---------------------------------- | ----------------------------------- | | USUAL daily coupons | Yes | Yes | | External strategy yield | No | Yes | | Smart contract risk | bUSD0 contract only | bUSD0 + Lagoon + strategy contracts | | Liquidity | Immediate (secondary market) | Epoch-based withdrawal | | DeFi composability | Full (Pendle, Morpho, Curve, etc.) | Limited to the Vault position | | 1:1 maturity redemption (June 2028) | Guaranteed | Via bUSD0 redemption at exit | *** ## Smart Contract Addresses Vault contracts are deployed via Lagoon Finance infrastructure. Specific contract addresses are published on the Usual Protocol documentation at deployment time. No centralized registry of Vault addresses is maintained in this factsheet due to the modular, curator-managed deployment model. *** ## Key Risks | Risk Category | Description | Mitigation | | ------------------- | ----------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | | Smart contract risk | Exposure to Lagoon vault infrastructure and underlying strategy protocol contracts introduces additional attack surface | Usual Protocol has undergone 20+ audits by leading firms; Lagoon Finance contracts are independently audited | | Strategy risk | External strategies (e.g., stUSR) face market risks such as negative perpetual funding rates or adverse basis movements | Curator selects proven, audited strategies; diversification across strategy types | | Counterparty risk | Exposure to external trading platforms and custodians (e.g., exchange insolvency) | Use of institutional-grade counterparties; multi-layered counterparty risk framework informs strategy selection | | Liquidity risk | Epoch-based settlement can delay withdrawals relative to direct bUSD0 holdings | Deposits can be canceled before settlement; epoch durations are kept short | | Curator risk | Vault performance depends on curator strategy selection and execution quality | Curators are vetted; DAO governance can adjust parameters and curator appointments | | Opportunity cost | bUSD0 deposited in Vaults cannot be simultaneously used in other DeFi protocols (Pendle, Morpho, Curve) | Users should assess composability trade-off against expected Vault yield | *** ## Quick Links * Documentation: * Lagoon Finance: * Technical documentation: * Security contact: *** ## Disclaimer This factsheet is provided for informational purposes only and does not constitute financial, legal, or investment advice. All data is sourced from publicly available protocol documentation and governance records as of the date indicated above. Vault strategies, fees, reference rates, and available Vaults are subject to change through DAO governance and curator decisions. Past performance and historical data do not guarantee future results. Vault strategies introduce risk exposures beyond the conservative collateral profile of USD0's underlying T-Bill backing, which maintains zero tolerance for credit and FX risk and limits duration to under 0.33 years. Prospective participants should conduct independent due diligence and seek professional counsel before engaging with the protocol or depositing into Vaults. # USUAL > **Type:** Factsheet | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary USUAL is the governance and ownership token of the Usual Protocol. It represents ownership of 100% of protocol revenue generated from US Treasury Bill collateral backing USD0. The token follows a disinflationary emission model with a maximum supply of 3 billion tokens (revised from 4 billion via UIP-11, November 2025). Fixed daily emissions of approximately 1.35 million USUAL are distributed across governance-defined buckets. Revenue is split 30% to locked USUALx holders (weekly USD0 distributions) and 70% to the DAO treasury. Full supply distribution is projected by June 2028. *** ## Key Facts | Parameter | Detail | | ----------------------------------------- | ----------------------------------------------------- | | Token type | ERC-20 governance and ownership token | | Maximum supply | 3,000,000,000 USUAL (3B) | | Daily emissions | \~1,350,000 USUAL/day (fixed allocation, post-UIP-11) | | Circulating at Binance listing (Nov 2024) | \~494.6M (\~12.37% of total supply) | | Revenue ownership | 100% accrues to USUAL holders | | Revenue distribution | 30% to locked USUALx / 70% to DAO treasury | | Revenue Switch activation | January 13, 2025 | | Distribution end date | June 2028 | | Chains | Ethereum (primary), Arbitrum, Base | | Listing | Binance (November 19, 2024) | | Standard | ERC-20 | *** ## Emission Model ### Current Regime (Post-UIP-11, November 2025) UIP-11 replaced the original dynamic, TVL-linked emission model with fixed daily bucket allocations. Emissions no longer vary based on collateral yield, TVL growth, or protocol revenue. | Bucket | Daily USUAL | % Share | | ------------------------ | --------------- | ----------- | | bTOKEN (bUSD0 + ETH0) | 130,000 | 9.63% | | LP rewards | 69,953 | 5.18% | | USUALx (staking rewards) | 301,203 | 22.31% | | USUAL\* / Insiders | 301,203 | 22.31% | | Foundation (DAO) | 547,641 | 40.57% | | **Total** | **\~1,350,000** | **100.00%** | ### Supply Cap Revision (November 2025 Disinflation) | Metric | Original | Post-Disinflation | | ---------------------------------- | --------------------- | --------------------- | | Maximum supply | 4.0 billion | 3.0 billion | | Daily emissions | \~2,738,000 USUAL/day | \~1,350,000 USUAL/day | | Structural sell pressure reduction | -- | \~87.5% | | Projected end of distribution | \~November 2028 | June 2028 | *** ## Supply & Distribution ### Allocation | Category | Share | Notes | | --------------------------- | -------- | ----------------------------------------------------------- | | Community | \~69.75% | Liquidity providers, active users, partners, airdrop | | Insiders (team + investors) | \~30.25% | Post-USUAL\* conversion (UIP-13); vesting through June 2028 | ### Pre-TGE Distribution (November 25, 2024) | Category | Amount | | ------------------ | --------------------- | | Airdrop | 340,000,000 USUAL | | Binance Launchpool | 300,000,000 USUAL | | **Total pre-TGE** | **640,000,000 USUAL** | ### USUAL\* (STAR) Retirement USUAL\* was the original insider seigniorage token. In November 2025, it was retired and converted to USUAL at a 0.97:1 ratio. The conversion was funded from the Foundation bucket with no new tokens minted. USUAL\* became permanently soulbound (UIP-13) and will be deleted in June 2028. Remaining insider allocation vests monthly through June 2028. *** ## Revenue Model ### Revenue Sources | Source | Description | | ----------------------- | ------------------------------------------------------------------- | | T-Bill collateral yield | Primary source; yield from US Treasury Bills and repos backing USD0 | | Protocol fees | Minting, redeeming, and operational fees | | USUALx unstaking fees | 10% exit fee, split three ways | | Fira lending fees | 0.10% APR (10 bps), immutable protocol fee on the UZR market | ### Revenue Distribution ``` Protocol Revenue (T-Bill yield + fees + Fira lending fees) | 30% --> Locked USUALx holders (weekly, in USD0) 70% --> DAO treasury (compounding, buybacks, strategic deployment) ``` ### Current Revenue Scale | Metric | Value | | --------------------------------- | ----------------- | | Annual protocol revenue (current) | \~$5.5-6M/year | | Revenue to locked USUALx (30%) | \~$1.65-1.8M/year | | Revenue to DAO treasury (70%) | \~$3.85-4.2M/year | | Distribution frequency | Weekly (USD0) | Note: Pre-UIP-11 revenue was \~$25M/year. The DAO deliberately reduced USL/UZR interest rates to achieve an 87.5% reduction in structural selling pressure, accepting lower near-term revenue as a trade-off. ### Treasury Snapshot (September 2025) | Category | Share | Approximate Amount | | ----------------------- | -------- | ------------------ | | Stables and derivatives | 67.30% | \~$20.7M | | ETH exposure | 15.68% | \~$4.8M | | USUAL and USUALx | 10.67% | \~$3.3M | | Yield strategies | 5.97% | \~$1.8M | | Other | 0.38% | \~$0.1M | | **Total** | **100%** | **\~$30.75M** | *** ## Governance ### Ownership Structure (Post-UIP-15, December 2025) | Aspect | Current State | | ------------------ | ------------------------------------------------ | | Asset ownership | 100% DAO-owned (governed by USUAL token holders) | | IP ownership | Transfer to DAO planned before end of Q1 2026 | | Role of Usual Labs | Service provider (prestataire), mandated by DAO | | Treasury control | USUAL holders via governance | ### Governance Scope * Protocol parameter adjustments (fees, emission rates, collateral ratios) * Asset onboarding (new collateral types, integrations) * Treasury management (allocations, investments, operational spending) ### Key Governance Decisions | UIP | Date | Decision | | ------ | -------- | --------------------------------------------------------- | | UIP-9 | Oct 2025 | USUALx locking, buybacks, revenue alignment | | UIP-11 | Nov 2025 | Supply cut from 4B to 3B, daily emissions halved | | UIP-13 | Nov 2025 | USUAL\* made soulbound, insiders compensated \~209M USUAL | | UIP-15 | Dec 2025 | DAO owns 100% of assets, Labs = service provider | *** ## Smart Contract Addresses ### Ethereum | Contract | Address | | ------------------- | -------------------------------------------- | | USUAL | `0xC4441c2BE5d8fA8126822B9929CA0b81Ea0DE38E` | | Distribution | `0x75cC0C0DDD2Ccafe6EC415bE686267588011E36A` | | AirdropDistribution | `0x89e813661628a277714C76d80c7fcB192a0896Ed` | | AirdropTaxCollector | `0xA6cd248943F3d3415458b264e2C890FF422A4c01` | ### Arbitrum | Contract | Address | | -------- | -------------------------------------------- | | USUAL | `0x6A5D904519A2b605Da2D5DA7137ED5F4184F6513` | ### Base | Contract | Address | | -------- | -------------------------------------------- | | USUAL | `0x4ACD4D03af6F9cc0fB7C5f0868B7b6287D7969c5` | *** ## Key Risks | Risk Category | Description | Mitigation | | ------------------------ | ----------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | | Regulatory risk | Classification of governance tokens under evolving regulatory frameworks may impact tradability or tax treatment | DAO structure provides legal separation; Foundation operates under imperative mandates | | Revenue dependency | Protocol revenue is directly tied to US Treasury Bill yields, which are subject to Federal Reserve rate decisions | Revenue base diversified with protocol fees and Fira lending fees; insurance fund maintained | | Dilution risk | Ongoing daily emissions (\~1.35M USUAL/day) create supply expansion until June 2028 | Disinflationary design; USUALx stakers receive \~22.31% of daily emissions as anti-dilution mechanism; supply capped at 3B | | Governance concentration | Insiders hold \~30.25% of total supply post-STAR conversion | All insider tokens subject to monthly vesting through June 2028; STAR deleted June 2028; single-token governance model | | Liquidity risk | Secondary market liquidity may be insufficient relative to daily emissions | Listed on Binance; LP reward bucket maintained at 69,953 USUAL/day | | Smart contract risk | Token and distribution contracts exposed to potential vulnerabilities | 20+ audits by Cantina, Sherlock, Spearbit, Halborn, Hexens, Paladin, Blackthorne; OAK Security economic assessment | *** ## Quick Links * Documentation: * Technical documentation: * Governance (Snapshot): * Security contact: *** ## Disclaimer This factsheet is provided for informational purposes only and does not constitute financial, legal, or investment advice. All data is sourced from publicly available protocol documentation and governance records as of the date indicated above. Parameters, allocations, and revenue figures are subject to change through DAO governance. Past performance and historical data do not guarantee future results. Prospective participants should conduct independent due diligence and seek professional counsel before engaging with the protocol or acquiring tokens. # USUALx > **Type:** Factsheet | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary USUALx is the transferable ERC-20 token representing staked USUAL within the Usual Protocol. It serves as the gateway to two distinct yield layers: (1) USUAL staking emissions (\~22.31% of daily USUAL supply, \~301,203 USUAL/day), accessible to all USUALx holders without lock requirement; and (2) USD0 protocol revenue distributions via the Revenue Switch, accessible exclusively to USUALx holders who lock their position for 1, 3, 6, or 12 months. The USUALx-to-USUAL exchange rate appreciates over time as staking rewards accrue. USUALx also confers governance voting rights within the Usual DAO. *** ## Key Facts | Parameter | Detail | | ---------------------------------- | ---------------------------------------------------------------- | | Token type | ERC-20 (transferable staking receipt) | | Underlying asset | USUAL | | Staking emission share | \~22.31% of total daily emissions (\~301,203 USUAL/day) | | Lock requirement for basic staking | None | | Lock durations for Revenue Switch | 1, 3, 6, or 12 months | | Revenue distribution | Weekly, in USD0, to locked USUALx only | | Revenue share | 30% of protocol revenue | | Exchange rate | Appreciating (rewards auto-compound into rate) | | Unstaking fee | 10% (DAO-governed) | | Governance | Voting rights on protocol parameters, asset onboarding, treasury | | Chains | Ethereum | *** ## Staking Mechanism ### Deposit and Withdrawal 1. Deposit USUAL tokens into the staking contract. 2. Receive USUALx at the current exchange rate. 3. Hold USUALx to earn a share of the \~22.31% daily USUAL emission allocation. 4. Unstake at any time by redeeming USUALx for USUAL at the then-current (appreciated) exchange rate. ### Exchange Rate Appreciation The USUALx-to-USUAL exchange rate increases over time as staking rewards accrue. Each USUALx token becomes worth progressively more USUAL. Rewards are reflected automatically in the exchange rate and do not require manual claiming. ### Emission Allocation | Metric | Pre-UIP-11 | Post-UIP-11 (Current) | | ------------------------------ | --------------------- | --------------------- | | USUALx daily USUAL allocation | 301,203 USUAL/day | 301,203 USUAL/day | | Share of total daily emissions | 11.00% | 22.31% | | Total daily protocol emissions | \~2,738,000 USUAL/day | \~1,350,000 USUAL/day | The nominal USUALx allocation was preserved through the November 2025 disinflation. Because total emissions were halved, USUALx now captures a proportionally larger share of the supply. ### Unstaking Fee | Parameter | Detail | | ---------------------- | ---------------------------------------------------------------------------- | | Fee rate | 10% of USUALx being unstaked | | Distribution of fees | 1/3 to remaining USUALx stakers, 1/3 to USUAL\* holders, 1/3 to DAO treasury | | Fees collected in 2025 | \~$400,000 | *** ## Locking Module (Revenue Switch Access) ### Overview The Locking Module is the mechanism through which USUALx holders commit their staked position for fixed durations to access weekly USD0 revenue distributions via the Revenue Switch. **Critical distinction:** * **Unlocked USUALx** earns USUAL staking emissions (\~22.31% of daily supply). It does NOT receive USD0 revenue distributions. * **Locked USUALx** earns both USUAL staking emissions AND weekly USD0 revenue distributions via the Revenue Switch. ### Lock Durations and Revenue Boosts | Duration | Revenue Boost | | --------- | ------------- | | 1 month | Base level | | 3 months | Higher boost | | 6 months | Higher boost | | 12 months | Maximum boost | Longer lock durations provide higher duration-weighted shares of the weekly USD0 distribution. Revenue boosts affect revenue-share weighting only and do not change governance voting power or USUAL staking emission rates. ### Lock Properties * Locks are **immutable until expiration**. Tokens cannot be withdrawn early. * At maturity, locked tokens become fully liquid and can be withdrawn or re-locked. * Users can maintain **multiple lock positions simultaneously** with varying amounts and durations. * Each position is tracked independently with its own maturity date and boost level. *** ## Revenue Switch ### Activation and Mechanics | Parameter | Detail | | ------------------------------ | ---------------------------- | | Activation date | January 13, 2025 | | Distribution currency | USD0 | | Distribution frequency | Weekly | | Epoch schedule | Monday UTC+0 to Sunday UTC+0 | | Eligible recipients | Locked USUALx holders only | | Revenue share to locked USUALx | 30% of protocol revenue | | Revenue share to DAO treasury | 70% of protocol revenue | ### Epoch Eligibility Rules * **Full-epoch requirement:** Locked position must remain intact for the entire weekly epoch (Monday through Sunday UTC+0). * **Top-ups during an epoch:** Additional locks or increases made during an active epoch count toward the next epoch, not the current one. * **Withdrawals void the epoch:** Any withdrawal during an active epoch voids all reward eligibility for that epoch. * **Mid-epoch new locks:** Locks created mid-epoch begin earning revenue distributions starting the following epoch. ### Current Revenue Scale | Metric | Value | | -------------------------------- | ----------------- | | Total protocol revenue (current) | \~$5.5-6M/year | | Revenue to locked USUALx (30%) | \~$1.65-1.8M/year | | Distribution frequency | Weekly in USD0 | *** ## Dual-Yield Structure Locked USUALx positions receive two concurrent yield streams: | Yield Stream | Source | Eligibility | Payment | | -------------------------- | ------------------------------------------------------- | ---------------------------------------- | ------------------------------------------- | | USUAL staking emissions | \~22.31% of daily USUAL emissions (\~301,203 USUAL/day) | All USUALx holders (locked and unlocked) | Auto-accrued via exchange rate appreciation | | USD0 revenue distributions | 30% of protocol revenue via Revenue Switch | Locked USUALx only | Weekly in USD0 | *** ## Governance ### Voting Rights Holding USUALx confers governance rights without any additional locking requirement for voting. Voting is conducted on-chain. ### Post-STAR Governance Model Following the retirement of USUAL\* in November 2025, governance transitioned to a single-token model where all voting power flows through USUAL/USUALx. Insiders retained influence (\~30.25% of total supply) through their USUAL holdings, but on the same basis as all other holders. ### Governance Scope * Protocol parameter adjustments (fees, emission rates, collateral ratios) * Asset onboarding (new collateral types, integrations) * Treasury management (allocations, investments, operational spending) *** ## Smart Contract Addresses ### Ethereum | Contract | Address | | ------------- | -------------------------------------------- | | USUALx | `0x06B964d96f5dCF7Eae9d7C559B09EDCe244d4B8E` | | USUALx Lockup | `0x85b6f9bddb10c6b320d07416a250f984f0f0e9ed` | | USUALS | `0x094B360AE512A65584d4f5Be33D68B2E08677b89` | | USUALSP | `0xa55AF35E5F4bb6A82E0A290570BcE38Ce2757d37` | *** ## Key Risks | Risk Category | Description | Mitigation | | -------------------- | ------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------- | | Lock illiquidity | Locked USUALx cannot be withdrawn before maturity; users forfeit liquidity for the lock duration | Multiple lock durations (1/3/6/12 months) allow flexible commitment; users can maintain multiple positions with staggered maturities | | Revenue variability | USD0 revenue distributions depend on protocol revenue, which fluctuates with T-Bill yields and TVL | Revenue diversified across T-Bill yield, protocol fees, and Fira lending fees; DAO treasury retains 70% for stability | | Unstaking fee | 10% fee on exit may reduce effective returns for short-duration participants | Fee structure is transparent and DAO-governed; fee partially redistributed to remaining stakers | | USUAL price exposure | USUALx value is denominated in USUAL, which is subject to market price fluctuations | Anti-dilution mechanism (\~22.31% of daily emissions); dual-yield structure provides USD0-denominated income for locked positions | | Smart contract risk | Staking and locking contracts exposed to potential vulnerabilities | USUALx, USUALS, USUALSP, and USUALx Lockup contracts audited by Sherlock (May 2025), Halborn, Spearbit, and others; 20+ total protocol audits | | Epoch timing risk | Deposits or withdrawals at incorrect times within the weekly epoch can result in missed revenue distributions | Eligibility rules are deterministic and documented; users should deposit and lock before Monday UTC+0 | *** ## Quick Links * Documentation: * Technical documentation: * Governance (Snapshot): * Security contact: *** ## Disclaimer This factsheet is provided for informational purposes only and does not constitute financial, legal, or investment advice. All data is sourced from publicly available protocol documentation and governance records as of the date indicated above. Parameters, allocations, and revenue figures are subject to change through DAO governance. Past performance and historical data do not guarantee future results. Prospective participants should conduct independent due diligence and seek professional counsel before engaging with the protocol or acquiring tokens. # Collateral assets | Asset | Provider | Factsheet | | ------- | -------------- | ------------------------------------------------------------------------------ | | USYC | Hashnote | [USYC](/resources-and-ecosystem/fact-sheets/collateral-assets/usyc-hashnote) | | USTBL | Spiko | [USTBL](/resources-and-ecosystem/fact-sheets/collateral-assets/ustbl-spiko) | | euTBL | Spiko | [euTBL](/resources-and-ecosystem/fact-sheets/collateral-assets/eutbl-spiko) | | USCC | Superstate | [USCC](/resources-and-ecosystem/fact-sheets/collateral-assets/uscc-superstate) | | USTB | Superstate | [USTB](/resources-and-ecosystem/fact-sheets/collateral-assets/ustb-superstate) | | $M / wM | M^0 Foundation | [$M / wM](/resources-and-ecosystem/fact-sheets/collateral-assets/m-wm-m0) | # USYC — Hashnote > **Type:** Factsheet — Collateral Asset | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary USYC is the tokenized share of the Hashnote Short Duration Yield Fund, a Cayman Islands Mutual Fund investing exclusively in reverse repurchase agreements and US Government securities. It is the primary collateral asset backing USD0. The fund is regulated under both the Cayman Islands Monetary Authority (CIMA) and the US Commodity Futures Trading Commission (CFTC). Custody is provided by The Bank of New York Mellon, with Marex as prime broker, NAV Consulting as fund administrator, and Cohen & Co as statutory auditor. USYC tokens are standard ERC-20 on Ethereum. In January 2025, Circle (issuer of USDC) completed its acquisition of Hashnote. The fund continues to operate under its existing regulatory framework and service provider chain. USYC remains the single largest direct RWA collateral source for USD0, representing approximately 42.7% of the collateral composition as of mid-2025. *** ## Key Facts | Parameter | Detail | | ---------------------- | ---------------------------------------------------------------------------- | | **Full name** | Hashnote Short Duration Yield Fund | | **Token / Ticker** | USYC | | **Legal structure** | Cayman Islands Mutual Fund | | **Eligibility** | Institutional / permissioned (KYC/KYB required) | | **Base currency** | USD | | **Chain** | Ethereum (ERC-20) | | **Valuation** | NAV-based; on-chain pricing | | **Custody** | The Bank of New York Mellon (BNY Mellon) | | **Prime broker** | Marex | | **Banking** | Customers Bank | | **Fund administrator** | NAV Consulting | | **Auditor** | Cohen & Co | | **Regulatory status** | CIMA Licensed (Cayman Islands); CFTC Registered (US Commodity Pool Operator) | | **Parent company** | Circle Internet Financial (acquired January 2025) | *** ## Investment Mandate & Portfolio * **Universe:** Reverse repurchase agreements and US Government securities. * **Duration:** Short-duration instruments only. Portfolio duration maintained well below the 0.33-year maximum threshold required by Usual Protocol. * **Objective:** Capital preservation with steady yield generation. Minimal market and credit risk exposure. * **Credit quality:** Reverse repos conducted with counterparties clearing through the Depository Trust & Clearing Corporation (DTCC, AA- rated). * **Restrictions:** No leverage, no fractional reserve practices. Fully collateralized at all times. *** ## Subscriptions / Redemptions (Primary) | Parameter | Detail | | ------------------------- | ---------------------------------------------------------------------- | | **Settlement** | T+0 to T+1 | | **Redemption currencies** | USDC, PYUSD | | **On-chain transactions** | Instant during market hours | | **Custody model** | Fully segregated; assets held separately from Hashnote's balance sheet | Fast settlement (T+0 to T+1) is a critical property for maintaining USD0 peg stability and enabling efficient arbitrage between primary and secondary markets. *** ## Fees Fund-level fee details are governed by the fund's offering documents. No public fee schedule is disclosed in protocol documentation. Usual Protocol's tokenizer evaluation framework requires that fees be reasonable and not materially erode returns. *** ## Addresses & Oracles ``` USYC Token (Ethereum).......... 0x136471a34f6ef19fE571EFFC1CA711fdb8E49f2b ``` For oracle/price feed integrations, refer to Hashnote documentation or the Usual Protocol ClassicalOracle at `0xb97e163cE6A8296F36112b042891CFe1E23C35BF` which handles USYC collateral valuation. *** ## Key Risks (Summary) * **Concentration risk:** As the primary collateral for USD0, heavy reliance on Hashnote introduces single-provider concentration risk. Mitigated by the protocol's ongoing collateral diversification strategy (M0, Spiko USTBL, USDC). * **Regulatory risk:** Changes in CIMA or CFTC regulatory frameworks could impact fund operations or redemption processes. * **Operational risk:** Dependence on the service provider chain (BNY Mellon custody, Marex prime brokerage, Customers Bank, NAV Consulting administration). * **Redemption risk:** T+0 to T+1 settlement assumes normal market conditions. Stressed or dislocated markets could extend settlement times. * **Ownership change risk:** Circle's acquisition of Hashnote introduces potential changes in operational practices, fee structures, or strategic direction. * **Counterparty chain risk:** Failure of the tokenizer, fund manager, or custodian bank could impact access to collateral assets. Mitigated by the bankruptcy-remote vehicle structure and fully segregated custody. *** ## Collateral Selection Rationale Hashnote USYC was the first collateral asset made eligible within Usual Protocol. Per the litepaper, it satisfied all four due diligence criteria: 1. **Fully Collateralized:** No leverage, no fractional reserve. Portfolio composed entirely of reverse repos. 2. **Low Risk:** Counterparties clearing through DTCC (AA- rated). Experienced fixed-income investment team. 3. **Transparent:** Holdings verifiable on-chain. Independent audits by Cohen & Co. Fund administration by NAV Consulting. 4. **Liquid:** Overnight and short-duration instruments. Portfolio duration well below the 0.33-year threshold. T+0 to T+1 settlement. *** ## Quick Links * Usual Docs — RWA Collateral: * Hashnote: * Etherscan — USYC: *** ## Disclaimer This factsheet is informational and does not constitute investment advice or a solicitation. It reflects publicly available data as of the date indicated. Consult the fund's offering documents and your own advisers before making any investment decision. # USTBL — Spiko > **Type:** Factsheet — Collateral Asset | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary USTBL is the tokenized share of the Spiko US T-Bills Money Market Fund, a UCITS short-term money market fund investing exclusively in short-term US Treasury securities. The fund is managed by Twenty First Capital under AMF authorization (GP-11000029) and domiciled in France as part of the SPIKO SICAV umbrella. CACEIS Bank serves as depositary, CACEIS Fund Administration handles NAV computation, and PricewaterhouseCoopers (PwC) is the statutory auditor. USTBL was approved as eligible collateral for USD0 via UIP-14 (December 2025, 99.9% approval). The proposal was supported by a dedicated security review conducted by Cantina (formerly Spearbit), which found no material findings beyond informationals. On-chain pricing is provided via a Chainlink NAV feed. USTBL tokens are ERC-20 with restricted transfers (allowlist-gated). *** ## Key Facts | Parameter | Detail | | ----------------------------- | ------------------------------------------------------------------ | | **Full name** | Spiko US T-Bills Money Market Fund | | **Token / Ticker** | USTBL | | **Legal structure** | SPIKO SICAV (UCITS, France) | | **Classification** | Short-term money market fund | | **Management company** | Twenty First Capital (AMF GP-11000029) | | **Depositary** | CACEIS Bank (Credit Agricole group) | | **Fund administrator** | CACEIS Fund Administration | | **Auditor** | PricewaterhouseCoopers (PwC) | | **Distributor** | Spiko Finance | | **Base currency** | USD | | **Chain** | Ethereum (ERC-20, upgradeable, restricted transfers via allowlist) | | **Decimals** | 5 (non-standard) | | **AUM** | \~$600M (at time of UIP-14 approval) | | **Regulatory status** | AMF-approved (France); UCITS-compliant | | **Usual governance approval** | UIP-14 (December 18, 2025) | *** ## Investment Mandate & Portfolio * **Universe:** Exclusively short-term US Treasury securities. * **Duration:** Short-term instruments consistent with UCITS money market fund requirements. * **Objective:** Capital preservation with yield linked to short-term US government rates. * **Restrictions:** No corporate debt, no leverage. Investments restricted to sovereign US debt. *** ## Subscriptions / Redemptions (Primary) | Parameter | Detail | | --------------------- | --------------------------------------------------------------- | | **Valuation** | Daily | | **Settlement** | Same day ("J") | | **Fees (fund level)** | 0% subscription / 0% redemption | | **Management fee** | 25 bps/year | | **Performance fee** | None | | **Access** | KYC/KYB required; transfers restricted to allowlisted addresses | *** ## Fees | Fee type | Amount | | ---------------- | ----------- | | Subscription fee | 0% | | Redemption fee | 0% | | Management fee | 25 bps/year | | Performance fee | None | *** ## Addresses & Oracles ``` USTBL Token (Ethereum, proxy)......... 0xe4880249745eAc5F1eD9d8F7DF844792D560e750 Chainlink USTBL NAV Feed.............. 0x477e363c51Ab0C4D13B22CD6B57D56d4a3Cb7Abe ``` **Oracle parameters (Usual Protocol side):** * Heartbeat: 97,200 sec (\~27h) * Protocol-side timeout: 345,600 sec (4 days) * isStablecoin: false * Decimal normalization: token (5 decimals) and feed (6 decimals) normalized to 18 decimals internally **On-chain integration:** DaoCollateral accepts USTBL in swap / redeem / redeemDao flows, gated by `TokenMapping.isUsd0Collateral()` and priced via `ClassicalOracle`. **Security controls:** * Rate-limited on-chain minter deployed * Worst-case mint-path impact capped at $5M * Live monitoring and automated pausing * Shared on-call and incident response procedures with Spiko *** ## Key Risks (Summary) * **Sovereign credit risk:** Low but non-zero risk of US government default on short-term obligations. * **Interest-rate risk:** Minimal given the short duration mandate, but present under rapid rate movement scenarios. * **Liquidity risk:** Under stress, UCITS money market fund tools (e.g., gates, redemption limits) may apply per EU regulation. * **Operational / DLT risk:** Allowlisted transfers, reliance on CACEIS for NAV computation and custody, and dependence on Chainlink oracle infrastructure. * **Non-standard decimals:** USTBL uses 5 decimals (vs. the standard 18 or 6), introducing decimal-handling complexity in smart contract integrations. Usual normalizes to 18 decimals internally. * **Regulatory risk:** Changes in AMF or UCITS regulatory frameworks could impact fund operations. *** ## Security Review * **Cantina Managed Review** (September 2025, commissioned by Usual Labs): Scope covered risk to USD0 protocol from USTBL inclusion. Result: no findings beyond informationals. Several informational items already remediated. * **Spiko third-party audits:** Multiple audits completed prior to Usual onboarding. * **Usual Labs internal audit:** Covered on-chain smart contracts and off-chain computation/operational architecture. *** ## Quick Links * Spiko: * Spiko Dollar: * Prospectus (SPIKO SICAV): * Spiko Documentation: * Spiko Audits: * Token Addresses: * Chainlink USTBL NAV Feed: * UIP-14 Snapshot Vote: *** ## Disclaimer This factsheet is informational and does not constitute investment advice or a solicitation. It reflects publicly available data as of the date indicated. Consult the fund's prospectus, KID, and your own advisers before making any investment decision. # M / wM — M^0 > **Type:** Factsheet — Collateral Asset | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary $M is the base stablecoin of the M^0 protocol. It is minted by permissioned Minters against off-chain eligible collateral (typically US Treasury bills held in special-purpose vehicles) and validated by an independent set of Validators. $M supports two balance modes: non-earning (standard ERC-20) and earning (rebasing) for addresses approved by governance. Earner balances grow continuously via the protocol's rate model, while Minters pay interest; the design guarantees that total earner interest never exceeds 98% of total minter interest. WrappedM (wM) is a non-rebasing ERC-20 wrapper around $M. It preserves the yield capability of $M while using static balances and claimable yield, making it compatible with DeFi protocols that do not handle rebasing tokens. Within the Usual Protocol ecosystem, M (via the UsualM wrapper at `0x4Cbc25559DbBD1272EC5B64c7b5F48a2405e6470`) serves as an active collateral asset for USD0, representing a meaningful share of the diversified collateral base alongside Hashnote USYC, Spiko USTBL, and USDC. *** ## Key Facts | Parameter | Detail | | ----------------------- | -------------------------------------------------------------------------------------------------------------------- | | **Project** | M^0 -- the universal stablecoin platform | | **Tokens** | $M (rebasing for approved earners); wM (non-rebasing wrapper with claimable yield) | | **Backing** | Off-chain eligible collateral (US T-Bills in SPVs) with on-chain attestations by Validators | | **Collateralization** | Governance-set mint ratio enforces over-collateralization | | **Yield engine** | Dual rate model: Minters pay a minter rate; Earners receive an earner rate (capped at 98% of the provably safe rate) | | **Decimals** | 6 (both $M and wM on Ethereum) | | **Multichain** | Hub on Ethereum; live on Arbitrum, Optimism, Plume, Solana | | **Bridging** | M Portals (Wormhole NTT or Hyperlane): hub lock/release, spoke mint/burn | | **Audits** | Quantstamp, Three Sigma, Certora, Chainsecurity, OpenZeppelin, Halborn, Ottersec | | **Usual Protocol role** | Active USD0 collateral (wrapped as UsualM) | *** ## Investment Mandate & Portfolio * **Collateral type:** Eligible collateral, typically US Treasury bills held in bankruptcy-remote special-purpose vehicles (SPVs). * **Minting mechanism:** Permissioned Minters report verified off-chain collateral to the MinterGateway smart contract. Collateral must remain above the governance-set mint ratio, with updates at specified intervals (e.g., 30 hours). * **Validation:** Independent Validators co-sign collateral updates and retain the ability to freeze Minters or cancel mints. * **Yield:** Continuous indexing maintains synchronized indexes for Minters (debt) and Earners (rebasing balances). The EarnerRateModel guarantees that total earner interest does not exceed 98% of total minter interest over a defined confidence window. *** ## Subscriptions / Redemptions (Primary) | Parameter | Detail | | ----------------------------------- | ----------------------------------------------------------------------- | | **Institutional (primary)** | Direct with Minters via KYB; zero-slippage primary flows in USD or USDC | | **On-chain (retail / integrators)** | Acquire $M or wM on DEX pools and wrap/unwrap as needed | | **Wrapping** | $M can be wrapped into wM at any time; wM can be unwrapped back to $M | *** ## Fees | Fee type | Detail | | ------------------ | -------------------------------------------------------------------------------------------------- | | Protocol rates | Minters pay the minter rate; Earners receive the earner rate (capped at 98% of provably safe rate) | | Spread | Excess yield + penalties accrue to the Distribution (TTG) Vault | | wM integrator fees | Optional fee (bps) on claimed yield | *** ## Addresses & Oracles **Ethereum mainnet:** ``` M Token ($M)..................... 0x866A2BF4E572CbcF37D5071A7a58503Bfb36be1b Wrapped M (wM)................... 0x437cc33344a0B27A429f795ff6B469C72698B291 MinterGateway.................... 0xf7f9638cb444D65e5A40bF5ff98ebE4ff319F04E EarnerRateModel.................. 0x26d01A2c91f6529aD72d2C27a03d963CAb90dFfd MinterRateModel.................. 0xcA144B0Ebf6B8d1dDB5dDB730a8d530fe7f70d62 TTG Registrar.................... 0x119FbeeDD4F4f4298Fb59B720d5654442b81ae2c Distribution (TTG) Vault......... 0xd7298f620B0F752Cf41BD818a16C756d9dCAA34f Hub Portal....................... 0xD925C84b55E4e44a53749fF5F2a5A13F63D128fd ``` **Usual Protocol wrapper:** ``` UsualM (Wrapped M for Usual)..... 0x4Cbc25559DbBD1272EC5B64c7b5F48a2405e6470 ``` Full deployments for Arbitrum, Optimism, Plume, Solana: *** ## Governance & Security * **Two-Token Governance (TTG):** * **POWER:** Standard and emergency governance (operational parameters, lists, rates). * **ZERO:** Meta-governance plus claim on Distribution Vault revenues. * **Governance operates on fixed 15-day epochs.** * **Audits:** Quantstamp, Three Sigma, Certora, Chainsecurity, OpenZeppelin, Halborn, Ottersec, and others. *** ## Key Risks (Summary) * **Collateral and attestation risk:** Off-chain collateral depends on Minters and Validators operating correctly and honestly. Collateral verification is not fully on-chain; it relies on attestation and validation infrastructure. * **Governance risk:** Protocol parameters (mint ratio, rates, approved lists) are governed by TTG. Misconfiguration or governance attacks could affect yields, collateralization ratios, or minter/earner approvals. * **Bridging / multichain risk:** Hub-and-spoke bridging via M Portals introduces bridge security assumptions and potential cross-chain coordination risks. * **Wrapper mechanics risk (wM):** wM relies on earnings approvals and rounding rules. The solvency invariant (all wM liabilities fully backed by $M in the wrapper) must hold at all times. * **Counterparty risk:** Dependence on Minters (institutional counterparties) to maintain collateral levels and update attestations on schedule. *** ## Quick Links * $M Token (overview): * WrappedM (overview): * Rates & Yield Models: * Collateral System: * M Portals (multichain): * Deployments (addresses): * Audits: * Disclosures: *** ## Disclaimer This factsheet is informational and does not constitute investment, legal, or tax advice. $M and wM are components of the M^0 protocol with eligibility and governance constraints. Always verify addresses on the official Deployments page and consult the Disclosures and primary documentation before interacting. # euTBL — Spiko > **Type:** Factsheet — Collateral Asset | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary euTBL is the tokenized share of the Spiko EU T-Bills Money Market Fund, a euro-denominated UCITS short-term VNAV money market fund that invests exclusively in euro-area Treasury bills, repos secured by those bills, and cash. Fund shares are natively issued as ERC-20 tokens on multiple public blockchains; the tokens constitute the official fund shares, with the shareholder register maintained on distributed ledger technology (DLT). euTBL serves as the sole collateral asset backing EUR0, Usual Protocol's euro-denominated stablecoin. Twenty First Capital is the management company (AMF license GP-11000029), CACEIS Bank is the depositary, CACEIS Fund Administration handles NAV computation, and PricewaterhouseCoopers (PwC) is the statutory auditor. Daily NAV is calculated by CACEIS and published on-chain via Chainlink. *** ## Key Facts | Parameter | Detail | | ----------------------------- | -------------------------------------------------------------- | | **Full name** | Spiko EU T-Bills Money Market Fund (euTBL) | | **Legal structure** | SPIKO SICAV (UCITS, France) | | **Classification** | Short-term VNAV money market fund (EU Reg. 2017/1131) | | **Management company** | Twenty First Capital (AMF GP-11000029) | | **Depositary** | CACEIS Bank | | **Fund administrator** | CACEIS Fund Administration | | **Auditor** | PricewaterhouseCoopers (PwC) | | **Distributor** | Spiko Finance (ORIAS 23008251) | | **Base currency / Benchmark** | EUR; EUR STR (compounded) | | **Valuation** | Daily (French business days) | | **Order cut-off** | 10:30 CET | | **Execution price** | Last known NAV | | **Settlement** | Same day ("J") | | **Distribution** | Accumulating (capitalization) | | **ISIN** | FR001400ODL1 | | **Bloomberg** | SPKEUMM FP | | **DLT register** | Ethereum, Polygon PoS, Arbitrum One, Starknet, Base, Etherlink | | **Smart contract audit** | Trail of Bits | | **Usual Protocol role** | Sole collateral for EUR0 | *** ## Investment Mandate & Portfolio * **Universe:** Investment-grade euro-area Treasury bills, repos backed by those bills, and cash. * **Interest-rate risk:** WAM (Weighted Average Maturity) capped at 60 days; maximum individual maturity below 6 months (per EU MMF regulation). * **Objective:** Capital preservation with performance close to or superior to compounded EUR STR over a very short recommended investment horizon (1 day). * **Restrictions:** No corporate debt, no leverage. Exclusively sovereign euro-area obligations. *** ## Subscriptions / Redemptions (Primary) | Parameter | Detail | | ----------------------------------- | ---------------------------- | | **Valuation frequency** | Daily (French business days) | | **Cut-off** | 10:30 CET | | **Execution price** | Last known NAV | | **Settlement** | Same day ("J") | | **Minimum initial subscription** | EUR 1,000 | | **Minimum subsequent subscription** | EUR 1 | | **Minimum redemption** | EUR 1 | | **Subscription fee** | 0% | | **Redemption fee** | 0% | | **Management fee** | Max 0.30% incl. VAT | | **Performance fee** | None | **EUR0 integration specifics:** * Direct path (permissioned): euTBL deposited to mint EUR0 at par (1 euTBL = 1 EUR0). Redemption at par minus 3 bps fee. * Indirect path (permissionless): EURC converted to EUR0 via the Swapper Engine (EURC -> euTBL -> EUR0). Non-atomic; T+0 instant if buffer available, T+1 to T+5 otherwise. *** ## Fees | Fee type | Amount | | ---------------- | ------------------- | | Subscription fee | 0% | | Redemption fee | 0% | | Management fee | Max 0.30% incl. VAT | | Performance fee | None | *** ## Addresses & Oracles ``` euTBL Token (Ethereum)......... 0xa0769f7a8fc65e47de93797b4e21c073c117fc80 Chainlink euTBL NAV Oracle..... See Spiko/Chainlink documentation for current feed address ``` **NAV oracle:** Chainlink publishes the official daily NAV on-chain, with inputs sourced from CACEIS. *** ## Tokenization & On-Chain Architecture * **Token nature:** ERC-20 representing a share of the fund. The shareholder register is maintained on DLT. Transfers permitted only between allowlisted (KYC/KYB) addresses via a Permission Manager. * **Smart contracts:** Open-source, UUPS-upgradeable architecture. Audited by Trail of Bits. * **On-chain redemptions:** Investors submit a redemption request to the Redemption contract; tokens are burned and settlements processed daily in fiat or stablecoins. *** ## Key Risks (Summary) * **Sovereign risk:** Low but non-zero risk of default by a euro-area state on its T-bills. * **Interest-rate risk:** Low (very short maturities: WAM capped at 60 days, max maturity below 6 months), but present under rapid rate movements. * **Liquidity risk:** Under stress, MMF tools (e.g., gates, swing pricing) may apply per EU MMF regulation. * **Operational / DLT risk:** Shareholder register on public DLT with allowlisting; reliance on CACEIS for custody and NAV computation, and on Chainlink for on-chain price publication. * **FX risk (Usual context):** None for EUR0 holders (EUR-denominated collateral for EUR-denominated stablecoin). Cross-currency exposure arises only for holders converting EUR0 to USD0 or vice versa. *** ## Quick Links * Prospectus (SPIKO SICAV): * KID -- euTBL (EN): * Twenty First Capital -- euTBL fund page: * CACEIS press -- Spiko tokenized MMFs: * Spiko Tech Blog: * Etherscan -- euTBL: * RWA.xyz -- euTBL: *** ## Disclaimer This factsheet is informational and does not constitute investment advice or a solicitation. It reflects publicly available data as of the date indicated. Consult the fund's prospectus, KID, and your own advisers before making any investment decision. # USCC — Superstate > **Type:** Factsheet — Collateral Asset | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary USCC is a tokenized private fund that provides exposure to crypto cash-and-carry (basis) strategies across Bitcoin and Ether, including ETH staking on the spot leg, with the flexibility to hold US Treasury securities as part of the investment mandate. Shares are issued as USCC tokens on Ethereum, Solana, and Plume, or may be held in book-entry form. The fund is structured as a series of the Superstate Asset Trust, a bankruptcy-remote Delaware Statutory Trust, and is offered exclusively to Qualified Purchasers under Reg D 506(c). Within the Usual Protocol ecosystem, USCC constitutes approximately 90% of the underlying collateral for USD0a (Alpha USD0), the protocol's market-neutral enhanced-yield savings instrument. USCC is not a direct collateral asset for USD0. *** ## Key Facts | Parameter | Detail | | ----------------------- | --------------------------------------------------------------------------------------- | | **Full name** | Superstate Crypto Carry Fund | | **Token / Ticker** | USCC | | **Legal structure** | Series of Superstate Asset Trust (Delaware Statutory Trust, bankruptcy-remote) | | **Fund exemption** | Private fund exempt under Section 3(c)(7); offered under Reg D 506(c) | | **Eligibility** | Qualified Purchasers only; on-chain transfers restricted to allowlisted wallets | | **Base currency** | USD | | **Chains** | Ethereum, Solana, Plume; or book-entry | | **Valuation** | NAV per share (NAV/S) calculated once per market day; initial NAV/S $10.00 (6 decimals) | | **Market day** | Each day both NYSE and FRB Philadelphia are open | | **Usual Protocol role** | \~90% of USD0a collateral composition (not USD0 collateral) | *** ## Investment Mandate & Portfolio * **Strategy:** Optimize crypto basis (spot vs. CME-listed dated futures on the same underlying), ETH staking, and US Treasury securities to deliver cash-rate-linked, market-neutral returns. * **Accrual model:** Static token amount; NAV/S increases over time as income accrues (analogous to wstETH mechanics). * **Underlyings:** Bitcoin (spot + futures), Ether (spot + futures + staking), US Treasury securities. * **Key characteristic:** Market-neutral. The long-spot / short-futures construction minimizes directional exposure to BTC and ETH price movements. Yield is driven by structural convergence of dated futures prices toward spot at maturity. *** ## Subscriptions / Redemptions (Primary) ### Purchasing USCC | Parameter | Detail | | ------------------- | ----------------------------------------------------------------- | | **Payment methods** | USD (wire), USDC (Ethereum), USDC (Solana) | | **Cut-off** | 4:59 PM ET | | **Pricing** | Closing NAV/S of the market day funds are received | | **Settlement** | T+1 (if received before cut-off); T+2 (if received after cut-off) | | **Minimum** | $100,000 initial (may be waived) | ### Redeeming USCC | Parameter | Detail | | -------------- | ------------------------------------------------------------------------ | | **Method** | Send tokens to redemption address or call `offchainRedeem()` on Ethereum | | **Payout** | USD (bank), USDC (Ethereum), USDC (Solana) | | **Pricing** | Closing NAV/S of the market day (if requested before 4:59 PM ET) | | **Settlement** | T+1 | | **Minimum** | No minimum | *** ## Fees | Fee type | Amount | | ----------------------------- | ------------------------------------------------ | | Management fee | 0.75% (accrues daily, reflected in NAV) | | Fee waiver | Fee + expenses waived until AUM exceeds $50M | | Operating expenses | Custody, administration, audit -- accrued in NAV | | Subscription / Redemption fee | None | *** ## Addresses & Oracles **Ethereum mainnet:** ``` USCC Token Proxy............... 0x14d60e7fdc0d71d8611742720e4c50e7a974020c Chainlink USCC Oracle.......... 0xAfFd8F5578E8590665de561bdE9E7BAdb99300d9 AllowlistV3 Proxy.............. 0x02f1fa8b196d21c7b733eb2700b825611d8a38e5 ``` **Solana (SPL 2022):** ``` USCC Token (Mainnet)........... BTRR3sj1Bn2ZjuemgbeQ6SCtf84iXS81CS7UDTSxUCaK Pyth USCC Oracle............... 823Y4cV7XH2TzkB9NdHfTRoCKLrqXv8EgQP5nzEG43Hp ``` *** ## Key Risks (Summary) * **Basis / strategy risk:** The crypto basis can widen temporarily, producing mark-to-market drawdowns until convergence or roll. Even with delta-neutral construction, basis dislocations in stressed markets can force early unwinds and crystallize losses. * **Liquidity / operational risk:** Primary flows depend on banking rails, USDC processing, and on-chain operations. Redemptions settle T+1. * **Eligibility / transfer risk:** Access restricted to Qualified Purchasers. On-chain transfers limited to allowlisted addresses. * **Counterparty / venue risk:** Reliance on Anchorage (custody), CME-affiliated trading venues (futures margin), Circle (USDC flow), and clearing/settlement infrastructure. * **Forced unwind risk (USD0a context):** Large USD0a redemptions can force early unwind or roll of the carry trade, potentially crystallizing losses or forfeiting expected carry. *** ## Quick Links * USCC -- Overview: * Income, Fees & Yield: * Purchasing USCC: * Redeeming USCC: * Smart Contracts: * Security: *** ## Disclaimer This factsheet is informational and does not constitute investment advice or an offer/solicitation. USCC is available only to Qualified Purchasers who complete onboarding and meet all eligibility requirements. Always rely on the Offering Documents and the Investor Portal as the source of truth. # USTB — Superstate > **Type:** Factsheet — Collateral Asset | **Squad:** Usual | **Status:** Draft | **Stream:** BD **Last updated:** 2026-02-16 *** ## Executive Summary USTB is a tokenized short-duration US government securities fund managed by Superstate. Fund shares are issued as on-chain tokens on Ethereum, Solana, and Plume, or held in book-entry form. The fund is structured as a series of the Superstate Asset Trust, a bankruptcy-remote Delaware Statutory Trust, offered exclusively to Qualified Purchasers under Reg D 506(c). Custody is provided by The Bank of New York Mellon. USTB employs a Continuous NAV per share (NAV/S) model that updates every second, 24/7. Purchases and redemptions are priced at the Continuous NAV/S at the time of the transaction, enabling near-instantaneous pricing. Within the Usual Protocol ecosystem, USTB serves as part of the collateral backing for USD0a (Alpha USD0) and the Superstate vault (via Lagoon). USTB is not a direct collateral asset for USD0. *** ## Key Facts | Parameter | Detail | | ----------------------- | -------------------------------------------------------------------------------------------------------- | | **Full name** | Superstate Short Duration U.S. Government Securities Fund | | **Token / Ticker** | USTB | | **Legal structure** | Series of Superstate Asset Trust (Delaware Statutory Trust, bankruptcy-remote) | | **Fund exemption** | Private fund exempt under Section 3(c)(7); offered under Reg D 506(c) | | **Eligibility** | Qualified Purchasers only; on-chain transfers restricted to allowlisted wallets | | **Base currency** | USD | | **Chains** | Ethereum, Solana, Plume; or book-entry | | **Valuation** | Continuous NAV/S (updates every second, 24/7) | | **Market day** | Each day both NYSE and FRB Philadelphia are open, from 9:00 AM ET to 8:59 AM ET the next day | | **Custody** | The Bank of New York Mellon | | **Usual Protocol role** | Part of USD0a collateral (\~10% USTB + USDC buffer); Superstate vault (via Lagoon). Not USD0 collateral. | *** ## Investment Mandate & Portfolio * **Universe:** Short-duration US government securities, including US Treasury Bills, US agency securities, and repos secured by government/agency collateral. * **Objective:** Capital preservation with yield from short-duration government instruments. * **Accrual model:** Interest accrues into NAV (no coupons distributed). NAV/S rises continuously. *** ## Subscriptions / Redemptions (Primary) ### Purchasing USTB | Parameter | Detail | | ------------------- | ----------------------------------------------- | | **Payment methods** | USD (wire), USDC (Ethereum), USDC (Solana) | | **Pricing** | Continuous NAV/S at the time funds are received | | **Minimum** | $100,000 initial (may be waived) | ### Redeeming USTB | Parameter | Detail | | ----------- | ------------------------------------------------------------------------ | | **Method** | Send tokens to redemption address or call `offchainRedeem()` on Ethereum | | **Payout** | USD (bank), USDC (Ethereum), USDC (Solana) | | **Pricing** | Continuous NAV/S at the time shares are received | | **Minimum** | No minimum | *** ## Fees | Fee type | Amount | | ----------------------------- | ----------------------------------------------------------------------------------------- | | Management fee | Up to 15 bps (accrues daily, reflected in NAV); only charged after fund reaches $200M NAV | | Fee schedule | <$25M: 0.15%; >$25M: 0.15% on first $25M + 0.05% above $25M | | Subscription / Redemption fee | None | *** ## Addresses & Oracles **Ethereum mainnet:** ``` USTB Token Proxy................. 0x43415eB6ff9DB7E26A15b704e7A3eDCe97d31C4e AllowlistV3 Proxy................ 0x02f1fa8b196d21c7b733eb2700b825611d8a38e5 RedemptionIdle Proxy............. 0x4c21b7577c8fe8b0b0669165ee7c8f67fa1454cf USTB Continuous Price Oracle..... 0xe4fa682f94610ccd170680cc3b045d77d9e528a8 Chainlink USTB Oracle............ 0x289B5036cd942e619E1Ee48670F98d214E745AAC ``` For Solana and Plume token addresses, refer to the official Superstate deployments page: *** ## Key Risks (Summary) * **Interest-rate risk:** Even with ultra-short duration, the value of T-Bill and agency holdings changes with rate movements. Losses are possible in rapid-tightening environments. * **Liquidity / operational risk:** Primary flows depend on banking rails, USDC processing, and on-chain operations. * **Eligibility / transfer risk:** Access limited to Qualified Purchasers. On-chain transfers restricted to allowlisted addresses. * **Counterparty risk:** Reliance on The Bank of New York Mellon for custody, NAV agent for pricing, Chainlink and the Continuous Price Oracle for on-chain valuation, and key management infrastructure. * **Continuous NAV model risk:** The second-by-second pricing model introduces dependency on the oracle infrastructure for real-time accuracy. *** ## Quick Links * USTB -- Overview: * Income, Fees & Yield: * Purchasing USTB: * Redeeming USTB: * Smart Contracts: * Security: *** ## Disclaimer This factsheet is informational and does not constitute investment advice or an offer/solicitation. USTB is available only to Qualified Purchasers who complete onboarding and meet all eligibility requirements. Always rely on the Offering Documents and the Investor Portal as the source of truth. # Usual Stability Loan (Euler) ## Overview USL functions similarly to MakerDAO’s **D3M** or Frax’s **AMOs**: a protocol-controlled mechanism intended to stabilize the bUSD0 peg while enabling predictable borrowing. Users deposit **bUSD0** as collateral and borrow **USD0** at a low, predictable rate. Because the USL oracle is **hardcoded to 1:1**, liquidations are driven by **interest accrual**, not secondary-market price moves. *** ## Key advantages * **Liquidity injection**: unlocks substantial liquidity for bUSD0 holders by enabling borrowing against locked positions. * **Peg stabilization**: when bUSD0 trades below $1, USL enables arbitrage loops that create natural buy pressure toward parity. * **Attractive yields**: users can benefit from the discount-to-par on bUSD0 and leverage opportunities. * **Increased DAO revenue**: borrowing interest/fees flow to the DAO, increasing income per **USUAL** token. * **No undercollateralization risk (protocol-level)**: only **USD0 not backing bUSD0** can be allocated to the lending vault, enforced by smart contracts. * **No DAO solvency risk**: bUSD0 collateral remains locked; if a borrower defaults, the protocol **seizes and burns the bUSD0**, creating **no bad debt**. * **High predictability**: users can lock a fixed rate and estimate a liquidation date in advance. *** ## USL on Euler: vault design and parameters USL is deployed on Euler as an **ungoverned vault**. In this context, “ungoverned” means **core parameters are immutable after deployment**. The DAO’s governance control is limited to the **oracle router**. | Parameter | Value | Notes | | ----------------- | -------------------: | ----------------------------------------------------------------------------- | | **LTV** | 0.88 | Users can borrow up to **0.88 USD0 per 1 bUSD0** | | **LLTV** | 0.9999 | Liquidation threshold: triggers when debt reaches **99%** of collateral value | | **Oracle** | Hardcoded at **1:1** | **1 bUSD0 is always valued at 1 USD0**, regardless of market price | | **Interest rate** | Fixed | Initially **5% APR**; later reduced to **1.5%.** | | **Market type** | Ungoverned | Parameters immutable once deployed | ### Why the oracle is hardcoded at 1:1 Each **bUSD0** is backed by exactly **1 USD0** locked in the protocol and redeemable **1:1 at maturity (June 2028)**. For this reason, USL values bUSD0 at **par** (1 bUSD0 = 1 USD0) regardless of secondary-market price. **Implication:** liquidations are driven by **borrowed amount + accrued interest/fees**, not by bUSD0 market volatility. *** ## Liquidation mechanics and timeline Liquidation occurs when the position’s debt reaches the **0.99 LLTV** against collateral value (at the hardcoded 1:1 oracle). At the initial configuration (**0% base rate + 10 bps protocol fee**, **0.88 LTV**), a borrower would not reach the **0.9999 LLTV** for an extended period—safely beyond the bond maturity date (**June 2028**). This gives borrowers exceptional predictability regarding if/when liquidation could occur. *** ## How the leverage loop works USL enables an iterative leverage strategy (“looping”) that increases exposure: 1. **Lock** 1 USD0 into **1 bUSD0** (1:1 conversion) 2. **Borrow** **0.88 USD0** against the 1 bUSD0 (88% LTV) 3. **Buy** some **bUSD0** 4. **Borrow again USD0** against bUSD0 5. **Repeat** to increase exposure ### Collateral safety guarantee (protocol constraints) USL can only lend **USD0 sourced from the DAO treasury,** not USD0 that is already backing bUSD0. This is enforced at the smart-contract level and prevents the protocol from lending out assets required to maintain bond backing. If a borrower defaults, the protocol seizes the **bUSD0** collateral and **burns it**, preserving full collateralization for all remaining USD0. *** ## Zero-coupon bond evolution (UIP-11) USL underwent a major change following **UIP-11**, the **“Disinflation Shock”** governance proposal implemented in two phases (**December 2025** and **January 2026**). After UIP-11, bUSD0 positions in USL were restructured as **pure zero-coupon bonds**. ### What changed | Aspect | Pre-UIP-11 | Post-UIP-11 | | ------------------------------------ | ------------------------------------- | -------------------------------------- | | **USUAL emissions on USL positions** | Active (**41.6%** of daily emissions) | **0%** (fully eliminated) | | **Yield source for USL borrowers** | USUAL rewards + leverage | **Discount-to-par only** (zero-coupon) | | **Interest rate model** | Fixed **5% APR** | **1.5% APR** | | **Daily USUAL to USL** | \~**1,139,094 USUAL/day** | **0 USUAL/day** | ### Zero-coupon mechanics (discount-to-par) With USUAL rewards removed, the yield within USL comes entirely from **bUSD0 converging to face value at maturity**: * At a floor price of **$0.92** with \~**2.75 years to maturity** (June 2028), the implied yield is approximately **2.9% APR** (unleveraged). * With maximum leverage (approximately **15×** under the revised parameters). This change reframed USL from a “farm-and-dump” dynamic into a fixed-income-style product where returns primarily come from **convergence to par**, which is a familiar model for traditional finance participants. *** ## Summary | Parameter | Value | | --------------------------------- | ---------------------------- | | **Platform** | Euler (ungoverned vault) | | **Collateral** | bUSD0 (bonded USD0) | | **Borrow asset** | USD0 | | **LTV** | 0.88 | | **LLTV (liquidation)** | 0.9999 | | **Oracle** | Hardcoded 1:1 (bUSD0 = USD0) | | **Max theoretical leverage** | \~8.33× at 1 bUSD0 = 1 USD0 | | **Current borrowing fee** | 1,5% yearly | | **USUAL emissions (post-UIP-11)** | 0% (pure zero-coupon model) | | **Bond maturity** | June 11, 2028 | # Usual Airdrop {"id":"rE4zN9daneetYeeG8CO4","title":"Usual Airdrop","kind":"sheet","type":"document","urls":{"app":" Campaign Rules","kind":"sheet","type":"document","urls":{"app":" Program","kind":"sheet","type":"document","urls":{"app":" Bonus","kind":"sheet","type":"document","urls":{"app":" airdrop rewarding participants from the pre-launch phase will take place in mid-December. Until then, stay tuned for updates, especially the release of the airdrop checker. This airdrop is finalized.","marks":\[]}],"key":"105DiGDntFCJ"}],"key":"UdK80aQFiZAN"}],"key":"CfOSZSfS27PM"}} # Pills Campaign Rules {"id":"dllADL4YbBDJg2Ce5eIc","title":"Pills Campaign Rules","kind":"sheet","type":"document","urls":{"app":" Are Usual Pills?","marks":\[]}],"key":"QUxaTwe5Nq5a"}],"key":"bdNpbJXqdnfY","meta":{"id":"what-are-usual-pills"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Usual Pills are pre-launch points that you can earn through various activities within the Usual protocol. These points determine the amount of $USUAL tokens you will receive during the airdrop, which represents 7.5% of the $USUAL total supply at TGE.","marks":\[]}],"key":"hPNBad1e2oEe"}],"key":"CdqCeto13hlF"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"You can track all Pills issued by the protocol to date through Drugstore page in the Usual dAPP.","marks":\[]}],"key":"4IEPs4SqrpSI"}],"key":"jyIwlCqQrZ5D"},{"object":"block","type":"images","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"image","isVoid":true,"data":{"alt":"","ref":{"kind":"file","file":"zRniKs4TfTPN68i4LkJF"}},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"stCX200rUbkN"}],"key":"6TRdiN3izt59","fragments":\[{"object":"fragment","nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"djkmoaa55L5e"}],"key":"MPyDEZANu2EG"}],"key":"qDucDCOh16G2","fragment":"caption"}]}],"key":"gWCcMw1Nh4BF"},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Why Should I Collect Usual Pills?","marks":\[]}],"key":"6G8W9oVbyrzO"}],"key":"HrI5oH5a0gdu","meta":{"id":"why-should-i-collect-usual-pills"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Do you believe that the future of crypto should be user-focused? So do we. Do you think that users should control the infrastructure of tomorrow's financial services? We agree. Do you believe that the value generated by your stablecoins should benefit you? We’re on the same page.","marks":\[]}],"key":"9oYLofMWjW70"}],"key":"t0amzvbihO8m"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Usual Pills are your ticket out of the fiat-backed matrix. These purple pills represent a smart choice—collect as many as you can to secure your escape when the time comes.\n","marks":\[]}],"key":"FrvMnfi3wKJm"}],"key":"EGYSTUimLiDg"},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Usual Airdrop","marks":\[]}],"key":"RjFdgs8iYb0L"}],"key":"qeA2kC0tJCuM","meta":{"id":"usual-airdrop"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"The Pills program is designed to reward users who contribute liquidity during the bootstrapping phase of the protocol, a phase that precedes the yield generation of USD0++ in the form of Usual Tokens and the full release of Usual's features.","marks":\[]}],"key":"LEL8iSeKDa4g"}],"key":"fog2C2fYXaWb"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"By collecting Pills, you will receive a percentage of the airdrop based on the number of Pills you accumulate during the pre-launch period. The airdrop is scheduled for Q4 2024, after the pre-launch period ends in mid-November 2024.","marks":\[]}],"key":"mvk5vby37WK3"}],"key":"waoVh52Ifnji"}],"key":"ikhU2HHxR6xm","meta":{"id":"pills"}},{"object":"block","type":"tabs-item","isVoid":false,"data":{"title":"Pre-launch Bonus"},"nodes":\[{"object":"block","type":"heading-1","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Bonus Pills","marks":\[]}],"key":"oD2RNT6thD3V"}],"key":"Rz99MPHX7lyH","meta":{"id":"bonus-pills"}},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"What are Bonus Pills.","marks":\[]}],"key":"Imv92crDecQx"}],"key":"NFxD87eeSCfm","meta":{"id":"what-are-bonus-pills"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Bonus Pills are additional Pills distributed to users who are eligible for this bonus. This bonus is directly tied to the issuance of new USD0++ on the primary market and is updated daily based on the amount of USD0++ issued.","marks":\[]}],"key":"dPlhQjONbWnw"}],"key":"9OjwAHd1hkAr"},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"How Does it Work?","marks":\[]}],"key":"69tOlTWYIwMN"}],"key":"RDIMALt6tEXW","meta":{"id":"how-does-it-work"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"The number of Bonus Pills is linked to the issuance of new USD0++. For each new USD0++ issued, 5 Pills are distributed and shared among all users who are eligible for the Bonus Pills.","marks":\[]}],"key":"51wfyFxJ9oTO"}],"key":"lK3jqYRuZdPf"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"For example, when 1 USD0++ is issued:","marks":\[]}],"key":"HLiw1jLegyCo"}],"key":"w4UEGmQhYnvh"},{"object":"block","type":"list-unordered","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"list-item","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"5 Pills are distributed to the holder of the USD0++.","marks":\[]}],"key":"97Lig6Ff4yas"}],"key":"1vDuZjQrCy1m"}],"key":"kMlzsdOPSJqb"},{"object":"block","type":"list-item","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"An additional 5 Pills are shared among holders of the USD0/USD0++ liquidity pool (LP) that provided USD0 single side.","marks":\[]}],"key":"dTeKvcXXHHJz"}],"key":"20BVNaKHPLwo"}],"key":"FVcCKWQyBkme"},{"object":"block","type":"list-item","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"An additional 5 Pills are shared among holders of USDC in the isolated lending market linked to Usual collateral.","marks":\[]}],"key":"OOp5O8cAwTSU"}],"key":"bYTLiRFmmfo1"}],"key":"nN5ZtWUKTMz7"}],"key":"n053ldoFk3oE"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"This bonus is therefore dependent on the demand for USD0++ and the number of users in a position. The fewer users, the greater the bonus. These figures are updated every 24 hours and take into account the 7-day average to smooth the projection.\n","marks":\[]}],"key":"ZOZGOAzL9Fvx"}],"key":"QlEI9YEfjvMu"},{"object":"block","type":"divider","isVoid":true,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"8Dqmf3m86vxy"}],"key":"bxPcDJECnLzm"},{"object":"block","type":"heading-1","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Final Boost","marks":\[]}],"key":"KLImiicI3rr7"}],"key":"c63apKlgoMQj","meta":{"id":"final-boost"}},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"What is the Final Boost?","marks":\[]}],"key":"ZUjcOjhvAz8u"}],"key":"Wh0JTVWV1e3U","meta":{"id":"what-is-the-final-boost"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"The Final Boost is a multiplier that you accumulate daily while you participate in the Usual protocol during the pre-launch phase. This multiplier enhances your rewards by boosting the Pills you earn, and it will be applied at the end of the pre-launch period.","marks":\[]}],"key":"d5gFUWXKWu5D"}],"key":"nz9rZhVaVEAn"},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"How Does It Work?","marks":\[]}],"key":"aPBHViaDA3CI"}],"key":"IKFcgClRlPAz","meta":{"id":"how-does-it-work-1"}},{"object":"block","type":"images","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"image","isVoid":true,"data":{"alt":"","ref":{"kind":"file","file":"8mhbRBUTM9oX2PQsIBkG"}},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"tI2NdpSRyvmu"}],"key":"UMTP28e2A3su","fragments":\[{"object":"fragment","nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"FnxTRC8jqwkX"}],"key":"JmIEE7SPXU9X"}],"key":"HW9Lb9b8bUmX","fragment":"caption"}]}],"key":"DF5zN0s6Bgrr"},{"object":"block","type":"list-unordered","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"list-item","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Start Accumulating","marks":\[{"object":"mark","type":"bold","data":{}}]},{"object":"leaf","text":": As soon as you interact with the Usual protocol and begin accumulating Pills, you start earning a multiplier on those Pills.","marks":\[]}],"key":"Jm3i53yRoxtK"}],"key":"Vky1QklbvAG9"}],"key":"HhilZ1lfNYPB"},{"object":"block","type":"list-item","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Daily Growth","marks":\[{"object":"mark","type":"bold","data":{}}]},{"object":"leaf","text":": The multiplier begins at 1X and increases by 2% daily. Over the course of four months, this compounding growth can increase your multiplier to over 10X.","marks":\[]}],"key":"3Q0wDikgKhof"}],"key":"KSWXmdZliGwq"}],"key":"bibDAOl3CSBm"},{"object":"block","type":"list-item","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Retroactive Application","marks":\[{"object":"mark","type":"bold","data":{}}]},{"object":"leaf","text":": At the end of the Pills campaign, the Final Boost multiplier is applied to all the Pills you've earned from the start, giving you a significant reward boost.","marks":\[]}],"key":"hB1X52VnHhlB"}],"key":"iMKKgSVYvwIi"}],"key":"ayKTlgWbQoWq"}],"key":"gc6azGd8t84A"},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Missed the Start? No Worries!","marks":\[]}],"key":"NlZ75Svl6HCG"}],"key":"ZPlxVlNlcjSi","meta":{"id":"missed-the-start-no-worries"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"If you didn’t join at the very beginning of the pre-launch phase, don’t worry! You can still maximize your boost by checking for new integrations and opportunities thought the catchup boost that allow you to catch up and earn the best possible boost for the day you joined.","marks":\[]}],"key":"fvSkt0HL3uD2"}],"key":"z7h2JxBKjuBW"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"By understanding and managing your Final Boost, you can significantly enhance your rewards and make the most of your participation in the Usual protocol. You can track all Pills issued by the protocol to date in the Drugstore section of the dApp.","marks":\[]}],"key":"8lFbjk7XbEez"}],"key":"B589IcKv0S3L"},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Grace Period","marks":\[]}],"key":"yYI9XstnUEzv"}],"key":"QmsUEPQ4dkrF","meta":{"id":"grace-period"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Be cautious with your positions in the protocol. If you withdraw your positions and don’t return within 7 days, your multiplier is at risk. To maintain and maximize your Final Boost, keep your positions active within the Usual protocol.","marks":\[]}],"key":"oL6mOa6vtNta"}],"key":"3K1a745oeUnO"},{"object":"block","type":"divider","isVoid":true,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"RjIRXgby5uzC"}],"key":"4dHxts1Z7a6E"},{"object":"block","type":"heading-1","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Boost Catchup","marks":\[]}],"key":"7Su6LGu9r52N"}],"key":"GMdr6WtzYgKq","meta":{"id":"boost-catchup"}},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"What is the Boost Catchup?","marks":\[]}],"key":"SruO78UO2x2z"}],"key":"ZtiUt900fcIA","meta":{"id":"what-is-the-boost-catchup"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Missed the launch of Usual or just discovered the protocol? No problem! Usual offers a temporary Boost Catchup feature, allowing you to make up for lost time and catch up on the Final Boost as if you had been accumulating it from the start of the protocol’s launch.","marks":\[]}],"key":"GSzYkZnTYyqg"}],"key":"wI5SXjYRX7g7"},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Who is Eligible?","marks":\[]}],"key":"JnvTsovoGBc0"}],"key":"987CzMs1iwrW","meta":{"id":"who-is-eligible"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Everyone is eligible for the Boost Catchup, but keep in mind that this bonus is temporary and linked to various integrations within the DeFi ecosystem. For instance, you might benefit from the boost on Morpho today and on Curve tomorrow. Since these opportunities are temporary, be sure to regularly check the dApp to stay informed about the available bonuses.","marks":\[]}],"key":"7OgRpRxi54n0"}],"key":"wPgKWiDL6yyc"},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"How Much is the Boost?","marks":\[]}],"key":"y9mlezhy3Jl8"}],"key":"vb9DGMdA7kfG","meta":{"id":"how-much-is-the-boost"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"By taking advantage of the Boost Catchup, you can receive the maximum boost currently available, allowing you to catch up on the time you missed and maximize your rewards. Usual reward for early participation or speed! You choose!","marks":\[]}],"key":"4tDjauoiNn2S"}],"key":"XuMz1zaq8J1u"}],"key":"Aw4IBp13yxOg","meta":{"id":"pre-launch-bonus"}},{"object":"block","type":"tabs-item","isVoid":false,"data":{"title":"Eligible Products"},"nodes":\[{"object":"block","type":"images","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"image","isVoid":true,"data":{"alt":"","ref":{"kind":"file","file":"CTosOf80Ly7vqVe8GFV8"}},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"pUwMmhYtnJv8"}],"key":"KAZ0Kp0k1DX9","fragments":\[{"object":"fragment","nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"AU0W6L1XUllm"}],"key":"eCgfGEeA3i8h"}],"key":"YeKhzoIxANae","fragment":"caption"}]}],"key":"4lfH15njrPPx"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Find all the current integration on the "Drugstore" section on the dAPP.","marks":\[]}],"key":"5NMnkIsD6HKq"}],"key":"Abj2DYAH17B8"}],"key":"GLeHaP4JtAP1","meta":{"id":"eligible-products"}},{"object":"block","type":"tabs-item","isVoid":false,"data":{"title":"Transparency & Tracking"},"nodes":\[{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"How are Pills Calculated?","marks":\[]}],"key":"4iMTsVJhl0o9"}],"key":"pnqIKnzzpECa","meta":{"id":"how-are-pills-calculated"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Pills are calculated off-chain to ensure efficiency, but all calculations are made public and can be verified to maintain transparency. You can find detailed information and track your progress in the "Drugstore" section of the Usual website. Additionally, you can check our dashboard to see the total number of Pills issued by the protocol so far, excluding the multiplier effects.","marks":\[]}],"key":"Orh1wJ4nGE3p"}],"key":"dKuDDMT94MZi"},{"object":"block","type":"images","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"image","isVoid":true,"data":{"alt":"","ref":{"kind":"file","file":"05tNg6w3TRHecqOE5pPL"}},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"6GzyO7mhSF31"}],"key":"J27jjTyabRgm","fragments":\[{"object":"fragment","nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Pills HUD on Usual dApp","marks":\[]}],"key":"oMX9m95clwKi"}],"key":"alzVTv9TDgvp"}],"key":"mKoV5SLUFDh7","fragment":"caption"}]}],"key":"aOIXs8iQxhYV"},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Commitment to Transparency","marks":\[]}],"key":"wTyucYQtU8qN"}],"key":"7b5XMRoCbY4Q","meta":{"id":"commitment-to-transparency"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"At Usual, we prioritize transparency for our users by providing a fast and clear pill count. We consistently display the rules and communicate updates through our social media channels or directly in the Drugstore section of the website. However, the integration process can sometimes be complex, resulting in some Pills being awarded retroactively. ","marks":\[]}],"key":"n7we5iUvCytG"}],"key":"MOozQjhqixrO"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Rest assured, these Pills will be credited to your account once the integration is complete, and you will continue to earn Pills while your positions are active.","marks":\[]}],"key":"APP8WHbbZcmt"}],"key":"OFb07fjp56L8"},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Reporting and Continuous Improvement","marks":\[]}],"key":"Lq3RdG7v6moM"}],"key":"FACnWtyXW58d","meta":{"id":"reporting-and-continuous-improvement"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"If you notice any discrepancies in your pill count, please report them to us on Discord or Telegram. We have upgraded and improved the process multiple times based on user feedback, and we appreciate the contributions from our community in helping us maintain accuracy and transparency. ","marks":\[]}],"key":"4sqNbfGt1Rqw"}],"key":"eGB58VMvJKuF"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Thank you for being an active part of the Usual community.","marks":\[]}],"key":"SaDKnPHVajH1"}],"key":"WhWOsOluAtQn"}],"key":"xlP5fW19OkY7","meta":{"id":"transparency-and-tracking"}}],"key":"pDDaSjHutGmJ","meta":{"id":"undefined"}}],"key":"Jvz5MGgBDdSf"}} # Referral Program {"id":"kGzaumlaRyBaNfi3G78S","title":"Referral Program","kind":"sheet","type":"document","urls":{"app":" Referral Program allows you to invite your friends and community to join Usual while earning additional rewards proportional to the number of Pills they earn. This mechanism is simple and valid throughout the entire Pills Campaign.","marks":\[]}],"key":"DBscZYLFRrKR"}],"key":"BJW7DNg9r80L"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"hfBjvRqSYL88"}],"key":"4GbPxI5A2pD0"},{"object":"block","type":"images","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"image","isVoid":true,"data":{"alt":"","ref":{"kind":"file","file":"ItuPgaK5aNnpzXqMsgfE"}},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"nTa86qVAXHCo"}],"key":"FZg2lx6BR6G4","fragments":\[{"object":"fragment","nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"1Tt4FavCk8Uf"}],"key":"OHUXTkacwsBJ"}],"key":"2AwmTPeUK9Hf","fragment":"caption"}]}],"key":"CYhwqc4agRZz"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Connect to the dApp and retrieve your referral link from the Hall Page or the Drugstore. Share this link, refer a friend, and earn 10% Bonus of all you referees pills.","marks":\[]}],"key":"hpaoXK30dNIO"}],"key":"AnTjzGQiWsCE"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Additionally, you can earn 1% or 0.5% from friends of friends. This includes all instant and daily Pills, along with their multipliers.","marks":\[]}],"key":"na4DRjSDtYkA"}],"key":"kNiSXXeyciEQ"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"You can find the rules behind:","marks":\[]}],"key":"H1cLptD1cWvM"}],"key":"Pw8KyjXKRaBb"},{"object":"block","type":"images","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"image","isVoid":true,"data":{"alt":"","ref":{"kind":"file","file":"UIPQ2Qgjc1ccrkuA1Y1x"}},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"MDhEXtbf6r45"}],"key":"KDOVVMsc4jjQ","fragments":\[{"object":"fragment","nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"GwZd4FQj7lid"}],"key":"7ath7clbugrf"}],"key":"Ql7h6FM6VYW0","fragment":"caption"}]}],"key":"TloDAiySdJQM"}],"key":"lcaoHNiCQbOz"}} # Community Bonus {"id":"8B5tQxBrgVTtvqbTdEyy","title":"Community Bonus","kind":"sheet","type":"document","urls":{"app":" pills campaign is a 4-month period where all users of the protocol accumulate pills that can be exchanged for USUAL tokens at the end of the period. During the period, numerous integrations will allow users to earn pills while combining this with other points or other tokens.","marks":\[]}],"key":"DvWq7EivhoNi"}],"key":"i64XnMEuMedn"},{"object":"block","type":"heading-1","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Introducing community bonus","marks":\[]}],"key":"9y3Ndhhzvwxv"}],"key":"L7Q19iP2Z1LC","meta":{"id":"introducing-community-bonus"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"As part of the pills campaign, Usual heavily relies on the different crypto farmer communities for its growth and expansion within the crypto ecosystem and different protocols. With this in mind, Usual will allow different communities to obtain a community bonus, allowing them to boost the number of tokens they are entitled to due to their strength in numbers and their support.","marks":\[]}],"key":"WCT2NkoHFXr0"}],"key":"rlEF3fgBgV7W"},{"object":"block","type":"heading-1","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Community bonus benefits","marks":\[]}],"key":"HNWbmyAjgXsz"}],"key":"VJ6gOBxfAK49","meta":{"id":"community-bonus-benefits"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"The community bonus will allow Usual to reach a larger audience of contributors through different communities and DAOs. Usual wants to create participation, neutrality, and engagement, and for this, a large number of people are needed. This allows community organizers and communities to benefit from an advantage due to their number but also from increased exposure as the boosts will be visible on the different interfaces and different Usual guides.","marks":\[]}],"key":"xEEnUxijTga9"}],"key":"WwBbyzYahe6b"},{"object":"block","type":"heading-2","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Specifications","marks":\[]}],"key":"S64bZuYXGcqa"}],"key":"JPxDP07uKg5m","meta":{"id":"specifications"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"At the Token Generation Event (TGE) of USUAL, tokens are allocated as follows:","marks":\[]}],"key":"Lhvwva60W51q"}],"key":"ZAbCbyd0QVVp"},{"object":"block","type":"list-unordered","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"list-item","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Pills will be converted in token for 7.5% of the Fully Diluted Valuation (FDV).","marks":\[]}],"key":"L3eGFne6EIOj"}],"key":"54xbts4k2yZC"}],"key":"kQvyaqLZ7ljY"},{"object":"block","type":"list-item","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"0.66% of the FDV will be minted and set aside in a 6 months vesting schedule for the DAO and Ecosystem development that will ultimatly be allocated to the bonus presented below. The DAO and Ecosystem tokens, equivalent to 0.66% of the FDV or 8.7% of the market cap at TGE, will be used as a bonus pool to incentivize members of the Turtle Club, Dewhales & Benmo communities.","marks":\[]}],"key":"wJC0KC1j9JPF"}],"key":"q8o5mK3w9j7X"}],"key":"vHhvfTRqv9CL"}],"key":"ZCAEwVxjMTja"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"","marks":\[]}],"key":"BC4eFcBHjOII"}],"key":"9dvwhQhsfRU2"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"If your community is interested in joining the "Community Bonus" program, please don't hesitate to contact our team.","marks":\[]}],"key":"8uYf8MBXrrdK"}],"key":"pSE9RU0FVrsa"}],"key":"NiYcmGBU8P83"}} # Base Interest Guarantee (BIG) {"id":"ALN1uTVYZdgS3eKQNOA1","title":"Base Interest Guarantee (BIG)","kind":"sheet","type":"document","urls":{"app":" is an enhanced T-Bill that allows users to benefit from the growth and success of the protocol. Unlike traditional models, USD0++ not only provides protocol revenues but also distributes ownership of the protocol through its innovative reward mechanisms. To ensure a minimum yield, USD0++ features a mechanism called Base Interest Guarantee (BIG).","marks":\[]}],"key":"gdfyzxigh0y1"}],"key":"gTrHod9AwmFM"},{"object":"block","type":"heading-1","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Base Interest Guarantee for Liquid Bond Holders","marks":\[]}],"key":"djaZDN0KmbLY"}],"key":"bcDFcleeCKTd","meta":{"id":"base-interest-guarantee-for-liquid-bond-holders"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"USD0++ holders benefit from an insurance mechanism that enables them to claim the native yield of the underlying asset under certain conditions. This insurance guarantees that, at a minimum, they will receive the yield of the RWA asset in the form of USD0. This yield is further boosted by the floating liquidity of non-locked USD0.","marks":\[]}],"key":"8oO0mzzzV4X7"}],"key":"Bfxv7NgEaaMT"},{"object":"block","type":"heading-1","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Eligibility","marks":\[]}],"key":"11gfXpuY0FJE"}],"key":"Y9fC09AmAisX","meta":{"id":"eligibility"}},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"USD0++ holders who wish to secure their yield must lock their USD0++ for a rolling period of 6 months. During this time, they cannot claim their yield in any form. If the user decides to unlock their USD0++ before the period ends, they forfeit access to the accumulated yield. At the end of the locking period, the user can choose between rewards in the form of $USUAL tokens or rewards in USD0 equivalent to the risk-free yield boosted by the floating liquidity.","marks":\[]}],"key":"SMmV28D3BV8W"}],"key":"hGBoRGApDB9N"},{"object":"block","type":"heading-1","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Example - USD0++ with 4 Years Maturity:","marks":\[]}],"key":"GCj4m8avJkMo"}],"key":"6jtahjXpasP7","meta":{"id":"example-usd0-with-4-years-maturity"}},{"object":"block","type":"list-unordered","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"list-item","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Native USUAL Token Rewards:","marks":\[{"object":"mark","type":"bold","data":{}}]},{"object":"leaf","text":" Typically, holders of the USD0 Liquid Bond Token, known as USD0++, receive rewards in the form of $USUAL tokens.","marks":\[]}],"key":"ZdTnq37mO2fR"}],"key":"6dv6rz2wxqNq"}],"key":"TdXKKw1euzxE"},{"object":"block","type":"list-item","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Locking USD0++ and Its Rewards:","marks":\[{"object":"mark","type":"bold","data":{}}]},{"object":"leaf","text":" USD0++ holders who wish to benefit from the Base Interest Guarantee (BIG) must lock their USD0++ for a period of 6 months. During this time, their USD0++ tokens are not liquid, and they do not receive any rewards. However, users can unlock their USD0++ at any time, but they will forfeit the accumulated rewards.","marks":\[]}],"key":"U1ZITBAvMRmk"}],"key":"knuEDBxCAIIH"}],"key":"tZcjNtjldDOu"},{"object":"block","type":"list-item","isVoid":false,"data":{},"nodes":\[{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Native Yield Insurance:","marks":\[{"object":"mark","type":"bold","data":{}}]},{"object":"leaf","text":" After the 6-month locking period, users have the option to claim their USD0++ yield either in $USUAL tokens or in USD0, which represents a risk-free yield directly from the treasury.","marks":\[]}],"key":"ZXWSSHoJlrUb"}],"key":"u8U0wTu4ncvR"}],"key":"JALeDtxWwbzO"}],"key":"ecPxpZEKEM04"}],"key":"TTRbYTnZOYHf"}} # Collateral Isolation from Usual Stability Loan {"id":"IHIbNyGJUsb0pLUULQ6L","title":"Collateral Isolation from Usual Stability Loan","kind":"sheet","type":"document","urls":{"app":" Usual Stability Loan does not directly affect USD0 or its underlying collateral","marks":\[{"object":"mark","type":"bold","data":{}}]},{"object":"leaf","text":". Instead, it allows users to deposit USD0++ and borrow USD0, as described ","marks":\[]}],"key":"WDiIVz9AuGTP"},{"object":"inline","type":"link","isVoid":false,"data":{"ref":{"kind":"page","page":"IHIbNyGJUsb0pLUULQ6L"}},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"here","marks":\[]}],"key":"eFDyr4KSb8Od"}],"key":"qhK409trOOlg"},{"object":"text","leaves":\[{"object":"leaf","text":".","marks":\[]}],"key":"v3EaS6cFoQhV"}],"key":"ODd5ZWjmsKVV"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"This borrowed USD0 comes from the USD0 that collateralizes USD0++. When users borrow, USD0 is withdrawn from USD0++ collateral, and in return, debt vault shares of USD0 back USD0++. These shares can be locked in the Usual Stability Loan until the borrowed USD0, along with accrued interest, is repaid.","marks":\[]}],"key":"sKTz6pJM1SJf"}],"key":"vDyWA390XWJb"},{"object":"block","type":"paragraph","isVoid":false,"data":{},"nodes":\[{"object":"text","leaves":\[{"object":"leaf","text":"Users can utilize the borrowed USD0 to gain leverage through USD0++ or redeem it for its underlying collateral. During redemption, the total supply of USD0 remains fully backed, ensuring no additional risk is introduced by the Usual Stability Loan.","marks":\[]}],"key":"foaY7cOkLKgN"}],"key":"me8NNQVaps7z"}],"key":"X3AgGekqZyd3"}}