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
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:
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)
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:
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
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:
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:
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.
Borrow asset
USD0
Borrow rate
0% fixed APR (50 bps base fee)
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:
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
Minting fee
0 bps
No fee to lock USD0 into bUSD0
USL base borrowing fee
50 bps
Reducible to 10 bps for USUAL holders/lockers
Network gas
Variable
Standard Ethereum/Arbitrum gas costs apply
Smart Contract Addresses
bUSD0 Token
Ethereum
0x35D8949372D46B7a3D5A56006AE77B215fc69bC0
Arbitrum
0x2B65F9d2e4B84a2dF6ff0525741b75d1276a9C2F
rt-bUSD0 (Right Token)
Ethereum
0x82DCA22b48B14DE38ccf83B03330120c4b8acFe9
Related Contracts (Ethereum)
USD0
0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5
USUAL
0xC4441c2BE5d8fA8126822B9929CA0b81Ea0DE38E
Distribution
0x75cC0C0DDD2Ccafe6EC415bE686267588011E36A
Key Risks
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-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: https://docs.usual.money/usual-products/yield-products/usd-products/bond-usd0
UZR — Usual Zero Rate: https://docs.fira.money/products/usual-zero-rate-uzr
Security & Audits: https://tech.usual.money/security-and-audits/audits
Contract Deployments: https://tech.usual.money/smart-contracts/contract-deployments
Etherscan — bUSD0: https://etherscan.io/token/0x35D8949372D46B7a3D5A56006AE77B215fc69bC0
Etherscan — rt-bUSD0: https://etherscan.io/token/0x82DCA22b48B14DE38ccf83B03330120c4b8acFe9
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.
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