# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.usual.money/resources-and-ecosystem/fact-sheets/usual-products/busd0.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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