# 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. --- # 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/uzr.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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