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
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):
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)
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:
DAO enables migration capacity
bUSD0 collateral is withdrawn from Euler
bUSD0 is posted as collateral on UZR
USD0 is borrowed on UZR at up to 88% LTV
Borrowed USD0 repays the Euler debt
Euler loan token is burned
No additional protocol fees apply (gas costs remain).
Fees
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)
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
USD0 (Loan Token)
0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5
bUSD0 (Collateral Token)
0x35D8949372D46B7a3D5A56006AE77B215fc69bC0
Market Identifier
Market ID
0xA597B5A36F6CC0EDE718BA58B2E23F5C747DA810BF8E299022D88123AB03340E
Interest rate (per-second)
0.1e16 / uint256(365 days) == 31709791
Key Risks
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
Fira App (UZR)
https://app.fira.money
UZR Documentation
https://docs.fira.money/products/usual-zero-rate-uzr
UZR Simulator
https://simulator.fira.money
Contracts & Audits
https://docs.fira.money/resources-and-ecosystem/contracts-and-audits
Dune Dashboard
https://dune.com/usual_team/fira
DeFiLlama
https://defillama.com/protocol/fira
UIP-16 (U0R as USD0 Collateral)
https://snapshot.box/#/s:usualmoney.eth/proposal/0x2a5956511f74a948f523295af642378d0f57e1904c87b17e62c1c2ae2b827761
UIP-18 (UZR Launch)
https://snapshot.box/#/s:usualmoney.eth/proposal/0x16dd10633ab146c51e8a6eae58be4b475560707fd694e82169286896170a3f11
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.
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