# 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. --- # 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/usd0a.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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