# FAQ
Common questions about Usual Protocol—answered clearly and concisely.
***
## General Questions
What is Usual Protocol?
Usual is a **secure, decentralized fiat stablecoin issuer** that redistributes ownership and governance to its community through the USUAL token.
The protocol aggregates tokenized **Real-World Assets (RWAs)**—primarily US Treasury Bills—from leading institutional providers and converts them into **permissionless, on-chain verifiable, composable** stablecoins.
Unlike traditional stablecoin issuers (e.g., Tether, Circle) that capture 100% of the yield generated from user deposits, Usual redistributes **100% of protocol value back to the community** — 30% to locked USUALx holders (weekly USD0 distributions) and 70% to the DAO treasury.
Why Usual?
Usual is built to address core issues in today’s stablecoin model:
1. **Revenue redistribution** — Tether and Circle generated over $10B in combined revenue in 2023 without sharing it with the users providing liquidity. Usual reverses this dynamic by distributing the majority of value to the community through the USUAL token.
2. **Transparent collateral** — USD0 is backed by on-chain verifiable US Treasury Bills. No opaque bank deposits and no periodic attestations—anyone can audit reserves in real time.
3. **No bank risk** — By using Treasury Bills instead of commercial bank deposits, Usual avoids the counterparty risk highlighted by the March 2023 Silicon Valley Bank collapse, when USDC depegged to \~$0.95.
4. **Community ownership** — USUAL token holders govern the protocol, control the treasury, and vote on collateral decisions. Users aren’t just customers—they’re owners.
5. **Scalability** — USD0 is backed by the deep, liquid T-Bill market, enabling scale beyond the constraints of crypto-collateralized designs.
Which blockchains is Usual deployed on?
Usual is deployed on **Ethereum** (primary chain), **Arbitrum**, **Base**, and **BNB Chain**.
Cross-chain interoperability is powered by **Chainlink CCIP** and **LayerZero**, enabling token transfers and unified liquidity across supported networks.
Have Usual’s contracts been audited?
Yes. Usual’s smart contracts have undergone **20+ audits** by leading security firms, including Cantina, Sherlock, Spearbit, Halborn, Hexens, and Paladin.
Audit reports are [publicly available](https://tech.usual.money/security-and-audits/audits). Usual also operates an active bug bounty program.
How can Usual scale?
Usual’s scalability is driven by:
* **Deep collateral market** — US Treasury Bills are among the most liquid assets globally, with trillions outstanding. USD0 can scale with this market.
* **Multi-collateral architecture** — The Multi Collateral Controller dynamically manages and diversifies collateral across multiple RWA providers (Hashnote, M0, Superstate, and others).
* **Multi-chain deployment** — USD0 and USUAL are available on Ethereum, Arbitrum, Base, and BNB Chain.
* **Composability** — USD0 and bUSD0 integrate with major DeFi protocols (Curve, Morpho, Pendle, Aave, Fira), expanding utility and distribution.
How does Usual secure and protect my deposit?
Deposits are protected through multiple layers:
* **Full collateralization** — Every USD0 is backed 1:1. No fractional reserves and no leverage.
* **Audited smart contracts** — 20+ audits, plus an active bug bounty program.
* **Institutional-grade custody** — Collateral is custodied by institutions such as BNY Mellon.
* **On-chain verifiability** — Reserve composition is visible on-chain in real time, without reliance on third-party attestations.
* **Insurance fund** — Funded from a portion of collateral yield to hedge potential collateral value loss.
* **No bank exposure** — The protocol avoids commercial bank deposit risk.
***
## How Usual Protocol Works
How does Usual Protocol work?
At a high level, Usual works in three steps:
1. **Deposit** — Deposit USDC or eligible tokenized RWAs (e.g., Hashnote’s USYC) to receive **USD0**, the protocol’s stablecoin.
2. **Earn** — Lock USD0 into **bUSD0** (the liquid bond token) to earn yield via daily USUAL rewards, or deposit into **sUSD0** for a savings-style product.
3. **Govern & stake** — Stake USUAL as **USUALx** to earn a share of protocol revenue (distributed weekly in USD0) and participate in governance.
Yield is generated from the T-Bill collateral backing USD0—real revenue from real assets (not token emissions alone).
What is USD0?
**USD0** is Usual’s core stablecoin: a permissionless, USD-pegged **Liquid Deposit Token (LDT)** backed 1:1 by US Treasury Bills and repurchase agreements. It is designed for payments, trading, and use as collateral across DeFi.
Key properties:
* **1:1 USD peg**, supported by full collateralization and arbitrage mechanisms
* **On-chain verifiable reserves**, with no reliance on monthly attestations
* **Permissionless**, with open minting, redemption, and usage
* **Composable**, integrating across Curve, Morpho, Aave, Pendle, and more
* **Multi-chain**, available on Ethereum, Arbitrum, Base, and BNB Chain
What is bUSD0 (formerly USD0++)?
**bUSD0** (bonded USD0, formerly USD0++) is Usual’s liquid bond token. Locking USD0 into bUSD0 creates a transferable, yield-bearing position that earns **daily USUAL** rewards.
Key properties:
* **Maturity:** June 11, 2028 — each bUSD0 becomes redeemable 1:1 for USD0
* **Liquid:** tradeable on secondary markets before maturity
* **Two-token minting:** depositing 1 USD0 produces **1 bUSD0** (bond) + **1 rt-bUSD0** (early-exit right)
* **Yield:** daily USUAL “coupon” payments
* **DeFi composable:** usable as collateral (e.g., Morpho) and yield-tradeable (e.g., Pendle)
What is the USUAL token?
**USUAL** is the protocol’s governance and revenue-sharing token. It represents ownership of **100% of protocol revenue** and is designed around cash flows from T-Bill yield.
Key properties:
* **Revenue-backed** — tied to real cash flows, not speculation alone
* **Governance** — votes on parameters, collateral types, and treasury management
* **Yield access** — stake as **USUALx** to receive weekly USD0 revenue distributions
* **Community-first** — **100% of protocol revenue** flows to the community (30% to locked USUALx, 70% to DAO treasury)
Supply cap: **3B USUAL**, projected to be fully distributed by **June 2028**.
***
## USD0 — Fiat USD Stablecoin
What is USD0?
USD0 is a stablecoin backed 1:1 by Real-World Assets (primarily US Treasury Bills). It provides a stable, transferable asset that is independent of traditional banking systems and usable across DeFi.
**Use cases:** payments, trading, DeFi collateral, yield generation (via bUSD0 or sUSD0), and cross-chain value transfer.
Why choose USD0 over other stablecoins?
| Feature | USD0 | USDC | USDT |
| ---------------------- | -------------------------------------------------------- | -------------------------- | ----------------- |
| **Collateral** | US Treasury Bills (on-chain) | Bank deposits + Treasuries | Mixed reserves |
| **Transparency** | Real-time on-chain verification | Monthly attestations | Quarterly reports |
| **Revenue sharing** | 100% to community (30% locked USUALx + 70% DAO treasury) | None | None |
| **Bank risk** | None | Yes (SVB exposure in 2023) | Partial |
| **Governance** | Community-driven | Corporate | Corporate |
| **Capital efficiency** | 100% (1:1 mint/redeem) | N/A | N/A |
USD0 provides **real-time reserve transparency**, eliminates bank counterparty risk, and redistributes value to the users who make the system possible.
How do I mint USD0?
You can mint USD0 in two ways:
1. **With USDC (most common)** — Deposit USDC via the Usual dApp. A Collateral Provider matches your deposit with eligible RWA collateral, and you receive USD0.
2. **With eligible RWAs** — Deposit tokenized Treasury Bill assets (e.g., USYC, M, or USTBL) for a 1:1 USD0 mint.
The dApp automatically routes orders to the best available execution—either via the primary minting engine or via secondary markets (e.g., Curve pools).
> **Note:** In the current phase, orders below **100,000 USD0** are typically routed to secondary markets (DEXs) for efficiency.
How do I redeem USD0?
USD0 is redeemable 24/7 at a **1:1 rate** (1 USD0 = $1 of collateral) via:
1. **Primary redemption** — Redeem USD0 through the protocol’s DaoCollateral contract for underlying tokenized Treasury Bills. You can then redeem those assets with RWA partners for other stablecoins or fiat.
2. **Secondary market** — Sell USD0 for USDC or other stablecoins on DEXs (Curve, Uniswap, aggregators) for immediate liquidity.
> **Note:** Direct collateral redemption may require registration with the issuing RWA partner.
What backs USD0?
USD0 is backed by short-duration, high-quality assets under Usual’s strict risk policy:
* **Primary collateral:** Hashnote USYC — a tokenized fund investing in reverse repos and US Government securities, custodied by BNY Mellon
* **Additional collateral:** M by M0, USTBL by Superstate, and USDC (for indirect minting)
* **Risk requirements:** fully collateralized (no leverage), invested in liquid Treasury Bills, on-chain verifiable, and with portfolio duration below \~4 months
Usual maintains **zero tolerance** for credit risk (no corporate debt) and FX risk (USD-only or fully hedged assets).
What sets USD0 apart as a high-quality stablecoin?
USD0 stands out through:
* **Real-time, on-chain transparency** — reserves can be verified at any time
* **Full collateralization** with US Treasuries — no fractional reserves
* **Community governance** over collateral and risk parameters
* **Revenue redistribution** — collateral yield flows back to the community, not a corporation
* **Isolated collateral** — backing assets are ring-fenced from custodians’ and tokenizers’ balance sheets for stronger bankruptcy protection
Where can I buy USD0?
USD0 is available via:
* **DEXs** — Curve, Uniswap, and other DEXs on Ethereum, Arbitrum, Base, and BNB Chain
* **Direct minting** — through the [Usual dApp](https://app.usual.money) using USDC or eligible RWA collateral
* **CEXs** — check current listings for availability
What can I do with USD0?
You can use USD0 to:
1. **Store value** — stable exposure with transparent, Treasury-backed collateral
2. **Provide liquidity** — supply USD0 to DEX pools (e.g., Curve) to earn fees and USUAL rewards
3. **Earn yield** — lock into **bUSD0** for daily USUAL rewards, or deposit into **sUSD0**
4. **Use as collateral** — borrow against USD0 on protocols like Morpho and Aave
5. **Trade** — use USD0 as a DeFi base asset
6. **Bridge cross-chain** — move USD0 across Ethereum, Arbitrum, Base, and BNB Chain
***
## bUSD0 — Liquid Bond Token
What is bUSD0?
bUSD0 is the liquid bond version of USD0. By locking USD0, you receive a transferable, yield-bearing token that earns daily USUAL rewards while remaining tradeable on secondary markets.
You can think of bUSD0 as an **enhanced T-Bill**: you gain exposure to Treasury-backed yield (via USUAL rewards) while maintaining liquidity through secondary markets.
> **Legacy note:** bUSD0 was originally called USD0++. Under governance proposal UIP-12, it was renamed to **bUSD0 (bonded USD0)**. All USD0++ holders were automatically migrated, no action required.
How does bUSD0 work?
Locking USD0 through the Usual dApp mints two tokens:
```
1 USD0 → 1 bUSD0 + 1 rt-bUSD0
```
* **bUSD0** — the locked, yield-bearing position. It is transferable and DeFi-compatible.
* **rt-bUSD0** — the early-exit right. It is required (together with bUSD0) to redeem USD0 before maturity.
**At maturity (June 11, 2028):**\
Each bUSD0 is redeemable **1:1 for USD0**, with no additional tokens required.
**Before maturity:**\
To redeem via the primary mechanism, you must recombine:
```
1 bUSD0 + 1 rt-bUSD0 → 1 USD0
```
What yield does bUSD0 earn?
bUSD0 holders earn **daily USUAL token coupons**, distributed automatically. Yield is funded by the underlying T-Bill collateral backing USD0.
* Daily USUAL rewards. Returns vary with the market price of USUAL and may exceed traditional T-Bill yields.
USUAL rewards accrue daily and can be claimed at any time. Unclaimed rewards continue accumulating.
Do I earn yield if I buy bUSD0 on the secondary market?
Yes. Whether you mint bUSD0 or buy it on the secondary market, you begin earning USUAL rewards as soon as you hold the token. Rewards accrue daily and can be claimed at any time.
What is the maturity date for bUSD0?
The current bUSD0 series matures on **June 11, 2028**. At maturity, **1 bUSD0 = 1 USD0**. Before maturity, bUSD0 can be traded at its market price on secondary markets.
How can I exit my bUSD0 position before maturity?
You can exit early in several ways:
| Method | How it works | Value received |
| -------------------------------------- | --------------------------------------------------- | ------------------------------ |
| **Recombine on the primary market** | Present **1 bUSD0 + 1 rt-bUSD0** | **Exactly 1 USD0** |
| **Sell bUSD0 on the secondary market** | Trade on DEXs (Curve, etc.) | Market price (may be below $1) |
| **Sell rt-bUSD0 separately** | Sell the early-exit right; keep bUSD0 and its yield | Market price of rt-bUSD0 |
| **Hold to maturity** | Wait until June 2028 | **1 USD0** (guaranteed) |
The DAO also sets a **floor price** for primary-market early redemption (currently **$0.92**), which supports a price floor for bUSD0 in secondary markets.
What are the risks of holding bUSD0?
Because bUSD0 is a locked token, it does not have a cost-free open arbitrage mechanism that keeps it tightly pegged to $1 at all times. As a result, its secondary-market price can trade below par before maturity.
Mitigations include:
* **Secondary market liquidity**, supported by LP incentives and concentrated liquidity strategies
* **Early-exit mechanisms**, including floor-price redemption and the rt-bUSD0 recombination design
* **Parity Arbitrage Right (PAR)** — in extreme scenarios, the DAO can unlock underlying USD0 from bUSD0 at 1:1 to restore the peg
* **DeFi composability** — bUSD0 can be used as collateral or leveraged via the Usual Stability Loan mechanism
At maturity, **1 bUSD0 always redeems for 1 USD0**. Price risk primarily affects early exits.
What happens if I don’t claim my USUAL rewards?
Unclaimed USUAL rewards continue accruing and remain claimable at any time. They do not expire.
***
## USUAL Token & Governance
What is the USUAL token?
USUAL is the governance and revenue-sharing token of Usual Protocol. It functions as:
* **Governance** — vote on protocol parameters, collateral types, and treasury management
* **Revenue claim** — stake as **USUALx** to receive weekly protocol revenue distributions in USD0
* **Incentives** — distributed daily to bUSD0 holders, liquidity providers, and other active participants
* **Disinflationary emissions** — fewer tokens emitted per $ of TVL as the protocol grows
USUAL is designed to be different from typical governance tokens because its economics are anchored by **real cash flows** from T-Bill yield.
How can I earn USUAL tokens?
You can earn USUAL by:
1. **Holding bUSD0** — receive daily USUAL coupon payments
2. **Providing liquidity** — earn USUAL incentives (plus fees) in USD0, bUSD0, or USUAL pools
3. **Staking USUAL as USUALx** — receive **\~22% of daily USUAL emissions** as anti-dilution rewards, plus weekly USD0 revenue distributions (locking required)
4. **Participating via partners** — earn USUAL through integrations with partner DeFi protocols
What role do USUAL token holders play in governance?
USUAL holders govern key protocol decisions, including:
* **Protocol parameters** — fees, emission rates, collateral ratios, and other system variables
* **Collateral decisions** — onboarding/removal of RWAs, exposure limits, risk settings
* **Treasury management** — allocations, strategies, and revenue distribution policies
* **New asset onboarding** — introduction of future products (e.g., ETH0, EUR0)
Governance happens on-chain via **UIPs (Usual Improvement Proposals)**.
How can I participate in governance?
To participate:
1. **Hold USUAL** — USUAL and USUALx provide voting rights
2. **Stake as USUALx** — increases participation and qualifies you for revenue distributions
3. **Vote on proposals** — via the governance portal using the voting power per token rules
4. **Submit proposals** — eligible stakeholders can submit UIPs for community review
***
## Getting Started
How do I get started with Usual Protocol?
1. **Connect your wallet** in the [Usual dApp](https://app.usual.money).
2. **Get USD0** — mint with USDC, or buy on secondary markets (Curve, Uniswap).
3. **Earn yield** — lock USD0 into **bUSD0** for daily USUAL rewards, or deposit into **sUSD0**.
4. **Stake USUAL** — stake as **USUALx** to earn protocol revenue and participate in governance.
How do I deposit assets into Usual Protocol?
Use the **Usual Swap** section of the dApp:
* **USDC** — deposit USDC and receive USD0 via the mint engine (matched by Collateral Providers) or via secondary-market routing.
* **Eligible RWAs** — deposit tokenized T-Bill assets (USYC, M, USTBL) directly for 1:1 USD0 minting.
The dApp automatically routes your transaction to the best available rate.
How do I convert USD0 into bUSD0?
In the Usual dApp, lock USD0 to mint bUSD0 and begin earning daily USUAL rewards. You can also buy bUSD0 on secondary markets—either way, rewards accrue automatically while you hold the token.
How do I withdraw my assets?
You can exit at any time:
* **USD0** — redeem 1:1 for underlying RWA collateral via the protocol counter (registration with the RWA partner may be required), or sell on secondary markets for USDC/USDT.
* **bUSD0** — sell on secondary markets, recombine with rt-bUSD0 for 1:1 USD0 redemption, or hold until maturity (June 2028) for a guaranteed 1:1 redemption.
* **USUALx** — unstake to receive USUAL at the current (appreciated) exchange rate. **Note:** a **10% unstaking fee** may apply.
***
## Security and Governance
How is the security of my assets ensured?
Usual uses a layered security model:
* **20+ smart contract audits** by Cantina, Sherlock, Spearbit, Halborn, Hexens, Paladin, and Blackthorne
* **Bug bounty program** to incentivize responsible disclosure
* **Full collateral backing** with US Treasury Bills (no leverage, no fractional reserves)
* **Institutional-grade custody** (BNY Mellon for primary collateral)
* **On-chain monitoring** with real-time alerts for collateral deviations
* **Insurance fund** to hedge potential collateral value loss
How does Usual protect my deposit?
Deposits are held passively in audited smart contracts. They are not rehypothecated, leveraged, or exposed to additional financial risk.
Collateral remains isolated from Usual’s balance sheet and is ring-fenced in bankruptcy-remote structures at the tokenizer level. Multiple security audits help ensure contract integrity.
***
## Earning and Rewards
How can I earn USUAL tokens?
You can earn USUAL through multiple activities:
| Activity | Reward type |
| --------------------------------------------------- | ----------------------------------------------------------------------- |
| **Hold bUSD0** | Daily USUAL coupon payments |
| **Provide liquidity** (USD0, bUSD0, or USUAL pools) | USUAL LP rewards + trading fees |
| **Stake USUAL as USUALx** | \~22% of daily USUAL emissions + weekly USD0 revenue (locking required) |
| **Lock USUALx** (1–12 months) | Enhanced revenue share via Revenue Switch |
Because emissions are disinflationary, earlier participation generally earns more USUAL per dollar deposited.
What is the Revenue Switch?
The Revenue Switch distributes real protocol revenue (from T-Bill yield) to locked USUALx stakers:
* **Activated:** January 13, 2025
* **Distribution:** weekly, in USD0
* **Estimated revenue:** \~$5.5–6M per year
* **Eligibility:** only **locked USUALx** positions held for the full weekly epoch (**Monday–Sunday UTC**)
This makes USUAL a **cash-flow-generating asset**, linking protocol growth to staker returns.
***
## Partnerships and Integration
Who are Usual Protocol’s partners?
Usual works with partners across DeFi and traditional finance:
* **RWA providers:** Hashnote (USYC), M0 Foundation, Superstate (USTBL), Spiko (euTBL)
* **DeFi protocols:** Curve, Morpho, Pendle, Aave, Fira, Contango
* **Cross-chain infrastructure:** Chainlink (CCIP), LayerZero/Stargate
* **Investors:** Binance Labs, Kraken Ventures, Galaxy Digital, IOSG Ventures, OKX Ventures
How can I use Usual assets with partner protocols?
USD0 and bUSD0 are designed to be composable across DeFi:
* **Curve** — provide liquidity in USD0/USDC or USD0/bUSD0 pools
* **Morpho** — use USD0 or bUSD0 as lending collateral
* **Pendle** — separate and trade yield and principal components of bUSD0
* **Aave** — use USD0 as collateral for borrowing
* **Fira** — access leveraged bUSD0 positions via the UZR (Usual Zero Rate) lending market
You can access many of these integrations through the Usual dApp or partner interfaces.
What are the future plans for asset integration?
Usual’s roadmap extends beyond USD products:
* **EUR0** — EUR-denominated stablecoin backed by high-quality Eurozone assets (in development)
* **ETH0** — an ETH-denominated product backed by Liquid Staking/Restaking Tokens (discovery phase completed)
* **Additional RWA providers** — ongoing diversification via governance
* **USUAL Mobile App** — mobile interface with multi-currency accounts, IBAN, credit card, and yield vaults (V2 roadmap)
* **USUAL App-Chain** — dedicated blockchain for hosting infrastructure and enforcing compliance
All new integrations are governed by the community.
***
## Addressing Current Issues
How does Usual address the problems in the current stablecoin market?
Usual targets three major problems:
1. **Value extraction** — traditional issuers capture billions in revenue from user deposits while returning nothing. Usual redistributes 100% of value — 30% to locked USUALx holders and 70% to the DAO treasury.
2. **Opacity** — USDT and USDC rely on periodic reports. USD0 provides real-time, on-chain verifiable reserves.
3. **Bank risk** — the March 2023 SVB crisis showed how bank-held collateral can become impaired overnight. Usual uses Treasury Bills to eliminate commercial bank counterparty risk.
What actions is Usual taking to promote transparency and fairness?
* **On-chain collateral verification** — real-time reserve visibility without third-party attestations
* **Community governance** — USUAL holders control collateral decisions, risk parameters, and treasury policy
* **Public audit reports** — 20+ audits available to review
* **100% DAO ownership** — all protocol revenue flows to the community (30% locked USUALx + 70% DAO treasury)
* **Revenue Switch** — weekly revenue distributions create accountability through verifiable cash flows
***
## Troubleshooting and Support
What should I do if I encounter an issue?
1. Check the [Usual documentation](https://docs.usual.money) and [technical docs](https://tech.usual.money).
2. Ask in official community channels (Discord, Telegram).
3. For transaction issues, confirm your wallet connection and that you’re on a supported network (Ethereum, Arbitrum, Base, or BNB Chain).
4. If the issue persists, contact support through official channels.
> ⚠️ **Security reminder:** Usual team members will never DM you first or ask for your private keys or seed phrase.
How can I contact Usual Protocol support?
* **Discord:** [discord.gg/tempusual](https://discord.gg/tempusual)
* **Telegram:** [t.me/UsualCommunity](https://t.me/UsualCommunity)
* **X (Twitter):** [@UsualMoney](https://x.com/UsualMoney)
* **Docs:** [docs.usual.money](https://docs.usual.money)
Where can I find the latest updates and announcements?
* **Blog:** [usual.money/blog](https://usual.money/blog)
* **X (Twitter):** [@UsualMoney](https://x.com/UsualMoney)
* **Telegram:** [t.me/UsualCommunity](https://t.me/UsualCommunity)
* **Governance forum:** proposal discussion and voting updates
* **Dune dashboards:** real-time protocol metrics
***
## Feedback and Community
How can I provide feedback about the protocol?
You can share feedback through:
* **Discord:** [discord.gg/tempusual](https://discord.gg/tempusual) (dedicated channels)
* **Telegram:** [t.me/UsualCommunity](https://t.me/UsualCommunity)
* **Governance proposals:** submit UIPs for changes you want to see
* **Community calls:** join regular community sessions
Community feedback directly shapes the protocol.
How can I get involved with the Usual community?
* Join discussions on [Discord](https://discord.gg/tempusual) and [Telegram](https://t.me/UsualCommunity)
* Participate in governance by staking USUAL and voting on proposals
* Provide liquidity to support ecosystem growth
* Follow updates on [X](https://x.com/UsualMoney) and the [blog](https://usual.money/blog)
* Contribute to governance forum discussions
* Track protocol data on community-built [Dune dashboards](https://dune.com)
Active participation is how users become owners—not just customers.