ETH0 Synthetic

Introducing ETH0, The Smartest Way to Hold ETH

ETH0 is an Ethereum-pegged synthetic asset issued by the Usual Protocol, fully collateralized by Lido’s wrapped staked ETH (wstETH). In simple terms, 1 ETH0 is designed to always be worth roughly 1 ETH, backed by actual staked ETH reserves. This allows users – from DeFi natives to institutional investors – to maintain direct ETH exposure while capturing significantly higher staking yields than conventional methods. Like Usual’s USD0 stablecoin, ETH0 is fully transferable and permissionless, meaning anyone can mint or redeem it on-chain without restrictions.

Key Features of ETH0

• Yield Access: Holding ETH0 unlocks access to yield mechanisms, allowing users to claim yield in $USUAL tokens.

• 1:1 ETH Exposure: ETH0 is designed to tightly mirror ETH on a 1:1 basis, giving you full upside (and downside) exposure, while unlocking new yield opportunities. All without giving up your core wstETH position.

ETH0 Characteristics

• Liquidity and Composability: ETH0 maintains liquidity and composability within DeFi, similar to USD0 & USD0++.

• Transparency and Trust: Real-time reserve transparency is provided by each fund administrator, offering complete visibility.

• Fully Collateralized and redeemable anytime: ETH0 is fully backed by wstETH and builds on USD0’s proven model, keeping you exposed to ETH with redeemable, secure and trusted collateral.

• Higher Yield on ETH: Holding ETH0 lets you earn extra yield on your ETH position. The staking rewards from the collateral are distributed as USUAL governance tokens to ETH0 holders, boosting your overall return beyond the typical ~3.5% ETH staking yield. This means your ETH can work harder for you, capturing significantly higher yields than conventional staking or restaking strategies.