ETH0
ETH0: An ETH-Pegged Synthetic Backed by wstETH
ETH0 is an Ethereum-pegged synthetic asset issued by Usual Protocol, fully collateralized 1:1 by Lido’s wrapped staked ETH (wstETH). In practical terms, 1 ETH0 is designed to track ~1 ETH, backed by actual staked ETH reserves. This lets users, from DeFi natives to institutions, maintain direct ETH exposure while accessing additional protocol incentives on top of conventional staking returns.
Like Usual’s USD0 stablecoin, ETH0 is permissionless and fully transferable: anyone can mint or redeem on-chain without restrictions. ETH0 is the second Liquid Deposit Token (LDT) in the Usual ecosystem, extending the same infrastructure that powers USD0 into the ETH-denominated asset class.
Key Features
Yield Access (via USUAL) Holding ETH0 unlocks yield mechanisms that allow users to claim yield in $USUAL tokens. Staking rewards generated by the underlying wstETH collateral are redistributed as USUAL governance tokens, increasing effective returns beyond the typical ~3.0–3.5% ETH staking yield.
1:1 ETH Exposure ETH0 is designed to tightly mirror ETH on a 1:1 basis, giving holders full ETH upside (and downside) while unlocking additional yield pathways—without giving up core wstETH exposure.
Permissionless & Composable ETH0 follows the same LDT model as USD0: permissionless on-chain minting/redemption and seamless integration across DeFi for lending, liquidity provision, and yield strategies.
ETH0 Characteristics
Liquidity and Composability ETH0 maintains full liquidity and composability within DeFi, following the same model as USD0 and bUSD0. It can be used across lending markets, DEX liquidity pools, and yield protocols.
Transparency and Trust Real-time reserve transparency is provided by each fund administrator, offering complete on-chain visibility into the collateral backing every ETH0 token.
Fully Collateralized; Redeemable Anytime ETH0 is fully backed by wstETH and builds on USD0’s proven collateral model. There is no fractional reserve: every ETH0 is backed 1:1.
Higher Yield on ETH (USUAL Emissions) The staking rewards from the wstETH collateral are distributed as USUAL governance tokens to ETH0 holders, boosting total returns beyond conventional staking or restaking strategies.
How ETH0 Fits into Usual’s Architecture
ETH0 is the second Liquid Deposit Token (LDT) built on the Usual Collateral Bridge Infrastructure (UCBI)—the same foundational layer that powers USD0. The litepaper defines the LDT framework as extensible to multiple asset classes:
USD0
US Treasury Bills (USYC, M, USDtb)
Live
ETH0
Liquid Staking Tokens (wstETH)
Live
EUR0
Eurozone sovereign assets
Live
USD0a
Cash & Carry Strategy
Live
Because ETH0 shares core infrastructure with USD0, it inherits the same minting/redemption mechanics, oracle system, collateral controller, and governance framework already battle-tested in production.
How ETH0 Works
Minting & Redemption
ETH0 uses the same 1:1 minting and redemption framework as USD0:
Direct minting: deposit wstETH and receive ETH0 at par.
Redemption: return ETH0 and receive the underlying wstETH collateral.
Secondary markets: ETH0 can be traded on DEXs for immediate liquidity.
The UCBI layer bridges permissioned and permissionless users. Collateral providers are economically incentivized via USUAL token rewards, using the same infrastructure as USD0.
Contract Addresses
Summary
Asset Type
Ethereum-pegged Liquid Deposit Token (LDT)
Collateral
Lido wstETH (1:1 backing)
Native Yield
~3.0–3.5% APR (ETH staking)
USUAL Yield
Additional USUAL token emissions on top of native staking yield
Minting
Permissionless, 1:1 deposit of wstETH
Redemption
1:1 withdrawal of wstETH at any time
Bond Variant
bETH0 (Liquid Bond Token for enhanced yield)
Composability
Full DeFi integration (lending, DEXs, yield protocols)
Governance
Collateral types and parameters governed by USUAL DAO
Note on Enrichment (KB)
This draft references “Enrich with ETH0 technical details… from the KB.” No KB content was provided in the prompt, so the text above preserves and clarifies the existing technical content without adding new, unverified details. If you share the KB excerpts/links, I can incorporate them while keeping GitBook-compatible markdown.
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