Bond USD0

Bond USD0 token (bUSD0) is the bonded, yield-bearing mode of USD0 stablecoin. It locks USD0 until a fixed maturity date while distributing USUAL rewards every date until the maturity

Each new bUSD0 minted on the primary market is issued together with rt-bUSD0, a separate Redemption Token that represents the right to exit bUSD0 early at par. rt-bUSD0 isolates and tokenizes the early-exit right.

Since the latest changes introduced by UIP-12, legacy USD0++ holders automatically become bUSD0 holders, continue to earn USUAL, and can purchase rt-bUSD0 on the market if they want early-exit optionality.

Key Facts

• Underlying: bUSD0 is backed 1:1 by USD0 locked until maturity.

  • Current series matures on 11 June 2028.

• Design (bUSD0): Non-rebasing, fixed-notional position.

  • Always redeemable 1:1 into USD0 at maturity.

• Design (rt-bUSD0): Pure redemption right on bUSD0.

  • No yield, no governance, fully tradable.

• Access: Permissionless mint and redemption via the dApp.

• Yield Source (bUSD0): Daily USUAL coupon distributed to bUSD0 holders.

• Minting:

  • 1 USD0 → 1 bUSD0 + 1 rt-bUSD0 (primary market).

  • Legacy USD0++ are simply renamed bUSD0 (no rt-bUSD0 issued retroactively).

• Early Redemption: 1 bUSD0 + 1 rt-bUSD0 → 1 USD0 (before maturity).

  • Both tokens are burned on redemption.

• Maturity Redemption: At maturity, bUSD0 → USD0 at a 1:1 rate without rt-bUSD0.

• Redemption Cycle: Instant on-chain redemption, subject to protocol and liquidity conditions.

Benefits

• Separation of yield and liquidity: bUSD0 captures USUAL rewards and long-term carry; rt-bUSD0 isolates the early-exit right.

• Market-based exit liquidity: Users who value flexibility buy rt-bUSD0; users comfortable with lock-up sell rt-bUSD0 and capture a premium.

• Composability: rt-bUSD0 and bUSD0 are standard ERC-20 tokens, enabling DEX pools, structured products, and integrations with other DeFi protocols.

• Transparent mechanics: Redemption and minting follow simple, on-chain rules:

  • 1 USD0 → 1 bUSD0 + 1 rt-bUSD0

  • 1 bUSD0 + 1 rt-bUSD0 → 1 USD0

  • bUSD0 → 1 USD0 at maturity

• User choice: Users can choose between:

  • maximum yield (sell rt-bUSD0),

  • maximum flexibility (keep rt-bUSD0),

  • or a mix, depending on their liquidity needs.

bUSD0 mint

1. Mint bUSD0 + rt-bUSD0: Convert USD0 into bUSD0 via the dApp. For each USD0 deposited, the protocol mints:

   • 1 bUSD0 (locked position earning USUAL), and

   • 1 rt-bUSD0 (early-exit right).

2. Choose your exposure:

   1. Flexible: Hold both bUSD0 and rt-bUSD0 to keep full flexibility.

   2. Bonded: Or sell rt-bUSD0 on secondary markets to enhance effective yield while committing to the lock.

3. Accrue yield: While bUSD0 is locked, it earns USUAL coupons daily, reflecting the protocol’s incentive schedule.

bUSD0 redeem

1. Before maturity:

   1. combine bUSD0 + rt-bUSD0 to redeem 1:1 into USD0.

   2. sell on secondary market or use primary market floor price define by the DAO governance. (currently 0.92 USD0 per USD0++)

2. At maturity: redeem bUSD0 alone 1:1 into USD0, regardless of rt-bUSD0.