EUR0

EUR0 is the euro-denominated stablecoin of the Usual ecosystem. It is collateralized by high-quality European sovereign bonds via euTBL (Spiko EU T‑Bills Money Market Fund). EUR0 is designed as the euro counterpart to USD0: a settlement asset in EUR (€) that is composable in DeFi and built on stable underlying assets to maximize security.

EUR0 uses the same stablecoin architecture as USD0, bridging permissioned and permissionless access to tokenized real-world assets (RWAs). While USD0 is backed by US Treasury Bills, EUR0 is backed by Eurozone T‑Bills (France, Germany, and other Eurozone sovereign issuers), supporting Usual’s multi-currency vision.

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Mint & Redeem

EUR0 supports two minting/redemption routes:

• Permissionless (via EURC): Mint/redeem at 1 EUR0 = €1 EURC, instantly within available euTBL/EURC liquidity, via the Swapper Engine.

• Permissioned (via euTBL): Mint/redeem at 1 EUR0 = €1 euTBL, with unlimited capacity for eligible (allowlisted) addresses.

Direct path (permissioned): euTBL → EUR0

Use this path if you are eligible to interact with Spiko’s permissioned contracts.

• Mint: Deposit euTBL to mint EUR0 at par (€1 euTBL = 1 EUR0).

• Redeem: Burn EUR0 to receive euTBL at par, minus a 3 bps redemption fee (1 EUR0 = €1 euTBL − 3 bps).

• KYC/KYB: Access to Spiko’s Teller/Permission Manager contracts is restricted to allowlisted addresses. Institutional use requires KYC/KYB.

This mirrors the USD0 architecture: permissioned participants (e.g., institutional users, accredited investors) can mint/redeem directly against the underlying collateral through the protocol’s DaoCollateral-equivalent contract.

Indirect path (permissionless): EURC → EUR0 via the Swapper Engine

This path enables retail and DeFi-native users to access EUR0 without holding euTBL directly.

• Mechanism: The Swapper Engine orchestrates the conversion: EURC → euTBL → EUR0 (on-chain order mechanism, similar to the USD0 ↔ USDC implementation).

• Execution model: Non-atomic (may not settle in the same transaction):

  • T0: Instant processing within the limits of available EURC and euTBL liquidity.

  • T+1 to T+5: Possible if buffers/loopers are empty. The dApp shows pending order, queue position, and Looper liquidity. Secondary markets (Spiko ATM v2, DEX pools) can be used as alternatives.

• Cancellation & availability:

  • Cancelability: Orders can be cancelled as long as they are not executed.

  • UI states: Pause, cap reached, or insufficient collateral are clearly indicated.

  • Notification: Users are notified upon execution.

In this flow, a Collateral Provider (CP) supplies the underlying RWA collateral on the user’s behalf, as in the USD0/USDC path.

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Secondary Liquidity

EUR0 is also tradable on secondary markets. As deployment expands, liquidity will be incentivized against other assets in the Usual ecosystem, especially USD0, to support an on-chain FX market.

• Target pools: EUR0/EURe, EUR0/USD0

The EUR0/USD0 pool is central to Usual’s long-term plan to build clearFX (described in the V2 roadmap): an on-chain currency conversion layer enabling euro-to-dollar swaps within the ecosystem. This supports the protocol’s broader ambition to become a DeFi Fintech offering multi-currency accounts and payment infrastructure.

Important: Usual Protocol does not guarantee secondary market liquidity or the EUR0 peg on secondary venues. Peg stability relies on arbitrage between primary market mint/redemption (at par) and secondary market pricing, consistent with the USD0 stability model.

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Collateral & Reserves

Reserve asset: euTBL (Spiko)

Property	Detail
Asset	euTBL (Spiko EU T-Bills Money Market Fund)
Type	Short-term EUR money market fund (VNAV)
Underlying	Euro area T-Bills (France, Germany, etc.)
Maximum maturity	< 6 months
Average duration	< 60 days
NAV publication	Daily, on-chain (Chainlink oracle) and at official venues
Auditor	PwC
Smart contract audit	Trail of Bits
Regulatory status	Spiko is approved and supervised
Access control	ERC-20 with allowlist/KYC management (Permission Manager)

Implication for EUR0: Each EUR0 in circulation corresponds to €1 of euTBL value, measured at NAV and managed through the mint/redeem flows described above.

Collateral eligibility

EUR0 follows the same due diligence framework as USD0, adapted to Eurozone assets:

• Fully collateralized (1:1): No leverage and no fractional reserves. Every EUR0 is backed by euTBL at par value.

• Low risk: Exposure is limited to sovereign bonds from high-quality Eurozone issuers.

• Transparent: Collateral is verifiable:

  • On-chain via Chainlink price feeds

  • Off-chain via PwC audits and daily NAV publication

• Liquid: Short maturity profile (< 6 months, average duration < 60 days) aligns with Usual’s portfolio duration threshold for LDTs.

• Zero FX risk: Collateral is entirely EUR-denominated, consistent with Usual’s zero-tolerance FX risk policy.

• Zero credit risk (policy): Holdings are restricted to Eurozone sovereign debt; corporate debt is prohibited.

Spiko as collateral provider

Spiko is the tokenizer for EUR0’s collateral, analogous to Hashnote’s role for USD0. Usual’s tokenizer evaluation process covers:

• Structuring & regulation: Spiko operates under regulatory supervision with a clear legal framework for tokenized securities.

• Asset protection: Assets are ring-fenced in the event of Spiko bankruptcy.

• Fee structure: Fees are designed to remain reasonable and not materially erode returns.

• Redemption process: Prompt and straightforward; the 3 bps redemption fee is the only cost on the direct path.

• Security: Contracts audited by Trail of Bits, with ERC-20 allowlist/KYC management via a Permission Manager.

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V2 vision: multi-currency accounts

EUR0 is a core component of the V2 roadmap, which envisions a USUAL Mobile App as a single interface for:

• Multi-currency accounts (USD0 & EUR0)

• USUAL IBAN for traditional banking integration

• clearFX for on-chain EUR ↔ USD conversion via EUR0/USD0 pools

• USUAL Credit Card supporting both euro and dollar denominations

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EUR0 vs. USD0: Key Differences

Feature	EUR0	USD0
Currency peg	€1.00 (Euro)	$1.00 (US Dollar)
Collateral	Eurozone sovereign T-Bills (euTBL)	US Treasury Bills (USYC, M, USDtb)
Primary tokenizer	Spiko	Hashnote
Indirect mint asset	EURC	USDC
Redemption fee	3 bps	Varies by governance
Regulatory framework	EU-supervised (Spiko)	CIMA/CFTC (Hashnote)
NAV oracle	Chainlink (daily)	On-chain real-time
Average duration	< 60 days	< 0.33 years (~120 days)

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Risk Considerations

EUR0 inherits Usual’s risk framework, with Eurozone-specific considerations:

• Interest rate risk: Mitigated by short average duration (< 60 days), well within Usual’s 0.33-year portfolio duration threshold.

• Sovereign credit risk: Diversified across multiple Eurozone issuers (France, Germany, etc.), all with high credit ratings.

• Counterparty risk: Spiko is regulated, audited by PwC, and its smart contracts are audited by Trail of Bits. Assets are ring-fenced against Spiko bankruptcy.

• Liquidity risk: The short-term VNAV structure and Spiko’s redemption infrastructure support timely exits.

• Secondary market risk: The secondary-market peg is not guaranteed; stability depends on arbitrage between primary and secondary markets (as with USD0).