USD0 Collateral: Adhering to Usual's Strict Risk Policy
USD0 collateral adheres to Usual's stringent risk policy, being backed exclusively by secure, short-term assets such as US Treasury Bills via overnight repos. Usual Labs has meticulously selected the initial collateral through comprehensive due diligence of market participants to mitigate any counterparty or default risks. This approach offers USD0 holders a security framework that surpasses competitors.
Initial Collateral Partnership with Hashnote
Usual's first partner for initial collateral will be Hashnote. The goal of Usual is to eventually decentralize USD0, diversifying holdings and further minimizing risks. Future collateral options will be subject to governance decisions.
What is USYC?
USYC is the on-chain representation of the Hashnote International Short Duration Yield Fund Ltd. ("SDYF"). SDYF invests primarily in reverse repo and U.S. Government backed securities.
Why USYC
Being invested in overnight repo means minimized market risk, duration risk, and credit risk -- as good as being in a U.S. Treasury Money Market fund, but with the transaction speed, transparency, and composability of being an ERC-20.
USYC lets you earn short-term risk free returns. Assets are deployed in reverse repo, with some allocated to T-Bills, to ensure maximum liquidity and minimum duration risk.
Liquidity
Mint / redeem time T+0 to T+1 into USDC or PYUSD.
Atomic on-chain instant mint / redeem available.
On-chain mint available only during “market hours”.
On-chain redemption available at any time but for limited size.
Safety
No credit intermediaries.
No loans to anyone.
Fully regulated by CIMA.
Direct access to segregated custodial account.
Transparency
Assets and token price published via oracle feed.
All fees such as service, redemption, and custodian fees are fully disclosed.
ERC-20 verified on etherscan.
Fund Management
USYC is run by Hashnote, the premier on-chain institutional asset manager backed by the partners of DRW. Hashnote has an experienced in-house Fixed Income Team, with a track record of delivering consistent, risk-adjusted returns and liquidity management.
Service Providers & Regulatory Compliance
The fund's cash and securities are custodied at Bank of New York Mellon and managed by experienced portfolio and liquidity managers. Hashnote's offshore funds are licensed as mutual funds by Cayman Islands Monetary Authority (CIMA), and its U.S. fund manager is registered as a CPO with the Commodity Futures Trading Commission (CFTC).
On-Chain Information
Token Standard
ERC-20
Available Networks
Ethereum
Address
0x136471a34f6ef19fE571EFFC1CA711fdb8E49f2b
Providers
Custody
BNY Mellon
Prime Broker
Marex
Bank
Customers Bank
Auditor
Cohen and Co
Fund Admin
NAV Consulting
KYC / AML
NAV Consulting
LMO Consulting
Regulation
US Region
CFTC
US-CPO for Hashnote Feeder Fund
Non-US Region
CIMA
SDYF and Hashnote Master Fund registered as Caymans Mutual Funds
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