# Mint & Redeem Usual Protocol is a critical infrastructure layer that aggregates tokenized Real-World Assets (RWAs) from leading institutional providers, including **Hashnote**, **M0 Foundation**, **Superstate**, and others, and synthesizes them into a single, composable stablecoin: **USD0**. The system is organized into two architectural layers that together form the **Usual Collateral Bridge Infrastructure (UCBI)**. UCBI is the foundational technology enabling USD0 minting, redemption, and collateral management. *** ## Architectural Overview ### Layer 1: Usual Collateral Bridge Infrastructure (UCBI) UCBI is the protocol’s base layer and is responsible for: * **Minting and redeeming USD0** (the Liquid Deposit Token, or **LDT**) **1:1** against eligible RWA collateral * **Bridging permissioned and permissionless users** * Institutional/permissioned participants deposit eligible RWA collateral directly * Retail/permissionless users access 1:1 minting via an indirect matching system powered by **Collateral Providers (CPs)** * **Collateral management** * Enforcing eligibility criteria * Maintaining portfolio diversification targets * Providing real-time on-chain reserve verification * **Insurance and stability** * Maintaining an insurance fund * Operating the **Counter Bank Run Mechanism (CBR)** to protect the peg under stress *** ## How It Works: The RWA Aggregator Usual operates as an open platform: it does not rely on a single collateral type. Instead, it **aggregates multiple tokenized RWA sources** into a unified, permissionless stablecoin (USD0). This architecture: * **Simplifies access** to institutional-grade RWAs that are typically restricted (e.g., accredited investor constraints) * **Acts as a distributor** for tokenizers, expanding their reach and TVL (e.g., Hashnote TVL surged after integrating with Usual) * **Limits commercial bank counterparty risk**: USD0 is backed by US Treasury Bills (not bank deposits), avoiding SVB-type exposure * **Enables real-time, on-chain reserve verification** rather than relying solely on periodic attestations *** ## Minting USD0 USD0 can be minted via two primary paths, designed to serve both institutional and retail users. ``` Direct Mint: RWA Token ──▶ DaoCollateral ──▶ USD0 Indirect Mint: USDC ──▶ SwapperEngine ──▶ CP supplies RWA ──▶ USD0 Secondary: USDC ──▶ Curve (if favorable) ──▶ USD0 ``` ### 1) Direct Minting (RWA Deposit) Permissioned users deposit eligible tokenized RWAs directly into the protocol and receive USD0 **1:1**. ``` RWA Token (e.g., USYC) → DaoCollateral → USD0 ``` * **Contract**: `DaoCollateral` — `0xde6e1F680C4816446C8D515989E2358636A38b04` * Intended for institutional participants holding tokenized Treasury Bill collateral * Settlement is on-chain and immediate *** ### 2) Indirect Minting (USDC Deposit) Permissionless users deposit USDC; a **Collateral Provider (CP)** supplies the underlying RWA collateral on their behalf. ``` USDC → SwapperEngine → CP supplies RWA → USD0 ``` * **Contract**: `SwapperEngine` — `0xB969B0d14F7682bAF37ba7c364b351B830a812B2` * CPs receive an **instant reward in USUAL** upon completing each minting cycle (incentivized by the **Multi Collateral Controller**) * CPs can reuse the exchanged stablecoins and USUAL rewards to compound and iterate the provision process * **Launch-phase minimum order size**: **100,000 USD0** (smaller amounts are routed to secondary markets) *** ## Redeeming USD0 USD0 can be redeemed via one primary path and one secondary, designed to serve both institutional and retail users. ``` Direct Redeem: USD0 → DaoCollateral Contract → RWA Token (USYC, M, USTBL) Secondary Market: USD0 → DEX (Curve/Uniswap) → USDC / USDT ``` ### 1) Direct Redemption (RWA Withdrawal) Users present USD0 to the `DaoCollateral` contract and receive the underlying tokenized Treasury Bills at **1:1 par value**. ``` USD0 → DaoCollateral → RWA Token (e.g., USYC) ``` *** ### 2) Secondary Market (DEX / Aggregators / OTC) You can sell USD0 for USDC, USDT, or other stablecoins on secondary markets, including decentralized exchanges (e.g., Curve, Uniswap), aggregators (e.g., 1inch, Paraswap), or OTC desks. * **Who it’s for:** Retail users, smaller amounts, or anyone prioritizing immediate liquidity without interacting with primary-market contracts. * **Typical pricing:** Close to $1.00 due to arbitrage incentives. * **Common venues:** Curve USD0/USDC (primary liquidity venue), Uniswap, and other supported markets across **Ethereum, Arbitrum, Base, and BNB Chain**. *** ## Providing RWA Collateral (Collateral Providers) Collateral Providers (CPs) bridge permissioned RWAs and permissionless users by supplying eligible collateral for indirect minting. ### Collateral Provider Flow 1. **Deposit eligible collateral** (e.g., USYC, M, USTBL) to the protocol 2. **Receive stablecoins** (USDC) exchanged from permissionless users. 3. **Collateral is used** to mint and deliver USD0 to permissionless users **1:1** 4. **Reloop** ``` Collateral Provider Permissionless User | | | 1. Deposits RWA (e.g., USYC) | | ───────────────► DaoCollateral | | | | | | 2. User deposits USDC | | ◄──────────────────| | | | | 3. Receives USDC | 3. Receives USD0 | | ◄──────────────────── | ──────────────────►| | | | | | | | 4. Rebuy RWA (optional loop) | | ─────────────────────────────► | ``` This mechanism ensures both institutional RWA holders and everyday DeFi users can access **USD0** efficiently, while the protocol maintains a balanced collateral portfolio and reliable primary-market minting. *** ## Peg Stability Architecture USD0 targets a **$1 peg** using multiple reinforcing mechanisms. ### Arbitrage Loop | Scenario | Arbitrage Action | Result | | ------------- | --------------------------------------------------- | ---------------------------------- | | **USD0 < $1** | Buy USD0 on a DEX → redeem at par via DaoCollateral | Buying pressure helps restore peg | | **USD0 > $1** | Mint USD0 at par → sell on a DEX at a premium | Selling pressure helps restore peg | *** ### Oracle Infrastructure | Oracle | Address | Purpose | | --------------------- | -------------------------------------------- | ---------------------------------------------- | | ClassicalOracle | `0xb97e163cE6A8296F36112b042891CFe1E23C35BF` | Collateral pricing and ratio enforcement | | Chainlink USD0 Oracle | `0x7e891DEbD8FA0A4Cf6BE58Ddff5a8ca174FebDCB` | USD0 price data for external DeFi integrations | *** ## Key Smart Contracts
ContractAddressFunction
USD00x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5USD0 stablecoin Token
bUSD00x35D8949372D46B7a3D5A56006AE77B215fc69bC0Liquid Bond Token
USUAL0xC4441c2BE5d8fA8126822B9929CA0b81Ea0DE38EGovernance token
USUALx0x06B964d96f5dCF7Eae9d7C559B09EDCe244d4B8EStaked USUAL
DaoCollateral0xde6e1F680C4816446C8D515989E2358636A38b04Direct mint/redeem
SwapperEngine0xB969B0d14F7682bAF37ba7c364b351B830a812B2Indirect USDC mint
ClassicalOracle0xb97e163cE6A8296F36112b042891CFe1E23C35BFCollateral pricing
*** ## Multi-Chain Deployment USD0 and supporting infrastructure are deployed across multiple chains: | Chain | USD0 Address | Bridge Technology | | ---------------------- | -------------------------------------------- | -------------------------- | | **Ethereum** (primary) | `0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5` | Native | | **Arbitrum** | `0x35f1C5cB7Fb977E669fD244C567Da99d8a3a6850` | Chainlink CCIP / LayerZero | | **Base** | `0x758a3e0b1F842C9306B783f8A4078C6C8C03a270` | Chainlink CCIP / LayerZero | | **BNB Chain** | `0x758a3e0b1f842c9306b783f8a4078c6c8c03a270` | Chainlink CCIP / LayerZero | Cross-chain transfers use **Chainlink CCIP** for secure messaging and **LayerZero** for omnichain token transfers, supporting unified liquidity across networks. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.usual.money/usual-products/usd0-stablecoin/usd0/flow-and-architecture.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.