Mint & Redeem
Usual Protocol is a critical infrastructure layer that aggregates tokenized Real-World Assets (RWAs) from leading institutional providers, including Hashnote, Ondo, BlackRock (via BUIDL), M0 Foundation, 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.
1) Direct Minting (RWA Deposit)
Permissioned users deposit eligible tokenized RWAs directly into the protocol and receive USD0 1:1.
Contract:
DaoCollateral—0xde6e1F680C4816446C8D515989E2358636A38b04Intended 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.
Contract:
SwapperEngine—0xB969B0d14F7682bAF37ba7c364b351B830a812B2CPs 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.
1) Direct Redemption (RWA Withdrawal)
Users present USD0 to the DaoCollateral contract and receive the underlying tokenized Treasury Bills at 1:1 par value.
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
Deposit eligible collateral (e.g., USYC, M, USDtb) to the protocol
Receive stablecoins (USDC) exchanged from permissionless users.
Collateral is used to mint and deliver USD0 to permissionless users 1:1
Reloop
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
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
ClassicalOracle
0xb97e163cE6A8296F36112b042891CFe1E23C35BF
Collateral pricing and ratio enforcement
Chainlink USD0 Oracle
0x7e891DEbD8FA0A4Cf6BE58Ddff5a8ca174FebDCB
USD0 price data for external DeFi integrations
Key Smart Contracts
USD0
0x73A15FeD60Bf67631dC6cd7Bc5B6e8da8190aCF5
USD0 stablecoin Token
bUSD0
0x35D8949372D46B7a3D5A56006AE77B215fc69bC0
Liquid Bond Token
USUAL
0xC4441c2BE5d8fA8126822B9929CA0b81Ea0DE38E
Governance token
USUALx
0x06B964d96f5dCF7Eae9d7C559B09EDCe244d4B8E
Staked USUAL
DaoCollateral
0xde6e1F680C4816446C8D515989E2358636A38b04
Direct mint/redeem
SwapperEngine
0xB969B0d14F7682bAF37ba7c364b351B830a812B2
Indirect USDC mint
ClassicalOracle
0xb97e163cE6A8296F36112b042891CFe1E23C35BF
Collateral pricing
Multi-Chain Deployment
USD0 and supporting infrastructure are deployed across multiple chains:
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.
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