# 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.