EUR0 Savings (sEUR0)
sEUR0 is the savings token for EUR0, Usual Protocol’s euro-denominated stablecoin. Built on the ERC-4626 vault standard, sEUR0 turns EUR0 from a settlement asset into a yield-accruing savings instrument that is composable, transparent, and fully on-chain.
Users deposit EUR0 into a permissionless ERC-4626 vault and receive sEUR0 in return. sEUR0 balances do not rebase. Instead, yield accrues via an exchange rate that increases over time, so redeeming sEUR0 returns more EUR0 than initially deposited.
Yield is generated by the protocol’s underlying collateral stack—primarily European sovereign T-Bills and short-term money market funds (MMFs)—and is distributed through the vault’s exchange-rate appreciation mechanism.
Key Facts
Underlying asset: EUR0
Standard: ERC-4626 vault (non-rebasing, accrual-based)
Access: Permissionless — no KYC/KYB requirement
Yield source: European sovereign T-Bills and short-term MMFs
Distribution: Governed via on-chain parameters; rates may vary with market conditions
Redemption:
1 sEUR0 → EUR0 × exchangeRate(whereexchangeRate ≥ 1)
How sEUR0 Works
Deposit EUR0 into the vault.
Receive sEUR0, which represents your share of the vault’s total EUR0-denominated assets.
Accrue yield passively as the sEUR0/EUR0 exchange rate increases over time.
Redeem anytime to unwrap sEUR0 and receive EUR0 (principal + accrued yield).
Because sEUR0 follows the ERC-4626 model, integrations across DeFi are straightforward—improving accounting, interoperability, and yield distribution. Any protocol that supports ERC-4626 vaults can integrate sEUR0 natively.
EUR0 in the Usual Ecosystem
EUR0 is Usual Protocol’s euro-denominated Liquid Deposit Token (LDT), collateralized by high-quality Eurozone assets. It extends Usual’s multi-currency vision beyond the USD-denominated USD0 by applying the same core infrastructure—the Usual Collateral Bridge Infrastructure (UCBI)—to euro-denominated real-world assets.
As USD0 is backed by US Treasury Bills, EUR0 is backed by short-duration European sovereign bonds and money market instruments, following the same collateral eligibility principles used across the protocol:
Fully collateralized: No leverage and no fractional reserves
Low risk posture: Sovereign-grade, short-duration instruments only
Transparent: On-chain verifiable with frequent off-chain audits
Liquid by design: Portfolio duration maintained below established thresholds
The introduction of EUR0 reflects the protocol’s LDT scalability vision described in the litepaper: the Liquid Deposit Token concept is designed to be extendable to additional asset classes, positioning Usual as a DeFi integration layer across multiple currencies and regions.
Benefits of sEUR0
Predictable accrual mechanics: Value grows through exchange-rate appreciation (no rebases, no manual claiming)
Euro-native yield source: Short-duration European sovereign exposure designed for euro-denominated savings
Non-rebasing design: Compatible with DeFi primitives (LP positions, lending, aggregators) without balance-tracking complexity
Permissionless access: On-chain deposit and redemption with no gatekeeping
Governance oversight: Vault parameters are adjustable via USUAL governance, aligning yield distribution with community control
EUR0 vs. sEUR0 (At a Glance)
Purpose
Settlement asset
Savings instrument
Value
Pegged 1:1 to the euro
Grows via exchange rate
Access
Free mint / redemption
Wrap / unwrap via vault
Use cases
Payments, collateral, trading
Yield generation, DeFi integration
Design
Rebase-free stablecoin
ERC-4626 wrapper
Rebasing Track (EUR0 Base Layer)
EUR0 also includes a rebasing mode at the base layer, where yield is distributed directly to EUR0 balances. This track is part of the savings architecture but remains on EUR0 itself—it is not a separate token.
This rebasing mode supports use cases that require native balance growth without vault interaction, such as:
Simple wallet-based savings
Integrations where ERC-4626 vault mechanics are not suitable
Relationship to sUSD0
sEUR0 mirrors the design of sUSD0 (Savings USD0), the yield-bearing wrapper for USD0. Both products use the same ERC-4626 vault pattern:
Deposit the base stablecoin (EUR0 or USD0) into a permissionless vault
Receive a non-rebasing receipt token (sEUR0 or sUSD0)
Accrue yield from underlying collateral via exchange-rate appreciation
Redeem at any time for the base stablecoin plus accrued yield
This consistent architecture across currencies simplifies DeFi integrations and provides a familiar savings experience regardless of denomination.
Collateral & Risk Management
EUR0 collateral follows the same multi-layered risk management framework applied to USD0, adapted for Eurozone assets:
Interest rate risk: Managed via short-duration instruments and strict portfolio duration limits
FX risk: Zero tolerance — only EUR-denominated assets or fully EUR-hedged positions are accepted
Credit risk: Zero tolerance — restricted to sovereign and quasi-sovereign instruments; corporate debt is prohibited
Liquidity risk: Limited to assets redeemable within established timeframes with minimal slippage
Collateral selection and risk parameters are governed by the Usual DAO, with USUAL token holders voting on eligible Eurozone RWA providers and acceptable asset types.
Summary
sEUR0 converts EUR0 into a yield-accruing, ERC-4626-based savings instrument that is composable, transparent, and fully on-chain. It serves as the foundation for euro-denominated savings in the Usual ecosystem, extending Usual’s real-world asset infrastructure to Eurozone markets with the same rigor and community-first governance model that underpins USD0 and sUSD0.
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