Vaults
Why Vaults?
bUSD0 is a composable product designed to access DeFi opportunities while preserving its productive nature. With Usual Vaults, bUSD0 holders can deposit bUSD0 directly into Vaults and gain exposure to integrated external strategies in addition to bUSD0’s ongoing USUAL token rewards.
This integration delivers three outcomes:
Stronger demand for bUSD0 by adding utility beyond holding to maturity or providing liquidity
Sustainable revenue for the USUAL DAO via management and performance fees
Active deployment into high-yield DeFi strategies, supporting long-term ecosystem growth and stability
As described in the protocol’s product taxonomy, Vaults extend the Liquid Bond Token (LBT) composability principle: bUSD0 can be deployed across DeFi while remaining productive. Vaults formalize that composability into a managed, curated experience.
How Usual Vaults work
Vaults leverage partnerships, most notably Lagoon Finance, to provide “managed composability.” Each Vault is managed by a curator, who is responsible for:
Selecting investment strategies, including Real-World Asset (RWA) opportunities with T+1 settlement
Ensuring fair valuation of Vault shares using oracle pricing
Reducing front-running risk through epoch-based settlement
Deposit flow (epoch-based)
When depositing into a Vault, users convert bUSD0 1:1 into USD0. Deposits are processed through an epoch mechanism:
Epoch initialization The first epoch begins at contract initialization.
Deposit request Users submit a deposit request (e.g.,
300 bUSD0) and transfer assets into a secure silo.Settlement The curator calls
settleDeposit, which:secures the deposited tokens, and
mints Vault shares at a fair valuation based on current oracle pricing.
Optional cancellation (pre-settlement) Before settlement, users can cancel the deposit request and recover their tokens from the silo.
Withdrawal flow (epoch-based)
To redeem Vault shares, users follow this process:
Withdrawal request Users submit a redemption request and place their Vault shares into a silo.
Epoch transition The curator updates total assets, closing the current epoch and opening the next.
Redemption settlement The curator executes
settleRedeem, which burns Vault shares and transfers the equivalent bUSD0 plus accrued interest back into the Vault (for user claiming).Claiming funds Users call
redeemto transfer the redeemed assets to their wallet. This step is optional, but prompt redemption is generally better for financial optimization.
Vault fees
Vaults apply a performance fee only to returns above a base yield (the reference rate) set by the DAO (e.g., 4% APY/APR). For example, the stUSR Vault charges a 20% fee on yields exceeding this reference rate.
Management fee
DAO retains yield up to the reference rate
Reference rate (e.g., 4% APR)
Performance fee
Charged on returns above the reference rate
20%
Entry/exit fee
None for standard deposit/withdrawal
0%
This structure ensures the DAO captures a baseline return on Vault capital (supporting the protocol’s insurance fund and treasury operations), while users benefit from outperformance above the reference rate.
Available Vaults
ustUSR++ Vault
The inaugural Vault strategy, the ustUSR++ Vault, deploys bUSD0-sourced USD0 into stUSR (Resolv’s staked USR token), a delta-neutral yield product.
Key characteristics:
Underlying strategy: stUSR (Resolv’s staked USR token)
Yield source: delta-neutral cash-and-carry strategies, similar in concept to USD0a (Alpha USD0)
Settlement: T+1 settlement for RWA-related components
Performance fee: 20% on yields above the reference rate
Curator: managed by a dedicated Lagoon Finance curator
Superstate Vault
Syrup Vault
Sky Vault
Risk considerations
Vaults introduce additional risks compared to holding bUSD0 directly:
Smart contract risk
Reliance on Lagoon vault infrastructure and underlying protocols introduces smart contract vulnerabilities
Usual Protocol has undergone 20+ audits by leading firms; Lagoon Finance contracts are independently audited
Strategy risk
Strategies (e.g., stUSR) face market risks such as negative perpetual funding rates driven by long/short imbalances
Curator selects proven, audited strategies; diversification across strategy types
Counterparty risk
Exposure to external trading platforms (e.g., exchange hacks)
Use of institutional-grade counterparties; the protocol’s multi-layered counterparty risk framework informs strategy selection
Liquidity risk
Epoch-based settlement can delay withdrawals
Deposits can be canceled before settlement; epoch durations are kept short
Curator risk
Performance depends on curator strategy selection and execution
Curators are vetted; DAO governance can adjust parameters and curator appointments
Important: Vault users should assess these risks against potential returns. Vault strategy yield introduces exposures beyond the conservative collateral profile of USD0’s underlying T-Bill backing, which maintains zero tolerance for credit and FX risk and limits duration to under 0.33 years.
Holding bUSD0 vs. depositing into a Vault
USUAL daily coupons
✅ Yes
✅ Yes
External strategy yield
❌ No
✅ Yes
Smart contract risk
bUSD0 contract only
bUSD0 + Lagoon + strategy contracts
Liquidity
Immediate (secondary market)
Epoch-based withdrawal
DeFi composability
Full (Pendle, Morpho, Curve, etc.)
Limited to the Vault position
1:1 maturity redemption
✅ Guaranteed (June 2028)
✅ Via bUSD0 redemption at exit
Key takeaways
Two yield streams: bUSD0’s native USUAL rewards plus external strategy returns.
Epoch-based settlement: curator-managed epochs support fair valuation and reduce front-running.
Fee model: the DAO retains yield up to the reference rate; users earn excess returns minus a ~20% performance fee.
Risk/reward trade-off: higher potential yield comes with additional smart contract, strategy, and counterparty risk.
Pre-settlement cancellation: users can cancel deposit requests before settlement.
Powered by Lagoon Finance: Vaults use Lagoon’s managed vault framework for security and operational efficiency.
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