USD0 Liquid Bond

USD0++

USD0++ is a liquid staking token created by locking USD0 for up to four years, offering daily $USUAL token rewards and a guaranteed risk-free yield tied to its collateral.

Risk Rating
Average
What is USD0 Liquid Bond?
What we like
USD0++ provides access to both speculative and risk-free yield. The token acts as a zero-coupon bond with a 4-year lock-up, distributing daily rewards in $USUAL tokens and guaranteeing a risk-free yield equivalent to the underlying U.S. Treasury collateral.
What we like less
The complexity of USD0++’s lock-up structure, combined with the dual exit mechanism, introduces risks for liquidity and price stability. The team did a poor job of communicating the risks involved (not intended to be pegged 1:1 to USD) around its true nature as a zero-coupon bond.
What it means for you
USD0++ offers long-term yield opportunities but requires a deep understanding of its mechanics and risks. Users must weigh the benefits of speculative yields against the risk of illiquidity or market depegs, especially in comparison to traditional alternatives like treasury-backed ETFs.

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Information
Blockchain
  • Ethereum
Info
  • Asset Type: ERC-20
Key Metrics
Risk Assessment
Average
Asset Strength

USD0++ is a low-cap, fully collateralized asset. This asset depends on a centralized entity for custody services. This asset is exposed to the underlying risks of Usual, a protocol rated as Average.

Dependencies

Usual

Asset Tokenomics

USD0++ has a fixed supply. USD0++ is potentially exposed to negative feedback loops; however, there are mechanisms in place to prevent reflexivity. Liquid staking token for USD0 acting like a savings account for RWA with a 4-year lock-up.

Things to know about USD0plus

What is USD0++?

USD0++ is the staked version of USD0 that allows users to earn yield in USUAL tokens. It is not intended to be pegged 1:1 to USD. Instead it operates more like a zero-coupon bond, with a four-year lock-up period during which users receive no direct yield but accumulate rewards in the form of USUAL emissions.

How does USD0++ work?

USD0++ is a liquid staking token (LST) created by staking USD0 for up to four years, allowing users to access both variable and guaranteed yields. Holders earn daily coupons in $USUAL tokens, whose value depends on market conditions, while the Base Interest Guarantee (BIG) ensures a minimum yield equivalent to the risk-free return of the underlying USD0 collateral, such as U.S. Treasury Bills. USD0++ remains liquid and composable within DeFi, enabling trading on secondary markets and integration with various protocols. To safeguard stability, the protocol introduces mechanisms like a price floor for early redemptions and a Parity Arbitrage Right (PAR), allowing the DAO to unlock USD0++ prematurely if depegging occurs.

How to redeem USD0++?

Users have three options to exit their USD0++ position. First, USD0++ can be sold on the secondary market at prevailing market prices, offering liquidity without lock-up constraints. Second, users can unstake USD0++ at a floor price determined by the DAO (currently set to $0.87), which gradually increases over time. Lastly, users can pay a fee in $USUAL to unstake USD0++ at a 1:1 ratio to USD0, allowing for immediate redemption while forfeiting part of their rewards.

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