Usual USD
USD0 is a fully collateralized stablecoin backed by U.S. Treasury Bills and short-term Real World Assets (RWAs), designed to maintain a stable value of $1.
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- Asset Type: ERC-20
USD0 is a mid-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.
USD0 is a stablecoin that usually trades within 20bps of its peg to , which makes it a solid store of value.
USD0 has a fixed supply. Stablecoin offered by Usual backed 1:1 by short duration real-world assets (RWA) like US treasuries and overnight repos.
What is USD0?
USD0 is a stablecoin fully backed by U.S. Treasury Bills, offering a dollar peg designed for security and transparency. It serves as the base asset within the Usual ecosystem and is the starting point for generating yield through staking.
How does USD0 work?
USD0 maintains its value through a collateralization model backed by secure Real World Assets (RWAs), including U.S. Treasury Bills and overnight repos. These assets are managed with a strict risk policy to ensure low counterparty and default risk, offering a high level of stability. Initially, collateral is provided by Hashnote, whose on-chain tokenized fund (USYC) invests in short-duration U.S. government-backed securities. While USD0 itself does not accrue yield, users can convert it into USD0++ to access the protocol’s yield-generation mechanisms.
How to redeem USD0?
USD0 tokens can be redeemed in two ways. First, users can directly withdraw the underlying Real World Assets (RWAs) backing USD0 through the protocol’s redemption process. Second, USD0 can be traded for USDC or USDT on secondary markets, where its 1:1 peg is maintained via arbitrage mechanisms similar to those of other fiat-backed stablecoins.