What is USD0 Liquid Bond (USD0++)?

Quick Facts

• Token: USD0++ (USD0 Liquid Bond)
• Blockchain: Ethereum (ERC-20)
• Protocol: Usual (usual.money), founded in France
• Underlying asset: USD0, a stablecoin backed 1:1 by US Treasury Bills
• Maturity: USD0++ matures on June 11, 2028
• Yield type: Daily USUAL governance token coupons
• Early exit: Via rt-USD0 receipt token or secondary market
• Launched: May 2024

Introduction

USD0 Liquid Bond (USD0++) is a yield-bearing bond token issued by the Usual protocol. It represents USD0 stablecoin that has been locked for a fixed term, giving holders a composable, tradeable instrument that earns USUAL token rewards over time.

Unlike simply holding a stablecoin, USD0++ provides structured exposure to the Usual protocol's growth and incentive model — all while remaining liquid on secondary markets.

History & Background

Usual Labs, the France-based team behind the protocol, was founded in 2022. The project raised a total of $8.5 million across two funding rounds, backed by investors including Kraken Ventures and IOSG Ventures. The CEO is Pierre Person, a former member of the French National Assembly who played a role in shaping France's crypto legislation.

USD0, the protocol's core stablecoin, launched publicly in mid-2024. USD0++ followed shortly after in May 2024 as the bonded, yield-bearing layer built on top of USD0.

How USD0 Liquid Bond Works

When a user deposits USD0 into the Usual protocol, they receive USD0++ — a bond token that locks the underlying USD0 until the maturity date of June 11, 2028. At maturity, holders redeem 1 USD0++ for exactly 1 USD0.

During the lock-up period, the token remains fully transferable and tradeable on decentralized exchanges. Holders earn daily USUAL token coupons, referred to as 'Alpha Yield,' reflecting the protocol's incentive schedule.

For early exit, users can redeem via an rt-USD0 receipt token received at mint, which unlocks USD0++ back into USD0 at a 1:1 rate at any time. Alternatively, holders can sell USD0++ on the secondary market, though this may occur at a discount to par.

Tokenomics

USD0++ does not have an independent supply target — its quantity is determined entirely by how much USD0 is bonded. The token's economic design centers on three pillars:

• Yield in USUAL: Rewards are distributed daily in USUAL tokens, whose value is tied to protocol growth and governance rights.
• Par redemption at maturity: Holders receive the full underlying USD0 principal back at expiry.
• Community-first distribution: Usual allocates 90% of the USUAL token supply to the community, with the internal team and investors collectively holding no more than 10%.

Ecosystem & Use Cases

Because USD0++ is a standard ERC-20, it plugs directly into the broader DeFi ecosystem. Key integrations include:

• Curve Finance — primary liquidity pool for USD0++/USD0 trading
• Pendle — enables yield/principal separation for advanced strategies
• Morpho — allows USD0++ to be used as lending collateral
• Euler / Fira — supports leveraged positions via the Usual Zero Rate Market

USD0++ can also be leveraged through the Usual Stability Loan, making it a flexible building block for structured DeFi products.

Team, Governance & Community

Usual is governed by a DAO where USUAL token holders vote on key parameters, including price floors for early redemption, collateral policies, and treasury management. The protocol is built by Usual Labs, headquartered in France.

The community-first ethos is embedded in the tokenomics — 90% of the governance token supply flows to users and liquidity contributors, not to insiders.

Advantages

• Liquid bond design: USD0++ is transferable and tradeable during the lock-up, unlike traditional locked positions.
• RWA-backed security: The underlying USD0 is collateralized by short-term US Treasury Bills, providing a high-quality, bankruptcy-remote foundation.
• DeFi composability: Standard ERC-20 format enables seamless use across lending, DEX, and yield protocols.
• Community ownership: 90% of USUAL governance tokens go to the community, aligning protocol incentives with users.
• Real yield exposure: USUAL coupons tie holder returns to genuine protocol revenue, not just inflation.

Risks & Challenges

• Lock-up period: Full 1:1 USD0 redemption requires holding until June 2028; early exits via secondary market may result in below-par pricing.
• USUAL price volatility: Coupon yield is paid in USUAL, so realized returns depend heavily on the USUAL token's market price.
• Smart contract risk: Like all DeFi protocols, Usual carries inherent smart contract and upgrade risks.
• DAO governance risk: Parameter changes — including price floors for early redemption — are subject to DAO votes, which may shift unfavorably.
• Regulatory uncertainty: The evolving global regulatory landscape for RWA-backed stablecoins may affect protocol operations.

Long-Term Vision

Usual's broader ambition is to become a community-owned alternative to centralized stablecoin issuers like Tether and Circle, redistributing the value generated by stablecoin reserves back to users. USD0++ sits at the heart of this vision as a structured savings instrument that bridges real-world asset yield with open, permissionless DeFi.

The protocol plans to expand its product suite with yield optimizers, fixed-rate instruments, and additional bond maturities — positioning USD0++ as the foundation of a growing on-chain fixed-income ecosystem.