What is Usual USD (USD0)?

Quick Facts

  • Type: USD-pegged stablecoin backed by real-world assets
  • Backing: 1:1 collateralized by US Treasury Bills
  • Protocol: Part of the Usual DeFi ecosystem
  • Blockchains: Ethereum and Arbitrum
  • Governance token: USUAL (separate from USD0)
  • Key feature: Permissionless, fully transferable, composable
  • Related products: USD0++, bUSD0, USUAL

Introduction

Usual USD (USD0) is the core stablecoin of the Usual protocol, designed to maintain a 1:1 peg to the US dollar. Unlike conventional stablecoins backed by commercial bank deposits, USD0 is fully collateralized by US Treasury Bills, providing a more secure and transparent alternative.

The protocol aims to redistribute the economic benefits generated by stablecoin reserves back to the community, rather than allowing them to accrue only to a centralized issuer.

History & Background

Usual was founded in 2022 by a team that includes Philippe Honigman, Jan Baeriswyl, and Jacek Czarnecki, among others, combining expertise in blockchain technology and legal frameworks. The protocol was built around the conviction that the yield from stablecoin reserves should be a public good shared with users and the broader ecosystem.

The project describes itself as making 'money a public good,' a philosophy embedded throughout its product design.

How Usual USD Works

USD0 is minted when users deposit eligible tokenized Treasury Bill assets (such as USYC) into the Usual smart contract. Each USD0 token is backed 1:1 by these assets, with no fractional reserves involved.

The stablecoin is permissionless and composable, meaning it integrates easily with existing DeFi platforms for trading, lending, and use as collateral. Real-time reserve transparency is maintained on-chain, removing reliance on traditional banking infrastructure.

Tokenomics

USD0 itself is a stablecoin and does not accrue yield directly to holders. Revenue generated by the underlying Treasury Bill collateral is instead distributed to the ecosystem via the USUAL governance token.

Users who stake USD0 into USD0++ (a liquid staking derivative) receive USUAL token rewards, effectively channelling 100% of underlying protocol revenue back to participants. This model aligns incentives between the protocol and its community.

Circulating supply ? 560.39 million USD0
Total supply ? 560.39 million USD0
Max supply ? -- USD0
Updated 13h ago

Ecosystem & Use Cases

USD0 serves multiple roles within DeFi: as a payment token, a trading counterpart, and collateral. It can be traded on decentralized exchanges such as Uniswap and Curve.

The broader Usual ecosystem also includes bUSD0, a liquid staking version with a longer lock-up that functions similarly to a savings account, and UZR, a credit product expanding the protocol into yield and fixed-rate instruments.

Team, Governance & Community

The Usual protocol is governed by holders of the USUAL token, creating a community-driven decision-making model. The founding team brings together backgrounds in blockchain technology, legal compliance, and DeFi product design.

The community engages through official Telegram and Discord channels, and governance proposals shape the evolution of collateral types, protocol parameters, and new product rollouts.

Advantages

  • Treasury-backed security: Collateral is held in US Treasury Bills, not commercial bank deposits, reducing counterparty risk.
  • Transparent reserves: On-chain, real-time visibility into collateral holdings.
  • Revenue sharing: Protocol yield flows back to users and token holders via USUAL.
  • Composable DeFi integration: Permissionless design enables broad use across protocols.
  • Regulatory alignment: Designed with compliance considerations for both US and EU frameworks.

Risks & Challenges

  • RWA dependency: The stability of USD0 relies on the integrity of tokenized Treasury Bill providers.
  • Smart contract risk: As with all DeFi protocols, vulnerabilities in on-chain code remain a concern.
  • Regulatory uncertainty: Evolving stablecoin regulation globally could impact operations.
  • Adoption competition: USD0 competes with deeply entrenched stablecoins like USDT and USDC.

Long-Term Vision

Usual aims to become a leading decentralized stablecoin issuer by expanding its product suite to include fixed-rate instruments, yield optimizers, and multi-currency stablecoins such as EUR0. The core goal is to establish a model where stablecoin infrastructure serves its users rather than a centralized entity, making real-world financial yield openly accessible within DeFi.

Frequently Asked Questions

USD0 is a US dollar-pegged stablecoin issued by the Usual protocol. It is fully backed 1:1 by US Treasury Bills and is designed for use in DeFi as a payment token, trading asset, and collateral.

Unlike USDC and USDT, which rely on commercial bank deposits, USD0 is backed exclusively by US Treasury Bills. It also distributes the yield from its reserves back to the community via the USUAL token, rather than retaining profits centrally.

USD0 is minted by depositing eligible tokenized Treasury Bill assets into the Usual smart contract. The process is 1:1, meaning each USD0 is fully backed by an equivalent dollar value of collateral with no fractional reserve.

USD0++ is a liquid staking derivative of USD0 that allows holders to earn USUAL token rewards by staking their USD0. It keeps assets productive while remaining transferable within the DeFi ecosystem.

USUAL is the governance and revenue-sharing token of the Usual protocol. While USD0 is the stablecoin, USUAL represents ownership rights over protocol revenue generated by the Treasury Bill collateral backing USD0.

Yes, USD0 is fully permissionless and composable. It can be freely transferred and integrated across DeFi platforms including decentralized exchanges, lending protocols, and liquidity pools.

USD0 is available on Ethereum and Arbitrum, making it accessible across both the main Ethereum network and a popular Layer-2 scaling solution.

Usual was founded by a team including Philippe Honigman, Jan Baeriswyl, and Jacek Czarnecki, among others. The team combines expertise in blockchain technology, DeFi product design, and crypto legal frameworks.