Stablecoins: What is $USD0 by Usual?
In the evolving world of cryptocurrency, stablecoins serve as vital gateways between volatile assets and the dependable value of fiat. Usual USD (USD0) offers a fresh and secure take on stablecoins by using real-world assets (RWAs)—specifically ultra-short-term U.S. Treasury Bills—to collateralize its value, rather than relying on traditional bank reserves. Designed for stability, transparency, and DeFi composability, USD0 aims to redefine trust in digital fiat alternatives.
History
USD0 was developed by Usual Labs, founded in 2022 by Pierre Person, Adli Takkal Bataille, and Hugo Sallé de Chou. The goal from the outset was to create a secure, transparent, and yield-generating stablecoin backed by real-world assets (RWAs).
In April 2024, before USD0 was publicly available, Usual Labs secured $7 million in strategic funding from backers including IOSG Ventures and Kraken Ventures. At the same time, they attracted $75 million in Total Value Locked (TVL) during USD0’s private phase, showing strong early institutional and community interest.
USD0 entered its public pre-launch phase on July 10, 2024, opening participation to a wider audience. This period was used to test the system, gather feedback, and prepare for broader distribution—alongside plans for a Q4 2024 airdrop to early adopters.
The mainnet launch in mid-2024 marked USD0’s official debut, along with USD0++, its yield-bearing counterpart. Within months, TVL climbed from $90 million at launch to $400 million by November 2024, signaling rapid adoption in the DeFi ecosystem.
By December 2024, USD0 had entered the top 15 stablecoins by market cap, achieving 243% monthly growth and cementing its status as one of the fastest-growing RWA-backed stablecoins on the market.
What Makes USD0 Unique
USD0 distinguishes itself through its backing with Real-World Assets (RWAs) such as U.S. Treasury Bills and overnight repos. This collateral model offers resilience against traditional banking risks and ensures a robust foundation anchored in sovereign debt.
Transparency is central to USD0’s appeal: users benefit from real-time on-chain visibility into collateral reserves, generated by fund administrators. This open, permissionless design fosters trust and integrates seamlessly across DeFi.
Additionally, Usual’s mint engine and peg-protection mechanisms depart from traditional models like CDPs, offering refined collateral management and ensuring that USD0 maintains a reliable dollar peg.
The USD0++ innovation elevates this model further—USD0 holders can stake their tokens into USD0++, which locks them for four years but earns daily rewards in USUAL tokens. This approach not only offers yield but also grants holders shared ownership in the protocol’s growth.
How USD0 Is Used
Within DeFi, USD0 functions as a secure medium for payments, trading, and collateral, particularly on Ethereum-based platforms like Uniswap and Curve. USD0 is also available on Arbitrum One, Base and BNB Chain. Its stability and RWA backing give it an edge as a dependable trade pair and operational token.
The USD0++ variant transforms USD0 into a yield-generating instrument ideal for long-term holders. Despite its time-locked nature, USD0++ remains liquid and tradable in secondary markets. It offers structured exit options—such as burning USUAL tokens or redemption at a floor price—to help ensure peg integrity and reduce risk during periods of market stress. The protocol’s Usual Stability Loans (USL) feature further enhances liquidity by allowing users to borrow USD0 against their USD0++ holdings at predictable rates, enabling composability and price stabilization.
USD0 introduces a new generation of stablecoins built for resilience, openness, and integration with decentralized finance. With full backing by tokenized U.S. Treasury Bills, real-time transparency, and a dual model offering both stability and yield (via USD0++), USD0 aims to stand apart from traditional stablecoins like USDC or USDT. As DeFi continues to mature, USD0's combination of security, composability, and innovative economics positions it as a compelling option for both retail and institutional users alike.
You can buy, hold, and bridge USD0 in the MEW Mobile app if you prefer using mobile, or by downloading the Enkrypt browser extension if you prefer using a web browser.
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