Usual USD (USD0) — Complete Guide

USD0 is a permissionless stablecoin backed by tokenized Real World Assets — primarily short-term US Treasury bills — issued by Usual Protocol. Unlike USDC or USDT where the issuer keeps reserve interest, Usual distributes a portion of Treasury yield to USD0++ stakers and USUAL token holders. USD0 launched in mid-2024 and grew to $1.5B+ TVL within months by offering users a share of the reserve income that traditional issuers keep.

Users deposit accepted RWA tokens (primarily Hashnote's USYC — a tokenized Treasury bill) to mint USD0 at a 1:1 ratio. The deposited RWAs earn Treasury yield, which is redirected to the Usual Protocol treasury. USD0 can be staked into USD0++ (the yield-bearing version), which earns a share of Treasury yield distributed as USUAL tokens and yield-bearing rewards. The peg is maintained by direct redemption: USD0 is always redeemable for $1 of underlying RWAs. Usual's innovation is the governance model: USUAL token holders govern how protocol revenue is distributed, aligning the stablecoin with its user community.

• +Revenue sharing model: stakers receive Treasury yield instead of issuer pocketing it
• +RWA backing through USYC provides institutional-grade Treasury bill exposure
• +USUAL governance token aligns protocol growth with user incentives
• +USD0++ automatic yield distribution without manual claiming
• +Grew to $1.5B+ TVL in under 6 months — strong product-market fit signal
• +Curve USD0/USDC pool among the fastest-growing stablecoin pools in 2024

• !USD0++ briefly de-pegged to $0.91 in January 2025 after governance changed redemption terms — major trust event
• !USUAL token emissions dilute yield returns — the attractive early APY relies on token inflation
• !Dependence on USYC (Hashnote) as RWA collateral — Hashnote operational or regulatory failure would impact USD0