Usual Official

gm gm—we've just published a new UIP that proposes an upgrade to the USD0++ model. The goal is to make the system clearer, create more liquidity, allow new TVL even when USD0++ is discounted on the secondary market, and align incentives for both liquid and long-duration users.

Below is a summary of the proposed changes so the community can review and participate.

Name Change: USD0++ → bUSD0

USD0++ already functioned as the staked/bonded version of USD0. The UIP formalises this by renaming it to bUSD0 to make the roles of each asset clearer in the system:

USD0 = stablecoinbUSD0 = locked USD0 that farms USUALrt-bUSD0 = new redemption token (explained below)

The name change is purely clarity-driven. The underlying purpose remains the same.

New Model: Separating the Lock from the Exit Right

Under the old USD0++ model, exiting relied mainly on the price floor. When USD0++ traded at a discount, users would buy discounted tokens on the secondary market instead of minting, which slowed new inflows.

The new model separates responsibilities into two tokens:

When locking 1 USD0, the user receives:

1 bUSD0, which stays locked and earns USUAL1 rt-bUSD0, which represents the right to redeem early at 1:1

The two tokens behave as follows:

bUSD0 remains the locked asset that farms USUAL. At maturity, it automatically converts back to USD0 even without rt-bUSD0.rt-bUSD0 carries no yield and no governance. It simply gives the right to exit early at par.To exit early, users burn 1 bUSD0 + 1 rt-bUSD0 → 1 USD0.rt-bUSD0 is freely tradable, letting users choose between maintaining liquidity or taking on more bUSD0 exposure by selling their exit rights.

This structure replaces the price-floor-only exit model with a direct, par-based redemption path.

Why This Matters

The new model addresses the weak points of the previous system while keeping all the long-duration benefits:

Early exits now occur at 1:1, reducing the incentive for the asset to sit at a persistent discount.A separate market emerges for exit rights.

People who want flexibility can buy rt-bUSD0.

People who want higher bUSD0 exposure can sell their rt-bUSD0 and capture the illiquidity premium.

Long-term TVL and USUAL farming remain intact, but the exit mechanism becomes cleaner and more economically sound.

tl;dr:

The upgrade renames USD0++ to bUSD0 and introduces rt-bUSD0, separating the lock from the exit right so that early redemption can happen at par instead of relying on the price floor.

The UIP is now open for review.

Please take a moment to read the full proposal, share feedback, and ask questions before it moves to a vote.

Looking forward to your input.

https://snapshot.box/#/s:usualmoney.eth/proposal/0x3d145586562f493fcecd0d7c399f0d90e1e1adfcb133bd4eace4ecd5e6fc4ce1

USD0 was designed to establish a clear and reliable digital currency - stable collateral, transparent accounting, and predictable mechanisms under all circumstances.

Today, this foundation expands with USD0a, a new way to generate yield, bringing more structure, more consistency, and more clarity to how yield works on-chain.

Usual introduces its Enhanced Yield Mode through its new token, USD0a. It enables a new strategy that optimizes and adapts yield based on delta-neutral strategies and market dynamics while maintaining a conservative and transparent approach.

USD0a offers absolute composability, allowing it to be at the center of future strategies, giving its holder the ability to improve capital efficiency.
A More Structured Approach to Earning
USD0a operates within the same user flow as USD0.
You mint it via USDC or USD0, you hold it, and you earn through a process designed to behave consistently via the daily increase in USD0a's value.
When liquidity is available, redemptions in USDC or USD0 settle instantly.
When activity is higher, withdrawals follow a short, predictable queue — a structure that maintains system order, even as conditions evolve.
What sets USD0a apart is how it generates yield.
Instead of relying on funding rate-based environments that can fluctuate sharply, USD0a uses a more stable delta-neutral approach, designed to produce consistent results that are less subject to market volatility.
The yield-generating collateral is transparent and allows everyone to understand the underlying strategy.
Part of a Unified System
USD0a does not replace USD0 or Savings, it stands alongside them, expanding the ways users can interact with the ecosystem:
USD0 remains the foundation of stability as Usual’s USD-backed stablecoin.Savings (sUSD0) offers a simple, passive way to earn yield through T-Bill–based strategies.Enhanced Yield (USD0a) introduces a higher-performance, delta-neutral strategy designed for users seeking a more advanced return profile.

Together, these products form a broader and more flexible system, allowing users to choose the path that best fits their needs, all while staying within a framework built on transparent collateral and consistent design.

Transparent Value, Clear Behavior
USD0a is grounded in valuation logic that is easy to follow. It offers market-neutral carry exposure, primarily driven by the convergence of dated futures toward spot as it approaches maturity.
Value flows are tied to documented mechanisms, not opaque internal processes.
Returns come from structured inputs that are visible, interpretable, and aligned with the expectations of users who want more predictable performance.

Due to its straightforward valuation model, users always understand what drives yield, why returns accrue the way they do, and how redemptions are handled.
It is a system designed to avoid ambiguity, both for everyday users and for more formal participants such as treasury desks, funds, and integrated protocols.
Why USD0a Matters
As stable assets take on a larger role in DeFi and onchain finance, USD0a brings the reliability and transparency needed for a delta-neutral approach to yield generation. This strategy, already well established in TradFi, also makes it easier for new DeFi users to gain exposure to tokenized, regulated strategies with confidence.
USD0a offers a path for users who want:
Stable, market-neutral returns that do not depend on external market cyclesA clear and transparent valuation modelRedemption mechanics based on predefined, documented rules

USD0a introduces a level of predictability and openness that is rare among yield-bearing stable assets today, turning yield generation into something structured, disciplined, and decentralized.

USD0a Is Now Live
USD0a is available today in the Usual app.

Minting, redemptions, valuation details, and queue visibility are already integrated into the interface.

The experience is clean, intuitive, and aligned with the rest of the ecosystem.

Enhanced Yield reflects the broader direction we are building toward:
financial tools that behave consistently, that feel intuitive to use, and that raise the standard for what yield-bearing digital assets should look like.

The disinflation update approved through UIP-11 is now being put into effect.
It slows issuance, simplifies system mechanics, and strengthens the foundation the protocol will build on moving forward.
Over the past year, USUAL expanded quickly. Demand grew, product direction became clearer, and fundamentals improved. But emissions were rising faster than usage, and incentives built for bootstrapping created persistent sell pressure.
Disinflation corrects that.
It shifts the protocol from high-velocity expansion to a more durable, sustainable structure.
The adjustment includes:
Daily emissions reduced by over 50%Roughly 90% of farming-driven sell pressure removedUSL converted into a zero-coupon modelA fixed, finite supply of 3B USUALCleaner USD0++ behaviour for predictable integrationsA trade-off from short-term activity toward long-term system health
These changes address a central community question around why strong fundamentals were not reflected structurally.
Disinflation provides the answer by tightening issuance, removing extraction loops, and allowing fundamentals to speak again.
This update also sets the conditions required for the protocol’s next phase, where token design supports the product rather than defines it.
USUAL now moves into a more deliberate, stable operating mode.
Disinflation is the first step.
Read More here : https://usual.money/blog/disinflation-resetting-the-pace-for-long-term-stability

Farming was meant to bootstrap a system. It brought early liquidity, volume, and awareness.
But over time, the same incentives that helped the protocol grow began to weigh it down.
Issuance outpaced demand. Emissions became extraction.

UIP-11 is the reset. A deliberate shift from farming to structure, from short-term activity to long-term alignment.

Full Proposal Here: https://snapshot.box/#/s:usualmoney.eth/proposal/0x14df63cd930e222815c714287fa8f9a4cd212bb86120c7145ee7781a97ccf4d7

The Point of Equilibrium
USUAL was built on fundamentals: measurable revenue, a strong treasury, and mechanisms designed to compound value over time.
Those fundamentals remain intact. The system generates meaningful cash flow and holds substantial reserves.
Yet the token’s structure has not reflected that strength.
UIP-11 addresses that imbalance. It reduces the total supply, halves future inflation, and removes the majority of farming-driven sell pressure that has capped price discovery.
The goal is simple: to make USUAL’s price reflect its fundamentals again.

A Leaner Architecture
Inside the USL, rewards to USD0++ holders phase out as fees fall to zero, aligning borrowers and holders under one set of incentives.
Liquidity rewards are reduced but optimized, keeping market depth efficient through concentration rather than excess issuance.
Each part of the system continues to function, only now it does so with less waste and clearer purpose.

Fairness by Design
For holders, supply compression means value is no longer diluted faster than it can compound.
For stakers, the share of emissions rises, and a one-time unlock window in December ensures flexibility under the new structure.
For USD0++ users, there is now a choice between stable maturity or ongoing rewards.
The system becomes fairer by design, not by redistribution.

Rebuilding Confidence
Community frustration has been consistent: strong fundamentals, weak reflection.
UIP-11 is not a reaction to that frustration; it is the structural solution to it.

By tightening supply and restoring balance, the protocol regains credibility through design, not narrative.
This is how systems earn trust, by proving that performance is built into the architecture, not the incentives.


The Direction Forward
As the protocol moves toward v2, the focus shifts from distribution to design.
Tokenomics no longer define the product, they enable it.
UIP-11 builds that foundation, allowing growth to come from structure rather than issuance.

Attention matters. It brings users, liquidity, and confidence.
But attention should follow purpose, not replace it.
By rebuilding the system around sustainable mechanics, we create something worth paying attention to.


Further details and open discussion will continue in #discussion, where questions will be logged and addressed ahead of the Tuesday AMA.


This is the next chapter for USUAL.
It begins with UIP-11.
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Full Proposal Here: https://snapshot.box/#/s:usualmoney.eth/proposal/0x14df63cd930e222815c714287fa8f9a4cd212bb86120c7145ee7781a97ccf4d7