Usual USD

USD0 is a stablecoin launched by the Usual protocol in 2024 that aims to track the US dollar. According to the protocol, each USD0 is backed by real-world assets such as tokenized short-term US government bonds; DefiLlama also classifies USD0 among fiat-backed stablecoins. The token is mainly found on Ethereum and Arbitrum. The protocol says it proposes a 'stablecoin issuer' model that directs income sharing to users.

In Usual's model, part of the income earned from the reserves is directed to users and the ecosystem through USUAL, the protocol's governance token. Users can lock USD0 in the protocol to convert it into a bond-like, fixed-term derivative token; changes made in early 2025 to the early-exit terms of this token caused debate in the market.

The dollar peg is a design goal; the liquidity of the reserve assets and the protocol's redemption rules are decisive. On Lzzo.com, the Usual USD value is based on DefiLlama's US dollar reference and is for information only; the general category label in our catalogue does not change the product's nature as a stablecoin.