Why Vaults? The Evolution of USD0++

USD0++ was built to go beyond traditional stable assets: it’s designed as a dynamic financial layer, capable of moving across DeFi’s best opportunities without friction.

With the introduction of Vaults, this vision expands further. Vaults allow USD0++ holders to earn from external strategies without leaving the Usual ecosystem. Instead of selling their USD0++ to chase yields and points elsewhere, users can now deploy it into Vaults and access new opportunities while continuing to benefit from USUAL rewards.

For the Usual ecosystem, Vaults don’t just add utility: they strengthen demand for USD0++, keeping it actively engaged in high-yield DeFi strategies while ensuring sustainable revenue flows back to the DAO.

Vaults are a natural evolution of USD0++: capital-efficient, ecosystem-aligned, and built for long-term value creation: all while keeping USD0++ at the core.

Introducing ustUSR++: The First Vault

The first step in expanding USD0++’s utility starts with ustUSR++, a Vault designed on Lagoon to provide holders with direct exposure to stUSR, Resolv’s staked USR.

When depositing into ustUSR++, USD0++ is:

• Exchanged 1:1 for USD0 on the primary market

• Reinvested into stUSR

This setup allows depositors to earn across multiple layers:

• stUSR yield from basis trading strategies

• Resolv points, adding further incentives

• USUAL rewards, ensuring continued alignment with the Usual ecosystem

Withdrawals are always processed in USD0++.

At launch, ustUSR++ has a $5M cap, which will gradually increase based on demand, allowing for a controlled rollout that optimizes capital flows while maintaining system integrity.

ustUSR++ is just the beginning: an initial step in enabling USD0++ to interact with high-yielding assets across DeFi while staying within the Usual framework.

How Earnings Work: A Triple Yield Mechanism

ustUSR++ is built to maximize returns while keeping USD0++ actively productive. Depositors tap into three distinct yield streams, creating a capital-efficient strategy that remains fully aligned with the Usual ecosystem. Usual's native token rewards are claimable daily within its app. While stUSR yield reflects in the vault's share price over time. In case of an airdrop, it will also offer an extra yield boost to stUSR++ share holders.

USUAL Yield

The new Vault feature allows users to deposit 1 USD0++, which is then invested in stUSR, while still earning the USUAL rewards associated with their USD0++, received daily.

ustUSR++ holders continue to receive the same amount of USUAL rewards as they would if they were holding the original USD0++ invested in the Vault.

stUSR Yield

Resolv’s stUSR generates yield from basis trading strategies. stUSR yield is realized upon withdrawal, meaning it automatically compounds until users exit the Vault.

Resolv Points

Since deposited funds are reinvested into stUSR, users also accumulate Resolv points and maintain eligibility for any future Resolv airdrop, providing an extra layer of incentives on top of yield and USUAL rewards. Vault accumulates points, and the potential Resolv airdrop will be redistributed proportionally among Vault share holders afterward, through airdrop/disperse.

Fee mechanism

The Vault mechanism includes two types of fees: a base fee and a performance fee applying only to the performance of stUSR.

Base Fee

The base fee, applied only to stUSR performance, ensures that the Usual DAO recovers the equivalent of the risk-free rate it previously earned before USD0++ redemption, preventing dilution for USUAL holders. This fee is capped at 4% but may be lower if stUSR’s yield falls below 4% over a given period, ensuring that users do not experience negative returns.

Since USD0++ is swapped for stUSR, a portion of USD0 TVL is temporarily redeemed, meaning the Usual DAO no longer earns yield from its T-bill-backed collateral. To compensate for this, a flat 4% base fee replaces the missing T-bill yield.

Performance Fee

The performance fee, applied only to stUSR performance once stUSR’s yield exceeds 4%, a 20% performance fee is applied to the excess yield only on stUSR yield. This fee is split as follows:

• 50% goes to the curator: 9Summits.

• 50% goes to the Usual DAO, reinforcing the ecosystem and benefiting USUAL holders.

A Win-Win Mechanism

This fee model is designed to create a win-win situation:

• The Usual DAO maintains its revenue streams.

• USD0++ holders keep receiving full USUAL rewards while gaining additional exposure to external assets.

The Strategic Edge: Capital Efficiency at Work

One of the biggest advantages of ustUSR++ is its ability to unlock greater capital efficiency, especially given USD0++’s current market dynamics. Since USD0++ is exchanged 1:1 for USD0 before being reinvested into stUSR, depositors gain full-value exposure, regardless of secondary market conditions.

Here’s why that matters:

• USD0++ currently trades below $1 on secondary markets (e.g., $0.96).

• Depositing into ustUSR++ still grants $1 of exposure to stUSR per USD0++, even if acquired at a discount.

This allows depositors to enter at a lower cost while capturing full exposure, effectively boosting their yield without additional risk.

No leverage. No complexity. Just smart capital efficiency, keeping USD0++ productive while staying fully within the Usual ecosystem.

Risk Isolation & Security

Vaults are fully isolated from USD0++’s core collateral backing, ensuring that risks remain contained within each Vault and do not affect the broader Usual ecosystem.

Here’s how it works:

• Each Vault operates independently, meaning funds deposited into ustUSR++ are entirely separate from the reserves backing USD0++.

• Exposure in ustUSR++ is strictly tied to stUSR, ensuring that any risks associated with stUSR remain siloed within the Vault alone, without impacting USD0++ holders outside of it.

• Users expose their USD0++ to a third-party product whose risks are inherent to the underlying protocols.

By maintaining strict risk isolation, Vaults provide a secure and transparent way for USD0++ holders to earn from external strategies, without introducing systemic risk to the protocol.

Conclusion: The Future of Vaults

ustUSR++ is just the beginning. Vaults unlock a new dimension for USD0++, allowing it to seamlessly interact with high-yielding DeFi strategies while remaining deeply integrated within the Usual ecosystem.

More Vaults will follow, expanding USD0++’s utility and demand by providing exposure to additional yield-generating assets. Each Vault will be designed to:

• Unlock new earning opportunities while keeping USD0++ at the core

• Seamlessly integrate with external protocols for optimized capital flows

• Generate sustainable revenue for the Usual DAO

With Vaults, USD0++ becomes more powerful than ever, empowering holders to optimize capital, stack multiple layers of yield, and tap into new DeFi strategies without ever leaving the ecosystem.

FAQ

Q. Where can I track my accumulated Resolv points?

Answer: Resolv points earned through the Vault are tracked and recorded on the backend of the Vault infrastructure. While they are not directly visible within the Usual interface, they are accounted for and will reflect accordingly within Resolv’s ecosystem.

Q. Who is responsible for distributing the potential Resolv airdrop?

Answer: The distribution of any potential Resolv airdrop will be managed by Lagoon, as they oversee the Vault infrastructure. Usual is not responsible for the airdrop distribution.

Q. Will Vault depositors receive their $USUAL rewards in the Usual dApp’s “Earn” section?

Answer: Yes, ustUSR++ Vault depositors will continue earning $USUAL rewards just as they would when holding USD0++. These rewards will be claimable in the Usual dApp’s “Earn” section, ensuring a seamless experience.

Q. Why is there a base fee?

Answer: The base fee is designed to compensate the Usual DAO for the lost T-bill yield when USD0++ is swapped for stUSR. This ensures that the protocol maintains its revenue model while still allowing depositors to access additional yield opportunities through the Vault.

Q. Does the base fee apply to my principal, $USUAL rewards, or Resolv rewards?

Answer: The base fee only applies to the stUSR yield generated within the Vault. Your principal, $USUAL rewards, and Resolv points remain unaffected by this fee.

About Lagoon

Lagoon provides an open infrastructure to launch, manage and scale on-chain vaults. They are on a mission to democratize DeFi risk management, turning sophisticated farming strategies into 1-click yield products.

About Usual

Usual is a decentralized stablecoin protocol designed to bring transparency, security, and long-term value redistribution to the DeFi ecosystem. By leveraging real-world asset backing, Usual offers USD0, a fully collateralized and resilient stablecoin, providing a reliable alternative to traditional fiat-backed models. At the core of the protocol is USUAL, a governance and rewards token that aligns incentives between users and the ecosystem, distributing yield while granting holders a stake in Usual’s future. Through its innovative approach, Usual empowers its community with both financial rewards and governance participation, ensuring a stable and decentralized foundation for the next generation of on-chain finance.