Don't be embarrassed if you are uneducated! You can't even understand the white paper, how dare you call yourself a teacher?
The collateral of usd0 is usdc/usdt, not treasury bonds!
You use the collateral to buy treasury bonds and earn the income!
Usdc/usdt is 1:1 with the US dollar, how can it explode?
The risk of Usual is that the price of the currency falls, the income decreases, and the TVL is lost. So what market makers and project parties have to do is to raise the price of Usual.