USD0++ is an innovative product within the Usual ecosystem, essentially an enhanced treasury bond. With the enhanced 4-year DeFi treasury bond, secured by a principal guaranteed as USD0 locked in for 4 years, it ensures the principal can be recovered. It allows users to benefit from the growth and success of the agreement. Unlike traditional models, USD0++ not only provides protocol income but also allocates ownership of the agreement through its innovative reward mechanism. This innovative design embodies profound financial wisdom. When users convert USD0 into USD0++, they essentially enter a carefully designed dual-yield structure. The first layer is the basic yield from U.S. Treasury bonds, guaranteed by the Basic Interest Guarantee (BIG) mechanism, ensuring investors receive returns comparable to ordinary treasury bonds even in the worst-case scenario. The second layer comes from enhanced yields generated by protocol development, distributed in the form of USUAL tokens.
It is worth noting that the lock-in period for USD0++ is set at 4 years, and this choice of timeframe is not arbitrary. It aligns with the maturity of U.S. Treasury bonds and provides the agreement sufficient time to develop and create value. During these 4 years, USD0++ holders effectively become long-term partners of the agreement, with their interests closely tied to the growth of the agreement.
From a technical implementation perspective, USD0++ adopts a method of automated management through smart contracts. When users deposit USD0, the contract automatically allocates funds to the optimal treasury bond portfolio while initiating the token issuance plan. This process is completely transparent and immutable, allowing users to check their investment status and expected returns at any time. More importantly, the entire system uses a modular design, meaning that in the future, parameters can be flexibly adjusted or new functions added according to market demand and regulatory requirements.
Compared to traditional financial markets, the innovation of USD0++ lies in its successful transformation of passive treasury bond investment into active protocol participation. Investors are no longer just waiting for interest to mature; they can participate in protocol governance through USUAL tokens, share in growth dividends, and even trade these rights on the secondary market. This design essentially creates a completely new category of financial products, retaining the safety of treasury bonds while endowing it with the growth potential of the crypto economy.
From a risk management perspective, USD0++ offers a unique risk hedging solution. In the volatile environment of the crypto market, investors can obtain stable cash flow from treasury bonds while sharing industry growth through USUAL tokens. This combination strategy effectively balances risk and return. Especially in downturn periods, the basic interest guarantee mechanism can provide significant downside protection, while in bullish periods, USUAL tokens provide considerable upside potential.