UIP-STAR: Disable Automatic Staking of Daily USUAL Rewards into USUALx (Post-Cliff)

USUAL STAR Technical Proposal — Disable Automatic Staking of Daily USUAL Rewards into USUALx (Post-Cliff)

Scope & Voting Eligibility (IMPORTANT)

This proposal is addressed exclusively to USUAL STAR holders (“STARs”).

It is a technical proposal to revert the USUAL STAR reward accrual mechanism to the original investment terms: daily rewards accrue as USUAL (not automatically staked into USUALx).

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1) Summary (TL;DR)

• What changes: The USUAL STAR vault/USUAL-SP contract will stop auto-staking the daily distributed USUAL into USUALx.
• After the upgrade: USUAL will accrue as USUAL in the contract.
• Operations: Accrued USUAL can be swept by the DAO (via OPERATOR role) and redistributed in regular intervals as part of UIP-13.
• What does not change: No change to distribution amounts, emission schedule, or tokenomics. Only the delivery / accrual form changes.

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2) Background

In April 2025, following UIP-4, USUAL rewards accumulated by USUAL STAR during the cliff period were automatically staked into USUALx. At the request of STARs, Usual Labs implemented a patch so that daily distributed USUAL was staked as USUALx (instead of accruing as raw USUAL).

Now that the cliff period has ended, this mechanism no longer matches the original intent of the investment contract. STARs should return to the baseline behavior: accruing USUAL daily without auto-staking.

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3) Motivation & Rationale

• Return to original contract expectations: Post-cliff, STAR rewards should accrue as USUAL unless a holder explicitly chooses to stake.
• Restore optionality: Auto-staking removes user choice on how/when to stake.
• Operational alignment: Accrued USUAL can be handled via DAO operations and redistributed consistently under UIP-13.

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4) Technical Specification

Behavior Change

This UIP will disable the previous functionality on the USUAL-SP (UsualSP) contract that automatically staked the daily received USUAL distribution into UsualX (USUALx).

New behavior:

• Daily rewards accrue as USUAL (not USUALx).
• The accrued USUAL can be swept by the DAO using the OPERATOR role.
• Swept USUAL will be redistributed at regular intervals via disperses in conjunction with UIP-13.

Non-Goals / No Impact Areas

• No change to reward rates, distribution amounts, or broader tokenomics.
• No other contract functionality is intended to be impacted.

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5) Security & Audits

• The upgrade has been audited by Sherlock with no findings (per the linked report below).
• No additional feature is introduced; the change is a removal/disablement of auto-staking behavior.

Audit report (Sherlock):

https://sherlock-files.ams3.digitaloceanspaces.com/reports/2026.01.05%20-%20Final%20-%20Usual%20Collaborative%20Audit%20Report%201767616296.pdf

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6) Implementation Details (On-Chain Actions)

Code References

• Repository PR: https://github.com/usual-dao/core-protocol/pull/88
• Commit hash (deployment reference): a2023fab70847dc6c1a9c000389ce503b4d111ae

Upgrade Transaction (Safe)

Primary:

https://app.safe.global/transactions/tx?safe=eth:0xaaDa24358620d4638a2eE8788244c6F4b197Ca16&id=multisig_0xaaDa24358620d4638a2eE8788244c6F4b197Ca16_0xeca0c9b7158f9872a765aa4a4d6bae0b8847e4e6c6b3d9dbb61e64018e50bce2

Mirror:

https://app.onchainden.com/safes/eth:0xaaDa24358620d4638a2eE8788244c6F4b197Ca16/transactions/0xeca0c9b7158f9872a765aa4a4d6bae0b8847e4e6c6b3d9dbb61e64018e50bce2

Upgrade Call

• To (ProxyAdmin): 0x6600798521D5E5eDA1106953A55BC96677d8176F
• Function: upgradeAndCall (sig 0x9623609d)
• Proxy (UsualSP): 0xa55AF35E5F4bb6A82E0A290570BcE38Ce2757d37
• New Implementation: 0xe28928cCe3E1b8567cBb12C1ce4Dff9f22059b3F
• Data: 0x (no additional call data)

Contract Addresses

Contract	Proxy	Implementation	ProxyAdmin
UsualSP	0xa55AF35E5F4bb6A82E0A290570BcE38Ce2757d37	0x954e8c025a8d9058c2445c528bc8b7bf4f35ed00	0x6600798521D5E5eDA1106953A55BC96677d8176F

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7) Impact Analysis

For USUAL STAR Holders

• Rewards will be accounted for as USUAL rather than USUALx.
• STARs retain full choice over whether/when to stake into USUALx independently.

For the DAO / Operations

• The DAO (OPERATOR) will periodically sweep accrued USUAL and redistribute under UIP-13.
• Requires continued operational discipline (scheduled sweeps, transparent reporting).

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8) Risks & Mitigations

Risk: Upgrade execution risk (proxy upgrade).

• Mitigation: Multisig execution via Safe; audited change; verification checklist; test/fork QA.

Risk: Operational handling of swept USUAL.

• Mitigation: Clear cadence + public accounting for sweeps/disperses; constrained role management via RegistryAccess; monitoring of balances and events.

Risk: Misinterpretation as tokenomics change.

• Mitigation: Explicitly stated: no distribution / tokenomics changes, only accrual form and operational sweeping.

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9) Voting Options (Snapshot)

• FOR — Disable auto-staking to USUALx; accrue rewards as USUAL (post-cliff) and sweep/redistribute via UIP-13
• AGAINST — Keep auto-staking daily USUAL into USUALx
• ABSTAIN — No preference / informational

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10) References

• PR: https://github.com/usual-dao/core-protocol/pull/88
• Commit: a2023fab70847dc6c1a9c000389ce503b4d111ae
• Upgrade Safe Tx: https://app.safe.global/transactions/tx?safe=eth:0xaaDa24358620d4638a2eE8788244c6F4b197Ca16&id=multisig_0xaaDa24358620d4638a2eE8788244c6F4b197Ca16_0xeca0c9b7158f9872a765aa4a4d6bae0b8847e4e6c6b3d9dbb61e64018e50bce2
• Sherlock Audit Report: https://sherlock-files.ams3.digitaloceanspaces.com/reports/2026.01.05%20-%20Final%20-%20Usual%20Collaborative%20Audit%20Report%201767616296.pdf
• UIP-13 redistribution reference: https://snapshot.box/#/s:usualmoney.eth/proposal/0x14defdb68b0e20bbb11edc79a05aacde74ac7cb9d11215703cd547d757697955