UIP-16 Usual Zero Rate Module (UZR): Add U0R as USD0 collateral

UIP-16 (Technical / Preparatory) — Usual Zero Rate Module (UZR): Add U0R as USD0 collateral

Author: Usual Labs (core contributors) Type: Governance proposal (DAO vote) Subject: Introduction of U0R as USD0 collateral and UZR module

TL;DR

Following the DAO vote to reduce USUAL inflation, governance set the USL rate to 0% and stopped USUAL emissions for bUSD0 deposited as USL collateral.

We now propose a technical UIP to introduce Usual Zero Rate Token (U0R) as a new USD0 collateral through a new internal infrastructure next to USL: the Usual Zero Rate Module (UZR), with a clear property: 0% rate on this infra.

UZR will co-exist with the current USL on Euler: nothing is replaced, nothing is forced, users can choose to stay or move.

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Why this UIP (context)

• This is a technical UIP that precedes an upcoming UIP which will propose the complete new infrastructure.
• This UIP is required to unlock essential testing (security, integrations, on-chain behavior, and user flows) ahead of broader deployment.
• The goal is to reduce risk and validate the technical assumptions before submitting the final migration / architecture to governance.

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Problem / Motivation

USL on Euler has demonstrated real demand, but it relies on a third-party infrastructure and parameters that are not fully owned and operated by the Usual protocol.

This proposal aims to:

• Offer an internal alternative for users who want a 0% rate experience on Usual infrastructure,
• Improve readability: one product = one clear promise (0%),
• Establish a more composable foundation for future integrations/strategies.

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Definitions

• USL (on Euler): the existing solution; it continues and remains unchanged.
• UZR: the Usual Zero Rate Module built on an internal infra.
• U0R: the vault token of the Usual Zero Rate Module (UZR).
• USD0: Usual’s stablecoin.
• bUSD0: USD0 bond.

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What is being proposed (core)

A) Add U0R as collateral for USD0

• Authorize U0R as an eligible collateral within the UZR framework.

B) Deploy a dedicated internal infrastructure (UZR) with 0% rate

• Launch an internal, zero-rate (0%) infrastructure.
• Usual Labs is able to finalize the tests.
• The USL on Euler remains active under its current conditions.
• The full infrastructure will be revealed in a subsequent UIP.

C) Co-existence (no replacement)

• UZR Infrastructure co-exists with USL on Euler; it does not “replace” it.
• Users can choose:
  • stay on USL Euler,
  • use UZR on the internal infra,
  • or mix both depending on preferences.

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What does NOT change

• No forced changes to existing USL Euler positions.
• No changes to unrelated products, parameters, or strategies.
• No mandatory migration.

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Rollout plan (phasing)

Phase 1 — Deployment & availability

• Enable U0R collateral and test

Phase 2 — Validate and reveal full infrastructure adoption

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The ask (vote)

We ask the community to vote to:

1. Approve adding U0R as collateral for USD0
2. Approve deploying the internal UZR module with a 0% rate
3. Confirm that USL on Euler remains unchanged and co-exists with UZR

Voting options (example)

• FOR — Approve UIP-16.
• AGAINST — Reject the UIP-16.
• ABSTAIN — No position.

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Closing

This UIP is a preparatory step: it enables the testing and validation required before the upcoming “full infra/product” proposal, while providing a simple, voluntary option: an internal 0% rate module, without breaking the existing USL.