UIP-12 — Renaming USD0++ to bUSD0 and Implementing a Redemption Token

Title: Introduction of bUSD0 & rt-bUSD0 (Redemption Token Model)

Author: Usual Labs

Category: New Product / Tokenomics Upgrade

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In one sentence

USD0++ becomes bUSD0, and a new token rt-bUSD0 is introduced to separate yield (bUSD0) from early-exit rights (rt-bUSD0). This structure creates a market for exit liquidity and strengthens long-term TVL.

TL;DR

• USD0++ is renamed to bUSD0 (bonded USD0). Nothing changes for existing bUSD0.
• For each new bUSD0 that will be minted on the primary market, 1 rt-bUSD0 is issued.
• rt-bUSD0 is a tradable redemption right. It receives no yield.
• bUSD0 remains the same locked token that farms USUAL until the initial maturity.
• Legacy USD0++ tokens are renamed to bUSD0
• All bUSD0 are fungible and can be unlocked using rt-bUSD0

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1. Motivation

After 16 months of usage:

• Farmers want a stable principal
• Long locks are common in TradFi, but exceptional in crypto
• The previous USD0++ model creates discount situations where primary mints stop, so no new TVL enters.

Goal: Keep a long-term locked asset for farming, recreate TVL but create more liquidity, allow wider and easier third party integrations and better priced.

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2. Specification

2.1 Token Roles

• USD0: base stablecoin
• bUSD0 (ex-USD0++):
  • No change. USD0 remains locked until maturity on June 11, 2028.
  • Receives USUAL coupon every day
  • Converts 1:1 into USD0 at maturity, unconditionally
• rt-bUSD0:
  • Unlocking right on bUSD0
  • No governance, no yield
  • Fully tradable

2.2 Mint & Redemption

• Primary mint:

  1 USD0 → 1 bUSD0 + 1 rt-bUSD0

• Primary Redemption:

  1 bUSD0 + 1 rt-bUSD0 → 1 USD0

• At maturity, bUSD0 → USD0 without rt-bUSD0

• rt-bUSD0 is only issued for new TVL (new locks via the primary market)

• Legacy USD0++ → bUSD0 and can be unlocked by purchasing rt-bUSD0 on the market

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3. Why this model is better

• Enables new TVL growth even when bUSD0 trades at a discount to maturity value on secondary markets
• Maintains a core of long-term TVL via bUSD0, while making liquidity monetizable and composable
• Creates a dedicated market for liquidity rights:
  • Users who want flexibility buy rt-bUSD0
  • Users who accept lock-up sell rt-bUSD0 and capture a premium

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4. Risks & Implementation

Key risks:

• Market risk on rt-bUSD0 (liquidity pricing volatility)
• Smart contract risk (migration, new burn/redemption logic)

Implementation:

1. Rename USD0++ → bUSD0 in contracts, UI and docs
2. Deploy rt-bUSD0 + mint logic (1 USD0 → 1 bUSD0 + 1 rt-bUSD0)
3. Implement: Burn bUSD0 + rt-bUSD0 → USD0 before maturity

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5. Voting

• YES:
  • Rename USD0++ → bUSD0
  • Introduce rt-bUSD0
  • Adopt the dual model bUSD0 (yield) / rt-bUSD0 (liquidity)
• NO:
  • Keep the current USD0++ model

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