Usual Boosted USDC Vault Whitelisting

Vaults
1

Introduction

This is a proposal to whitelist the Usual Boosted USDC Vault on MetaMorpho. The Usual Boosted USDC Vault will seek to whitelist Usual protocol collateral assets markets and continuously optimize risk-adjusted yield across these Morpho Blue Usual protocol collateral assets. The vault and the markets will be incentivized by the Usual DAO in alignment with the pills campaign. (See rules) You can see your pills at any time in the Usual Drugstore.

For the initialization of this Vault, we have whitelisted the USD0++/USDC and Curve LP (USD0++/USD0)/USDC markets.

About MEV

MEV Capital is a DeFi assets manager firm that already has more than $300M in assets under management and that is already curator on Symbiotic and Mellow. Its knowledge in DeFi is now clearly established and it will act as the first curator of Usual Morpho vaults and markets.

About Usual

USUAL rebuilds Tether on-chain, redistributing generated value to the user. As a decentralized protocol, it aggregates and unifies RWA TBill liquidity into a permissionless and composable stablecoin (USD0). The structure redistributes power and ownership to users and third parties, mirroring a scenario where TVL providers own the protocol and its revenues. This innovative approach transforms how value and governance are managed in the digital finance landscape.

Market Specifications

The Usual Boosted USDC Vault has whitelisted these markets for supply:

Usual Boosted USDC Vault

  • Address: 0xd63070114470f685b75B74D60EEc7c1113d33a3D
  • Symbol: USUALUSDC+
  • Objective: The Usual Boosted USDC Vault has the objective to provide external USDC liquidity to Usual assets users. It will allow them to get a better capital efficiency and to make leverage loops.
  • Incentives: Earn 1 Pill per day + Bonus Pills for every new USD0++ minted

Vault Fee

The vault have a 8% fee at the moment.

Whitelisting Vault Contracts

We ask Morpho DAO to whitelist this vault to be displayed in the UI.

MetaMorpho vaults may receive $MORPHO rewards from supplying to incentivized markets on Morpho Blue. To allow the vaults to transfer these potential $MORPHO rewards to suppliers, we propose whitelisting our vault addresses. The vaults have already reached the $2M threshold.

Learn more about Usual from our website and Twitter.

Learn more about MEV Capital from our website and Twitter.

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Update Summary

MEV Capital will make raises of the supply caps of the Morpho Usual Boosted USDC market.

Motivation

The Usual Boosted USDC market has been at its cap for an extended period of time, indicating there being more demand. This cap was placed for economic reasons surrounding available onchain liquidity for USD0++ at earlier stages of the Usual protocol. With Usual continuously maturing we want to double down on Morpho and further grow our vaults.

The DAO want to go one step further and offer lowest risk for all stakeholder holders involved by guaranteeing redemption for the entire supply of USD0++ in case of extensive liquidation without secondary market liquidity. This also includes collateralized USD0++ in Morpho, where the Usual DAO can redeem any USD0++ 1:1 in case of a liquidity crunch or other reasons. (DAO Unlock capability proof)

This is also possible thanks to the DAO partner and current only source of backing, Hashnote and their USYC product.

What is USYC?

USYC is the on-chain representation of the Hashnote International Short Duration Yield Fund Ltd. (“SDYF”). SDYF invests primarily in reverse repo and U.S. Government backed securities.

Why USYC

Being invested in overnight repo means minimized market risk, duration risk, and credit risk – as good as being in a U.S. Treasury Money Market fund, but with the transaction speed, transparency, and composability of being an ERC-20.

USYC lets you earn short-term risk free returns. Assets are deployed in reverse repo, with some allocated to T-Bills, to ensure maximum liquidity and minimum duration risk.

Liquidity for USYC

  • Mint / redeem time T+0 to T+1 into USDC or PYUSD.
    • Instant on-chain liquidity buffer of ~5% of entire USYC supply (can be check by anybody at anytime here : https://usyc.hashnote.com/)
    • Remaining at T+0 , T+1
  • Atomic on-chain instant mint / redeem available.
  • On-chain mint available only during “market hours”.
  • On-chain redemption available at any time but for limited size.
  • Safety
    • No credit intermediaries.
    • No loans to anyone.
    • Fully regulated by CIMA.
    • Direct access to segregated custodial account.
    • Custodied at Bank of New York Mellon

We will keep you updated of further developments.

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3

Adding PT-USD0++ market

We recently added a new PT market to our Usual Boosted USDC vault. This addition aligns us with borrowers seeking to profit from the full range of Usual products.

There is also a PT-USD0++ market on the Usual Boosted USDC vault. Once this market reaches maturity, users will be able to zap their PT position to the new market directly from Pendle.

Market Specifications

PT-USD0+±27MAR2025/USDC (91.5%)

  • Collateral Asset : PT-USD0+±27MAR2025
  • Borrow Asset: USDC
  • Supply Cap : 4M USDC
  • LLTV : 91.5%
  • Oracle : TWAP (15min) - 0xE316c92D2B1f50a53E72461856fD50b2519e5800
  • IRM : Adaptive Curve - 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

Next steps

We will provide regular updates with each new market addition.

4

Update on PEG Defense and PAR Usage:

The first PT USD0++ of Usual matured on October 31, creating significant selling pressure on the USD0++/USD0 secondary curve market.

Considering the large amount of selling pressure and volume, it has been a very positive stress test for Usual, which utilized the PAR (Parity Arbitrage Right - Parity Arbitrage Right (PAR) | Usual Docs) to defend the USD0++ peg. The USD0 peg was also defended by various arbitrageurs. This demonstrated that the Usual peg remained solid and that the PAR functioned as expected.

Here is a recap thread: x.com

All the PAR transactions: https://etherscan.io/advanced-filter?tkn=0x35D8949372D46B7a3D5A56006AE77B215fc69bC0&txntype=2&tadd=0x0000000000000000000000000000000000000000

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5

Adding PT-USD0++ market

We recently added a new PT market to our Usual Boosted USDC vault. This addition aligns us with borrowers seeking to profit from the full range of Usual products.

There is also a PT-USD0++ market on the Usual Boosted USDC vault. Once this market reaches maturity, users will be able to zap their PT position to the new market directly from Pendle.

Market Specifications

PT-USD0++25JUN2025/USDC (91.5%)

  • Collateral Asset : PT-USD0+±25JUN2025
  • Borrow Asset: USDC
  • Supply Cap : 1M USDC
  • LLTV : 91.5%
  • Oracle : TWAP (15min) - 0x3F9Df85F511eFe36a5f751017B3A117f3501C7e5
  • IRM : Adaptive Curve - 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

Next steps

We will provide regular updates with each new market addition.

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Adding USD0++/USDC market

We recently added a new market to our USUAL USDC Boosted vault. This addition aligns us with borrowers seeking to profit from the full range of Usual products.

Unlike the existing USD0++/USDC market, which relies on a hardcoded price source (1 USD0++ = 1 USDC), this new market uses a Chainlink oracle based on the secondary liquidity of USD0++.

This type of setup is inherently more robust in the long term and offers greater protection for the vault’s suppliers while keeping borrowers in optimal conditions, as liquidity is now significantly more developed.

USD0++ currently has a mechanism to maintain its peg:

  • If there is a price imbalance, the Usual protocol features an arbitrage mechanism (PAR), allowing the DAO to unlock USD0 and buy back USD0++ at its fair value.
    This mechanism ensures the peg is effectively maintained, even under significant selling pressure.

Discover how the PAR supports USD0++'s price under real-world conditions.

  • USD0++ has a floor price (greater than $0.86) that increases linearly until the maturity of its underlying asset (4 years). Integrations to reflect this floor price on-chain will be implemented soon.

  • The PAR redemption 1:1 for USD0+:USD0 is also available to anyone on the Usual protocol.

Therefore, we encourage borrowers from the previous USD0++/USDC market to migrate their positions to the new market. This can be done manually or in a single transaction using Morpho’s “Zap Position” function.

1501Ă—459 35.5 KB

The supply caps of the new market will be gradually increased according to the evolution of liquidity.

Market Specifications

USD0++/USDC (86%)

  • Collateral Asset : USD0++
  • Borrow Asset: USDC
  • Supply Cap : $60M
  • LLTV : 86%
  • Oracle : Chainlink USD0++/USD : 0xa1A67065670D838Bd34C9aE31906a60c175687b3
  • IRM : Adaptive Curve

Next steps

We will provide regular updates with each new market addition.

7

Adding sUSDe market and PT-sUSDe market

We recently added new markets to our Usual Boosted USDC vault. This addition aligns us with borrowers seeking to profit from the full range of DeFi products.

Markets Specifications

sUSDe/USDC (91.5%)

  • Collateral Asset: sUSDe
  • Borrow Asset: USDC
  • Supply Cap: 30M USDC
  • LLTV: 91.5%
  • Oracle: exchange rate: 0x873CD44b860DEDFe139f93e12A4AcCa0926Ffb87
  • IRM: Adaptive Curve

PT-sUSDe/USDC (91.5%)

  • Collateral Asset: PT-sUSDe-27MAR2025
  • Borrow Asset: USDC
  • Supply Cap: 30M USDC
  • LLTV: 91.5%
  • Oracle: Pendle - Spark 0x873CD44b860DEDFe139f93e12A4AcCa0926Ffb87
  • IRM: Adaptive Curve

Next steps

We will provide regular updates with each new market addition.

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8

Adding PT markets

We recently added new markets to our Usual Boosted USDC vault. This addition aligns us with borrowers seeking to profit from the full range of DeFi products.

Markets Specifications

PT-wstUSR (Pendle)

  • Collateral Asset: PT-wstUSR-27MAR2025
  • Borrow Asset: USDC
  • Supply Cap: 10M USDC
  • LLTV: 91.5%
  • Oracle: exchange rate: 0x5631200e3Fd465c42b4227819FD907AFA35e00C9
  • IRM: Adaptive Curve: 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

PT-wstUSR (Spectra)

  • Collateral Asset: PT-wstUSR-1740182579
  • Borrow Asset: USDC
  • Supply Cap: 10M USDC
  • LLTV: 91.5%
  • Oracle: exchange rate: 0x4EA91B4cA1AcEDa9444F4d4b1fd9c28b78062C20
  • IRM: Adaptive Curve: 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

Next steps

We will provide regular updates with each new market addition.

9

Hello,

This communication aims to clarify speculations about the USDC vault with MEV as curator and the various USD0++ markets.

First of all, like absolutely everyone else, MEV (and other curators like Steakhouse or Gauntlet) was not aware of the release of the new floor price. (they receive yesterday all tree a message at the same time.) Had they known, the situation could have been handled differently, with a much smoother transition. Contributors decided not to risk a leak that could have led to a death spiral for the protocol. MEV, therefore, had no involvement in this decision and cannot be held responsible, as the consequences are currently more negative than positive for them. The choice to keep this secret can be criticized, but it was made considering the risks to the protocol in the event of a leak. Moreover, all documentation clearly specifies that USD0++ is an asset backed by USD0 locked for 4 years.

Regarding markets and their security:

All markets with a hardcoded or 1:1 price equivalence with USDC will be replaced with new markets indexed to the floor price, featuring a higher LLTV. This adjustment reflects the fact that the 0.87 floor price has no volatility and is inherently designed to increase in the future, following the yield curve. This will allow low risk markets for borrowers and lenders.

The Usual team has been in contact with all partners and the various curators since last night, and the necessary market transitions should be completed within two days. Additionally, the DAO, as mentioned in the initial article about the floor price change, will be able to unwind any position with bad debt to avoid harming lending protocols and their potential curators.

We remind everyone that this decision was made solely to ensure the protocol’s proper functioning. While it is a harsh measure, contributors would have preferred it to be handled differently, but it was necessary. This change does not alter the intrinsic value of USD0++ and adds much more value to USUAL. Contributors are confident of a return to normalcy very soon, once the market cool down.

Once again, this may be the most challenging decision in the history of the Usual protocol, but it is also the most beneficial for its longevity and growth. It’s long term beneficial for both USUAL and USD0++ and the balance of the protocol.

More details about markets will be given soon.

10

did u think in the users of your protocol that got liquidated before pulling the trigger?

Only a psychopath could do something like what you did and think that people would carry on as if nothing had happened.

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Hello again,

The Morpho markets set up during the summer (USD0++ and LP USD0/USDC), along with the PT markets added later, relied on a hardcoded price of 1 USDC = 1 USD0++ for simplicity and safety reasons, as we always ensured that the DAO could redeem USD0++ in case of bad debt.

With the recent floor price update for USD0++, new Morpho markets, which are not liquidable by price, can now be established definitively. To facilitate migration, rewards for USD0++ in the old markets will be disabled in the coming days, encouraging users to transition to the new markets.

These new markets are all based on the floor price of 0.87USD, ensuring constant liquidity. Paraswap already has an adapter directly connected to the floor routing. Additionally, the new markets have a higher LLTV to accommodate most of the previous positions.

Here are the old markets and their replacements:

USD0++ / USDC

Is replaced by

This market is available

USD0USD0++ / USDC

is replaced by

This market is available

PT-USD0+±27MAR2025

is replaced by

This market is available

PT-USD0+±26JUN2025

is replaced by

This market is available

Usual asks users to migrate their positions to these new markets as soon as possible for obvious reasons. Rewards for positions in the old markets will be deprecated.

Here is a Morpho guide on migrating a position: x.com

Usual also reminds all users that the DAO will provide 1:1 redemption for any bad debt or liquidations at the cap level when the floor price was changed.

We leave it to MEV to describe the new markets as they always do.

12

Can you clarify this for liquidations?

Usual also reminds all users that the DAO will provide 1:1 redemption for any bad debt or liquidations at the cap level when the floor price was changed.

13

Please STOP calling or referring to Usual as “a DAO”. It is clearly NOT a DAO. It could EASILY be a DAO and should be to regain respect. Even a simple veto, as seen in some of the Morpho vaults would be a start.

When will Usual become a DAO and token holders have a right to have some say and transparency in protocol changes moving forward?

Thank you

1 Like
14

Adding new markets

We recently added new markets to our MEV Capital Usual USDC vault. This addition aligns us with borrowers seeking to profit from the full range of DeFi products.

Find more information about the new Usual markets here.

Market Specifications

USD0++/USDC (Naked - 96.5%)

  • Collateral Asset: USD0++
  • Borrow Asset: USDC
  • Supply Cap: 200M USDC
  • LLTV: 96.5%
  • Oracle: MEV Capital Naked USD0++: 0xBf877B424bE6d06cA4755aF2c677120eC71cac53
  • IRM: Adaptive Curve: 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

USD0USD0++/USDC (Naked - 96.5%)

  • Collateral Asset: USD0USD0++
  • Borrow Asset: USDC
  • Supply Cap: 200M USDC
  • LLTV: 96.5%
  • Oracle: MEV Capital Naked USD0++: 0xBf877B424bE6d06cA4755aF2c677120eC71cac53
  • IRM: Adaptive Curve: 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

PT-USD0++/USDC (MAR - Naked - 91.5%)

  • Collateral Asset: PT-USD0+±27MAR2025
  • Borrow Asset: USDC
  • Supply Cap: 30M USDC
  • LLTV: 91.5%
  • Oracle: Pende PtToAssetRate + MEV Capital Naked USD0++: 0x9cba7f915744728F183eB706e37971d73A4929F6
  • IRM: Adaptive Curve: 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

PT-USD0++/USDC (JUN - Naked - 91.5%)

  • Collateral Asset: PT-USD0+±26JUN2025
  • Borrow Asset: USDC
  • Supply Cap: 4M USDC
  • LLTV: 91.5%
  • Oracle: Ojo PtToAssetRate + MEV Capital Naked USD0++: 0xcc72714413FC14A72D7946f6187209db7A676b73
  • IRM: Adaptive Curve: 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

PT-sUSDe/USDC (FEB - 91.5%)

  • Collateral Asset: PT-sUSDe-27FEB2025
  • Borrow Asset: USDC
  • Supply Cap: 35M USDC
  • LLTV: 91.5%
  • Oracle: Pendle Spark PT-sUSDe-27FEB2025: 0x5Da4B29b877B21a4360495C06b88e8da194c169e
  • IRM: Adaptive Curve: 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

USR/USDC (91.5%)

  • Collateral Asset: USR
  • Borrow Asset: USDC
  • Supply Cap: 35M USDC
  • LLTV: 91.5%
  • Oracle: Resolv - USR/USD: 0x8875ceb24E656FCA062759BDCF870F59A2B0187b
  • IRM: Adaptive Curve: 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

lvlUSD/USDC (91.5%)

  • Collateral Asset: lvlUSD
  • Borrow Asset: USDC
  • Supply Cap: 5M USDC
  • LLTV: 91.5%
  • Oracle: hardcoded price: 0x6779b2F08611906FcE70c70c596e05859701235d
  • IRM: Adaptive Curve: 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

Next steps

We will provide regular updates with each new market addition.

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