Usual Boosted USDC Vault Whitelisting

Vaults
2

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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