Summary
Ketju does not approve Usual's USD0++ (now bUSD0): governance can change what an early redemption pays, and in January 2025 it did. On January 9, 2025 Usual announced that it would replace the unconditional early 1:1 USD0++ exit with a 0.87 USD0 floor, plus a 1:1 route that required a contribution of USUAL tokens. Its January 14 update acknowledged that exit liquidity had been heavily impaired. Residual USD0/USD0++ pool liquidity had stayed below $20M after sell-offs and withdrawals. UIP-12 later renamed the product bUSD0, and the risk remains. Current governance documentation says the DAO can set the early-exit floor, now 0.92 USD0, and the redemption fees. A locked claim backed by RWAs, whose terms governance can change, cannot be treated as USD0 at par. Direct USD0, USDC or a separately approved savings token gives a clearer way to redeem. Audits cannot make terms that governance can change permanent. Some accounts of the event claim a January 10 effective date, more than $200M of Morpho borrows and losses to unlevered holders from liquidations, and the primary sources do not prove them.
Review triggers
- The live bUSD0 contract enforces one USD0 of net primary redemption value, without the purchase or burn of another token, for 12 consecutive months
- Every floor, fee, pause, upgrade, maturity and rt-bUSD0 authority is published and matches executed contracts and governance proposals
- Daily reserve composition and liabilities match independent attestations for 12 consecutive months
- Existing holders receive enforceable notice and a window to withdraw at par before any redemption term changes
- A primary redemption and a secondary sale at the proposed size each pass the written time and slippage limits during a stressed-liquidity test
Facts
- Verdict
- Not approved
- Type
- Dollar lending
- Chains examined
- Ethereum
- Reviewed
- Last confirmed