Research summary
ADVERSE RESEARCH ASSESSMENT. The original thesis correctly identified mutable redemption terms but overstated several incident facts that the available primary record does not prove, including a January 10 effective date, more than $200M of Morpho borrows and losses to unlevered holders from liquidations. Usual announced on January 9, 2025 that the unconditional early 1:1 USD0++ exit would be replaced by a 0.87 USD0 floor plus a 1:1 route requiring USUAL-token contribution. Its January 14 update acknowledged that exit liquidity had been heavily impaired and residual USD0/USD0++ pool liquidity had remained below $20M after sell-offs and withdrawals. The product later became bUSD0 under UIP-12, but the decision variable did not disappear: current governance documentation says the DAO can set the early-exit floor, presently 0.92 USD0, and redemption fees. A locked, governance-administered RWA-backed claim is not equivalent to USD0 at par. Direct USD0, USDC or a separately approved savings token provides a clearer exit. Audits cannot make mutable economic terms immutable.
Observable review triggers
- The live bUSD0 contract enforces one USD0 of net primary redemption value without requiring purchase or burn of another token for 12 consecutive months
- Every floor, fee, pause, upgrade, maturity and rt-bUSD0 authority is published and reconciles to executed contracts and governance proposals
- Daily reserve composition and liabilities reconcile to independent attestations for 12 consecutive months
- Existing holders receive an enforceable notice and par-exit window before any redemption term changes
- Proposed-size primary redemption and secondary sale each pass the written time and slippage limits during a stressed-liquidity test
Facts on file
- Research assessment
- Adverse
- Client selection
- Not considered
- Exposure
- stable lending
- Chains examined
- Ethereum
- Reviewed
- Next review