ETH0 is Usual's ETH balance. As a DeFi bank that supports multiple asset classes, Usual offers ETH0 as an ETH-denominated position backed 1-to-1 by staked ETH. It combines ETH exposure with a USUAL coupon on top.
In one sentence
1 ETH0 tracks 1 ETH, is backed by 1 wstETH (Lido's wrapped staked ETH), and earns a USUAL coupon from Usual's emission program on top of the underlying staking yield.
Key facts
Peg | 1 ETH0 ≈ 1 ETH |
Backed by | wstETH (Lido wrapped staked ETH) |
Native staking yield | ~3.0–3.5% APR (from Lido) |
Extra yield | USUAL coupons from the platform emission program |
Chain | Ethereum (primary) |
Redemption | 1:1 wstETH at any time |
How it works
Mint: Deposit wstETH → receive ETH0 (1:1 in ETH terms, accounting for wstETH's floating exchange rate)
Hold: Earn the native ETH staking yield through the wstETH collateral plus a USUAL coupon on top
Redeem: Return ETH0 → receive wstETH (1:1)
Trade: Sell ETH0 for ETH or another asset on a supported market
Two yield streams in one token
Stream | Source | Paid in |
Staking yield | Lido validators staking ETH | Automatically compounds into wstETH (which becomes worth more ETH over time) |
USUAL coupon | Platform emission bucket | USUAL tokens, distributed regularly |
This makes ETH0 structurally more yield-productive than holding raw ETH or raw wstETH — but it also adds protocol risk on top of staking risk.
Who ETH0 is for
You hold ETH or wstETH and want additional yield through USUAL
You want ETH exposure but also want to participate in the Usual ecosystem
You are comfortable with the extra layer of smart contract risk that comes with any DeFi product
Who ETH0 is not for
You want exposure to ETH only and prefer to hold it natively
You are uncomfortable adding a protocol layer on top of Lido
The liquid bond variant: bETH0
A bETH0 (Liquid Bond Token for ETH0) is planned, following the same model as bUSD0 for USD0. It would allow holders to lock ETH0 for enhanced yield through a fixed-term commitment. When live, it will have its own dedicated article.
Note: ETH0 inherits both Lido's staking risk and Usual's smart contract risk. Read ETH0 risks and use cases before committing a large amount.
Technical note (for DeFi users): ETH0 is the second Liquid Deposit Token (LDT) in Usual's LDT framework, after USD0. It uses the same UCBI (Usual Collateral Bridge Infrastructure) layer for minting and redemption. Collateral Providers receive USUAL rewards for facilitating permissionless minting. The underlying exchange rate against ETH floats slightly because wstETH accrues staking yield over time. See the docs for contract addresses and the live exchange rate.
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