ETH0 gives you ETH exposure plus a USUAL coupon on top. That makes it a useful tool for specific strategies — but it comes with risks you should understand clearly.
Main use cases
1. Enhanced ETH exposure
The core use case: hold ETH0 instead of plain ETH or plain wstETH to earn an additional USUAL coupon without giving up ETH exposure.
Expected return profile:
ETH price appreciation (same as holding ETH)
Plus Lido staking yield (~3.0–3.5% APR through wstETH)
Plus USUAL coupon from the emission program
2. DeFi collateral
ETH0 can be used as collateral on platforms that support it, giving you the same borrowing power as wstETH but with the extra USUAL yield stream.
3. Liquid bond exposure (bETH0, planned)
A future bETH0 product will lock ETH0 for an enhanced USUAL yield, similar to bUSD0 for USD0. When live, it will be useful for long-horizon ETH holders who want to capture a larger share of the emission program.
Who ETH0 is for
You are long ETH and want extra yield without leaving the ETH ecosystem
You already hold wstETH and want to add a USUAL coupon stream
You are comfortable with two protocol layers (Lido + Usual)
Who ETH0 is not for
You want the simplest possible ETH exposure with no extra protocol risk — hold ETH or wstETH directly
You are not comfortable adding Usual smart contract risk on top of Lido
The risks — honestly
1. ETH market risk
ETH0 tracks ETH. If ETH falls 30%, your ETH0 balance falls 30% in dollar terms. You are not protected against ETH price volatility.
2. Lido staking risk
Lido uses a set of validators to stake ETH. If a validator is slashed (for example, for double-signing), wstETH loses a small amount of ETH value. Historically rare, but possible.
3. Smart contract risk — two layers
You are exposed to two protocols:
Lido — the staking layer. One of the most audited protocols in DeFi.
Usual — the ETH0 wrapper. 20+ audits. A pause mechanism exists for emergencies.
A bug in either layer can affect your balance. More layers = more attack surface.
4. Liquidity risk
If you want to exit ETH0 quickly, you have two paths:
Redeem directly at Usual — returns wstETH 1:1
Sell ETH0 on the open market — may trade at a small discount to the 1:1 value during stress events
5. USUAL price risk
The USUAL coupon is paid in USUAL, not ETH. Its dollar value depends on USUAL's market price. The coupon can be worth a lot or a little depending on USUAL's performance.
Comparing ETH0, wstETH, and ETH
ETH | wstETH | ETH0 | |
ETH exposure | 1:1 | 1:1 | 1:1 |
Native staking yield | No | Yes (~3.0–3.5%) | Yes (via wstETH) |
USUAL coupon | No | No | Yes |
Protocol layers | 0 | 1 (Lido) | 2 (Lido + Usual) |
Liquidity | Highest | Very high | Growing |
Note: ETH0 is structurally the most yield-productive of the three, but also the most complex and the one with the widest surface for protocol risk. Match the product to your risk tolerance.
Technical note (for DeFi users): ETH0 inherits Lido's slashing risk, withdrawal queue risk, and stETH depeg risk on top of Usual's own smart contract risk. The USUAL coupon comes from a dedicated ETH0 bucket in the emission schedule, distributed pro-rata to holders. The ETH0 contract on Ethereum mainnet is the canonical deployment. See the docs for audit reports and risk framework.
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