USD0 Alpha (USD0a) is the enhanced-yield version of USD0. It earns from a market-neutral strategy — long spot, short regulated futures — on top of a base layer of Treasury Bills. Higher expected return than sUSD0, still no crypto directional exposure, with a short redemption delay.
How USD0 Alpha works
You deposit USD0 or USDC into USD0 Alpha
You receive USD0a at the current exchange rate
The underlying capital is invested in a market-neutral basis carry strategy (90%) and a Treasury Bill buffer (10%)
The exchange rate grows over time as the strategy earns yield
When you want to exit, you redeem USD0a for USD0
USD0 Alpha is non-rebasing — your balance stays the same, and each USD0a becomes worth progressively more USD0.
Key facts
Deposit | USD0 or USDC |
Withdraw to | USD0 |
Yield source | CME dated futures basis carry + T-Bill yield |
Strategy type | Market-neutral (long spot, short dated futures) |
Collateral mix | 90% USCC (regulated basis fund) + 10% USTB/USDC buffer |
Directional crypto exposure | None |
Lock-up | None |
Redemption | Up to 7 days for large amounts; ~10% buffer for instant small redemptions |
What is a market-neutral basis carry strategy?
A basis carry strategy profits from the price gap between spot and futures.
Long spot BTC or ETH — buy the underlying asset at today's price
Short dated futures on the same asset — sell a futures contract that settles at a future date
As the futures contract approaches its settlement date, its price converges toward the spot price
The difference — the "basis" — becomes your profit, regardless of whether the underlying asset moved up or down
This is a structural strategy, not a directional bet. It does not depend on crypto going up. It does depend on spot and futures prices converging at settlement — which they do by contract design.
Why this is more stable than funding-rate strategies
Many on-chain basis carry strategies use perpetual futures, where yield comes from a variable "funding rate". Perpetual funding rates are volatile and can turn negative.
USD0 Alpha uses dated futures on CME — regulated, cash-settled contracts with fixed expiry dates. The basis is structural, not dependent on market sentiment. The yield is more predictable.
A worked example
Suppose you deposit 10,000 USD0 into USD0 Alpha. Assume the strategy earns 6% annualized:
Time | Exchange rate | Your USD0 if you withdraw |
Day 0 | 1.0000 | 10,000 USD0 |
6 months | 1.0300 | 10,300 USD0 |
12 months | 1.0600 | 10,600 USD0 |
Real yields depend on the basis gap at the time, which fluctuates with market conditions. Check the live rate in the app.
Redemption mechanics
Small redemptions — usually served instantly from the USDC / USTB buffer (about 10% of total assets)
Large redemptions — may take up to 7 days to settle as the underlying basis positions unwind in an orderly manner
The app shows current queue status and expected settlement time
Risks to understand
Risk | What it means |
Forced unwind on large redemptions | If many users redeem at once, unwinding positions under stress can crystallize small losses. |
Basis dislocation | In extreme market conditions, the spot-futures basis can widen before converging, causing mark-to-market drawdowns. Usually self-resolving by settlement. |
Operational and counterparty risk | USD0 Alpha uses regulated clearing (CME) and TradFi custody. Execution depends on these counterparties. |
Smart contract risk | Usual contracts must work correctly. Standard smart contract risk applies. |
Who USD0 Alpha is for
Users who already hold USD0 or USDC and want a higher rate than sUSD0
Users comfortable with a 7-day maximum redemption window for large amounts
Users who want yield without directional crypto exposure
Who USD0 Alpha is not for
Users who need fully instant liquidity on any size — use sUSD0
Users uncomfortable with any crypto market exposure, even market-neutral — use sUSD0 instead
Users with very small balances where the complexity is not worth the extra yield
Note: USD0 Alpha's yield is variable and depends on the basis spread at the time. It is typically higher than sUSD0 but can also compress during periods of low basis.
Technical note (for DeFi users): USD0a is an exchange-rate accrual vault (similar pattern to USUALx). The underlying collateral is composed of USCC (Superstate's CME basis-carry fund), USTB (Superstate Treasury Bill token), and USDC as the instant liquidity buffer. Redemption flow: 1 USD0a → USD0 × exchangeRate(t). See the docs for the current composition and NAV.
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