FAQs

What is the difference between USDO and cUSDO?

USDO is a rebasing yield-bearing stablecoin that is pegged at $1. Yield accrued is paid out in additional USDO tokens.

cUSDO is a wrapped version of USDO that allows users to engage with platforms and protocols that do not support rebasing tokens, while still retaining the value and stability of USDO. Unlike USDO, which distributes yield daily through rebasing, cUSDO accumulates yield internally, resulting in an increase in the value of each cUSDO token over time.

USDO can be wrapped into cUSDO and vice versa using the publicly available and permissionless USDO-cUSDO wrapper smart contract. (insert URL when ready)

Is USDO redeemable to USD?

USDO is pegged at $1 and can be redeemable for USDC on a primary redemption basis (eligible users that have been KYC-ed and onboarded). There is no option for USDO to be redeemed directly to USD fiat at the moment. Such a feature is under planning and development.

Is USDO bankruptcy-remote?

USDO is issued by OpenEden Digital (“OED”), a Bermuda Monetary Authority (“BMA”) licensed digital asset issuer set up as a Bermuda registered and licensed segregated accounts company (“SAC”). OED is a wholly owned subsidiary of OpenEden Group (“OEG”). As a licensed digital asset issuer, OED is permitted to issue, sell or redeem virtual coins, tokens or any other form of digital asset.

By issuing and redeeming the USDO through OED, USDO holders’ are assured that under the SAC Act of Bermuda:

• There is a mandatory segregation of assets and liabilities of the USDO assets from the general accounts of OED.

• All assets backing USDO will be kept in a segregated account separate and distinct from all other funds and assets of the general account of OED.

• OED, its shareholders and its other creditors shall have no recourse or right to the assets and properties of the segregated account.

• The segregated account cannot be used with respect to the obligations of the general account of OED or any other persons, whether during the insolvency, bankruptcy or financial impairment of OED, its other shareholders, or affiliates, or otherwise.

How is USDO collateralized?

USDO is collateralized by high-quality, liquid reserves, primarily consisting of U.S. Treasury bills and reverse repurchase agreements. These reserves are managed by OpenEden Digital ("OED") and are designed to ensure the stability and security of USDO.

The reserves serve as the foundation for maintaining a 100% collateralization ratio, meaning every USDO token in circulation is fully backed by equivalent assets. The transparent and robust management of USDO reserves provides assurance to users that the token is fully backed by secure, liquid assets, thereby maintaining confidence in its value and stability.

How can I acquire USDO or cUSDO?

USDO can be acquired on a primary minting basis or via secondary markets. Primary minting of USDO is only available to eligible users that have been KYCed and onboarded. USDO minted on a primary basis will always be at a rate of 1 USDO : 1 USDC.

USDO can be obtained on a secondary basis by acquiring cUSDO from cUSDO/USDC secondary markets (i.e. decentralised exchanges such as Curve) and unwrapping cUSDO to USDO using the publicly available and permissionless USDO-cUSDO wrapper smart contract.

While every effort will be made to ensure deep secondary liquidity and accurate secondary market pricing, there is no guarantee that USDO can be obtained on a secondary basis at a rate of 1 USDO : 1 USDC due to market forces of demand and supply.

What are the fees associated with minting USDO?

There are no fees for minting USDO.

What networks are USDO and cUSDO natively supported on?

USDO is natively supported on Ethereum and Base networks. cUSDO is natively supported on Ethereum and Base networks. Announcements will be made on expansion of native support to other blockchain networks.

How does my USDO balance accrue value?

A bonus multiplier will be programmatically updated daily, including weekends, to give users a fair reflection of the yield earned at a predetermined rate set by the issuer. USDO holders should expect to see their token balances increase daily due to this adjustment in bonus multiplier.