OpenEden — USDO Vault
USDO (OpenDollar) is a regulated yield-bearing stablecoin issued by OpenEden Digital, a Bermuda Monetary Authority (BMA) licensed digital asset issuer. USDO is pegged 1:1 to the US dollar and fully collateralized by tokenized U.S. Treasury Bills.
How USDO works:
- USDO is backed by OpenEden's TBILL tokens - tokenized U.S. Treasury Bills
- TBILL tokens hold a Moody's "A" rating (investment-grade) and S&P AA+ rating
- Yield is generated from U.S. Treasury Bills, providing real-world yield
- USDO is a rebasing token - your balance increases automatically as yield accrues
- Issued through a Segregated Account Company (SAC) - a bankruptcy-remote vehicle
- Real-time proof of reserves available on-chain
BNY Mellon serves as the investment manager and primary custodian for the underlying assets, providing institutional-grade infrastructure.
Basic Information
Fundamentals
TVL
APR
Statistics
| Weekly | Monthly | Quarterly | Yearly | |
|---|---|---|---|---|
| Period Start | N/A | N/A | N/A | N/A |
| Period End (inclusive) | N/A | N/A | N/A | N/A |
| APR | N/A | N/A | N/A | N/A |
| CAGR (APY) | N/A | N/A | N/A | N/A |
| TVL High | N/A | N/A | N/A | N/A |
| TVL Low | N/A | N/A | N/A | N/A |
Liquidity
Not calculated yet
Liquidity analysis will be available soon
Strategy
- Acquire USDO
- Mint USDO directly on the OpenEden platform using USDC
- Or purchase USDO on DEXs (Curve, Uniswap, Aerodrome)
- Available on Ethereum, Arbitrum, and Base
- Hold USDO to earn yield
- USDO is a rebasing token - your balance grows automatically
- Yield is derived from U.S. Treasury Bills held in reserves
- No staking or locking required - simply hold USDO
- Yield accrues daily based on current T-Bill rates
- Alternative: Hold cUSDO (wrapped version)
- cUSDO is a non-rebasing wrapped version of USDO
- Value appreciates instead of balance increasing
- Better for DeFi integrations and certain tax jurisdictions
- Available on Solana as well as EVM chains
- Redeem anytime
- Redeem USDO for USDC on the OpenEden platform
- Or swap on DEXs for immediate liquidity
- 24/7 on-chain access to redemptions
Yield Source
U.S. Treasury Bill Yield
USDO is fully backed by TBILL tokens, which represent a tokenized portfolio of short-dated U.S. Treasury Bills. The yield comes directly from the interest earned on these Treasury Bills, which are considered one of the safest investments globally as they are backed by the full faith and credit of the U.S. government.
Current yields reflect prevailing U.S. Treasury rates, typically tracking the Federal Funds Rate closely.
Rebasing Mechanism
USDO uses a rebasing mechanism where your token balance increases automatically as yield accrues. This means you don't need to claim rewards - they are reflected directly in your wallet balance.
For users who prefer non-rebasing tokens (e.g., for DeFi composability or tax reasons), cUSDO is available as a wrapped version where value appreciates instead of balance.
Institutional Infrastructure
The underlying TBILL fund is managed by BNY Mellon (Bank of New York Mellon), one of the world's largest custodian banks with over $50 trillion in assets under custody. This provides institutional-grade security and operational excellence.
Strategy Limits
Deterministic Constraints
- Yield is tied to U.S. Treasury Bill rates - if rates decrease, yield decreases
- Regulatory requirements may restrict access in certain jurisdictions
- Minting/redeeming directly on OpenEden may require KYC for large amounts
- Available on Ethereum, Arbitrum, Base, and Solana (cUSDO)
Probabilistic Constraints
- DEX liquidity may vary - large swaps could experience slippage
- Regulatory changes could impact the product's availability
- Smart contract risks exist despite audits
- Protocol is relatively new (launched February 2025)
Underlying Assets/Allocations
Risk Analysis
Potential Risks
Based on the official OpenEden risk disclosure:
- Reserve Asset Risk - Backing assets may depreciate through counterparty risks, market events, or defaults on U.S. Treasury Bonds (extremely rare but possible)
- Smart Contract Risk - Despite audits, smart contracts may contain vulnerabilities. No smart contract is entirely risk-free
- Blockchain Risk - Transactions are irreversible, which may lead to permanent loss in cases of errors or unauthorized transactions
- Regulatory Risk - Digital asset regulation is evolving. Changes could cause USDO to decrease in value or become unavailable
- Liquidity Risk - Market fluctuations may impact asset value and liquidity, especially during stressed conditions
- Banking Risk - Changes in OpenEden's banking relationships may temporarily affect deposit/withdrawal availability
- Third-Party Integration Risk - USDO's permissionless nature allows integration with unvetted third-party contracts
- Account Blocking Risk - Addresses associated with illegal activity may be blocked, resulting in loss of access to USDO
Note: No deposit insurance exists. OpenEden maintains Director & Officers and Errors & Omissions coverage.
Risk Analysis (3rd Parties)
Summary
OpenEden USDO provides access to U.S. Treasury Bill yields through a regulated, tokenized structure. The backing assets hold investment-grade ratings from both Moody's (A) and S&P (AA+), and custody is provided by BNY Mellon. The product offers institutional-grade infrastructure with on-chain accessibility. However, USDO launched in February 2025 with limited track record, and relies on centralized entities for operations. Key considerations include regulatory evolution, centralization risks, and the relatively new nature of the product.
Moody's "A" Rating: OpenEden's TBILL tokens are the first tokenized U.S. Treasury Bills globally to receive a Moody's investment-grade rating. This places them in the "upper-medium-grade" investment category.
S&P AA+ Rating: The TBILL Fund also received an AA+ rating from S&P Global, complementing the Moody's rating and providing additional third-party validation.
ChainSecurity Audit: The USDO smart contracts were audited by ChainSecurity in March 2025. No critical issues were found, and most operations are access-controlled with additional off-chain security procedures.
Regulatory Status: USDO is issued by OpenEden Digital, which holds a Digital Asset Business Act License from the Bermuda Monetary Authority (BMA). Issued through a Segregated Account Company (SAC) for bankruptcy protection.
New Protocol: USDO launched in February 2025 and has limited operational history. While backed by institutional infrastructure, the product is relatively new in the market.
Centralization Risk: Unlike fully decentralized stablecoins, USDO relies on centralized entities (OpenEden, BNY Mellon) for custody and operations. The issuer can block addresses associated with illegal activity, potentially resulting in loss of access.