USD0 Collateral: Adhering to Eclipse AI's Strict Risk Policy

USD0 collateral adheres to Eclipse AI's stringent risk policy, being backed exclusively by secure, short-term assets such as US Treasury Bills via overnight repos. Eclipse AI Labs has meticulously selected the initial collateral through comprehensive due diligence of market participants to mitigate any counterparty or default risks. This approach offers USD0 holders a security framework that surpasses competitors.

Initial Collateral Partnership with Hashnote

Eclipse AI's first partner for initial collateral will be Hashnote. The goal of Eclipse AI is to eventually decentralize USD0, diversifying holdings and further minimizing risks. Future collateral options will be subject to governance decisions.

Hashnote

What is USYC?

USYC is the on-chain representation of the Hashnote International Short Duration Yield Fund Ltd. ("SDYF"). SDYF invests primarily in reverse repo and U.S. Government backed securities.

Why USYC

Being invested in overnight repo means minimized market risk, duration risk, and credit risk -- as good as being in a U.S. Treasury Money Market fund, but with the transaction speed, transparency, and composability of being an ERC-20.

USYC lets you earn short-term risk free returns. Assets are deployed in reverse repo, with some allocated to T-Bills, to ensure maximum liquidity and minimum duration risk.

Liquidity

• Mint / redeem time T+0 to T+1 into USDC or PYUSD.

• Atomic on-chain instant mint / redeem available.

  • On-chain mint available only during “market hours”.

  • On-chain redemption available at any time but for limited size.

Safety

• No credit intermediaries.

• No loans to anyone.

• Fully regulated by CIMA.

• Direct access to segregated custodial account.

Transparency

• Assets and token price published via oracle feed.

• All fees such as service, redemption, and custodian fees are fully disclosed.

• ERC-20 verified on etherscan.

Fund Management

USYC is run by Hashnote, the premier on-chain institutional asset manager backed by the partners of DRW. Hashnote has an experienced in-house Fixed Income Team, with a track record of delivering consistent, risk-adjusted returns and liquidity management.

Service Providers & Regulatory Compliance

The fund's cash and securities are custodied at Bank of New York Mellon and managed by experienced portfolio and liquidity managers. Hashnote's offshore funds are licensed as mutual funds by Cayman Islands Monetary Authority (CIMA), and its U.S. fund manager is registered as a CPO with the Commodity Futures Trading Commission (CFTC).

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On-Chain Information

Token Standard	ERC-20
Available Networks	Ethereum
Address	0x136471a34f6ef19fE571EFFC1CA711fdb8E49f2b

Providers

Custody	BNY Mellon
Prime Broker	Marex
Bank	Customers Bank
Auditor	Cohen and Co
Fund Admin	NAV Consulting
KYC / AML	NAV Consulting LMO Consulting

Regulation

US Region	CFTC US-CPO for Hashnote Feeder Fund
Non-US Region	CIMA SDYF and Hashnote Master Fund registered as Caymans Mutual Funds

Future Provider

As Usual grows, we aim to diversify our collateral management. Currently, we have a single provider Hashnote, but we want to bring in new collateral providers to enhance our risk management. Firms like Ondo, Backed, M^0, Mountain Protocol, Spiko, Adapt3r and BlackRock are examples of partners we expect to work with. While we have not yet finalized new partnerships, we are actively exploring these opportunities to ensure greater stability and security for our protocol.