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What is USD₮0 (USD₮0)?

Quick Facts

  • Type: Omnichain stablecoin built on LayerZero's OFT standard
  • Peg: 1 USD₮0 = 1 USDT, backed by USDT locked on Ethereum
  • Mechanism: Lock-and-mint across supported blockchains
  • Launched: January 2025, in partnership with LayerZero Labs
  • Operator: Everdawn Labs, under license from Tether
  • Security: LayerZero v2 with Decentralized Verifier Networks
  • Purpose: Cross-chain USDT liquidity without traditional bridges

Introduction

USD₮0 is the omnichain version of Tether's USDT, designed to move dollar-denominated value natively across multiple blockchains. Rather than relying on fragmented wrapped tokens or third-party bridges, USD₮0 uses LayerZero's Omnichain Fungible Token (OFT) standard to maintain one unified supply across all connected networks.

It solves a fundamental DeFi problem: stablecoin liquidity is siloed on individual chains, creating friction, extra costs, and risk for users who need to move funds.

History & Background

USD₮0 launched on January 16, 2025, as a collaboration between Tether and LayerZero Labs. It was operated by Everdawn Labs, which was designated as the deployment partner for chains where Tether did not operate a native mint.

The project expanded rapidly, reaching over $50 billion in cumulative transfers within its first ten months — a milestone that established it as one of the fastest-growing cross-chain stablecoin networks. By 2026, USD₮0 was live on chains including HyperEVM, Berachain, Unichain, Flare, Ink, and Stellar.

How USD₮0 Works

The core mechanism is straightforward: USDT is locked in an escrow contract on Ethereum, and an equivalent amount of USD₮0 is minted on the destination chain. When a user wants to redeem, the USD₮0 is burned and the original USDT is released from the lockbox.

This lock-and-mint design means circulating USD₮0 always equals the USDT locked on-chain, which is publicly verifiable on blockchain explorers. Security is enforced by LayerZero v2, which uses Decentralized Verifier Networks and executors to validate cross-chain messages.

Tokenomics

USD₮0 is not an independent stablecoin — it is a cross-chain representation of USDT. Its value is anchored entirely to the underlying USDT locked on Ethereum, maintaining a strict 1:1 backing at all times.

There is no inflationary emission or governance token associated with USD₮0. New tokens are only minted when equivalent USDT is locked, and they are burned upon redemption, keeping the supply perfectly elastic and collateral-matched.

Circulating Supply ? 4.06 billion USD₮0
Total supply ? 4.06 billion USD₮0
Max supply ? -- USD₮0
Updated 4h ago

Ecosystem & Use Cases

USD₮0 is used across DeFi protocols for payments, trading, borrowing, lending, and yield strategies. Because it represents a single unified liquidity pool rather than isolated per-chain supply, DeFi protocols benefit from deeper and more capital-efficient liquidity.

Use cases include cross-border remittances, institutional settlement, DEX trading, and collateral in lending markets. Integrations span ecosystems like Optimism, Sei, Unichain, Berachain, and beyond, with new chains being added regularly.

Team, Governance & Community

USD₮0 is operated by Everdawn Labs under a licensing agreement with Tether. The project is backed by Tether — the issuer of the world's largest stablecoin — and LayerZero Labs, which provides the underlying messaging infrastructure.

Governance is not decentralized in the traditional DAO sense. Operational decisions are handled by Everdawn Labs, with smart contracts and multisig arrangements published publicly per chain for transparency.

Advantages

  • No traditional bridging risk: Native OFT transfers eliminate reliance on vulnerable third-party bridges.
  • Unified liquidity: One shared supply across chains improves capital efficiency for DeFi protocols.
  • Verifiable backing: Every USD₮0 in circulation corresponds to USDT locked on Ethereum, auditable on-chain.
  • Broad ecosystem reach: Active on 15+ blockchains and expanding, including emerging L2s and payment networks.

Risks & Challenges

  • Layered counterparty risk: Holders are exposed to both Tether's reserve risk and the additional LayerZero messaging layer.
  • Not a direct Tether liability: USD₮0 is a claim on locked Ethereum USDT, not a direct obligation of Tether itself.
  • Smart contract risk: The OFT contracts and escrow lockbox introduce code-level risks that do not exist with native USDT.
  • Centralized operation: Everdawn Labs controls deployment decisions, making the system less decentralized than protocol-governed alternatives.

Long-Term Vision

USD₮0 aims to transform USDT from a single-chain asset into a universal monetary infrastructure layer. The vision is for USD₮0 to become deeply embedded in payments, remittances, and institutional settlement across every major blockchain ecosystem.

By continuously expanding to new chains and integrating with more DeFi protocols, USD₮0 is positioned to be the default cross-chain stablecoin standard — bringing the liquidity depth of Tether to every corner of the on-chain economy.

Frequently Asked Questions

USD₮0 is the omnichain version of Tether's USDT, operated by Everdawn Labs. It uses LayerZero's OFT standard and a lock-and-mint mechanism to move USDT across multiple blockchains without traditional bridges.

USDT is locked in an escrow contract on Ethereum, and an equivalent amount of USD₮0 is minted on the destination blockchain. When redeemed, the USD₮0 is burned and the original USDT is released.

No. USD₮0 is a cross-chain representation of USDT, not a direct Tether liability. It is backed 1:1 by USDT locked on Ethereum, but carries additional bridge and smart contract risk on top of Tether's own reserve risk.

USD₮0 is operated by Everdawn Labs under a license from Tether. LayerZero Labs provides the underlying cross-chain messaging infrastructure via its OFT standard.

USD₮0 is available on more than 15 blockchains, including Optimism, Unichain, Sei, Berachain, HyperEVM, Flare, Ink, Stellar, and more. The network continues to expand to new ecosystems.

Security relies on LayerZero v2 with Decentralized Verifier Networks and executors that validate all cross-chain messages. Smart contract addresses and multisigs are published publicly for each supported chain.

No. Fiat redemption is not done directly through USD₮0. Users must first redeem USD₮0 for native USDT on Ethereum, then use Tether's own off-ramp programs to convert to fiat currency.

It addresses stablecoin liquidity fragmentation — the problem where USDT is siloed on individual chains, forcing users to rely on costly and risky bridges. USD₮0 creates a single, unified USDT liquidity layer across all connected networks.