Example scenario (numbers)

1

Governance onboards Allocator A with:

• ceiling = 10,000,000 0xUSD, dailyCap = 1,000,000, borrowFeeBps = 500 (policy-aligned),

• assets = [USDC, DAI], pockets = [P_USDC_A, P_DAI_A], allowed = true.

2

Allocator A mints $750k 0xUSD inventory via allocatorCreditMint(A, 750_000) → now has reservedZeroX = 750k; effective debt increases accordingly.

3

A user mints 0xUSD via USDC with A’s referral code:

• UCE retains liquid buffer (subject to change) on-hand (reserve), routes remaining to P_USDC_A.

• If the user instead redeems 0xUSD to USDC with A’s referral code, UCE burns their 0xUSD and consumes A’s reservedZeroX first.

4

A repays $300k using DAI: calls allocatorRepay(DAI, 300_000e18).

• Contract skims borrow fee to treasury (per borrowFeeBps) and retires the 0x-equivalent of the principal from A’s debt.