DEADBOX is a multi-chain Web3 ecosystem of three interlocking tokens — $DEAD (deflationary), $uDEAD (dividend-paying), and $USDeAD (ETH-backed stablecoin) — where all fee revenue flows to the community instead of a company treasury. Live on 7 EVM chains: Base, Ethereum, Arbitrum, Optimism, BNB Chain, Scroll, and MegaETH. USDeAD additionally bridges to Monad, HyperEVM, Solana, and Tron.

$DEAD is a deflationary ERC-20 token with a fixed hard cap of 1 billion. No new tokens can ever be minted; supply only decreases through two on-chain burn sinks: minting $uDEAD (permanently burns $DEAD at a 2:1 ratio) and Grave Digging (burns 40% of reclaimed tokens from long-inactive wallets). $DEAD uses LayerZero OFT for cross-chain transfers.

How do $uDEAD dividends work?

$uDEAD is minted by permanently burning $DEAD at a 2:1 ratio (burn 2 $DEAD to mint 1 $uDEAD). Holders receive automatic ETH dividends streamed directly to their wallets from ecosystem revenue — trading fees, USDeAD vault exit fees (50% of the 1% exit fee), and USDeAD liquidation surpluses. No staking, no claiming — dividends stream automatically. Because total $uDEAD supply can only shrink, your share percentage grows over time.

What is USDeAD and how is it backed?

USDeAD is an over-collateralized ETH-backed decentralized stablecoin. It is minted by depositing WETH, wstETH, or rETH into a vault. The recommended collateral ratio is 200%; vaults below the 115% liquidation threshold become liquidatable by any user (permissionless, no grace period). The protocol charges 0% interest — only a one-time 1% exit fee, 50% of which streams to $uDEAD holders and 50% to the treasury.

What is the Deaderal Reserve Protocol?

The Deaderal Reserve Protocol (DRP) is the open, Liquity-inspired CDP protocol behind USDeAD. It consists of two core contracts: the DeaderalReserveProtocol contract (manages vaults, deposits, mints, repayments, and the liquidation lifecycle) and the Stability Pool (absorbs liquidated debt and distributes collateral gains to USDeAD depositors). Official docs: https://usdocs.dead.box/

On which chains is DEADBOX available?

DEADBOX is live on 7 EVM chains: Base (primary), Ethereum, Arbitrum, Optimism, BNB Chain, Scroll, and MegaETH. Cross-chain $DEAD / $uDEAD transfers use LayerZero OFT. USDeAD vault operations are live on Ethereum, Base, Arbitrum, Optimism, Scroll, and MegaETH (in public beta); USDeAD itself additionally bridges as a non-lending token to BNB Chain, Monad, HyperEVM, Solana, and Tron.

How is the USDeAD liquidation surplus distributed?

When a USDeAD vault is liquidated with surplus collateral above the debt, the surplus is split: 50% to Stability Pool depositors as extra yield, 24% to the Vault Distributor, 12% to the treasury, 12% to $uDEAD holders, and approximately 2% to the liquidator (watchdog) as an incentive.

Learn/Advanced

Why 0.1% of uDEAD Supply Matters

The math behind why even a small position in uDEAD can generate meaningful passive income.

7 min readAdvanced

You do not need to be a whale to earn real money from the DeadBox ecosystem. Holding just 0.1% of the total $uDEAD supply (approximately 120,000 uDEAD, worth roughly $600 at current prices) puts you in a position to earn meaningful passive income as the ecosystem grows. Here is the math.

Single Borrower Example

Consider one borrower who takes out a $45,000 USDeAD loan. When they repay, they pay a 1% exit fee, which equals $450 in fees. As a holder of 0.1% of the uDEAD supply, your share of that single exit fee is $0.45. That does not sound like much from one person, but USDeAD is designed for real-world borrowing at scale.

What Happens at Scale

Now multiply that single borrower: 10 borrowers at $45,000 each generates $4,500 in fees, earning you $4.50. Scale to 100 borrowers and it is $450 in fees to your wallet. At 1,000 borrowers, you are earning $4,500, and that is from USDeAD exit fees alone, before counting trading tax, SwitchBox fees, or DeadVault fees. Remember, these revenue streams compound. You are not choosing one source. You earn from all of them simultaneously.

The Aave Comparison

For context, consider Aave, the largest lending protocol in DeFi. If just 0.65% of Aave's borrowing volume migrated to USDeAD, that alone would generate approximately $333 per month for a 0.1% $uDEAD holder. Aave processes billions in borrowing volume. USDeAD does not need to capture even 1% of that market to generate life-changing returns for early $uDEAD holders.

Early Mover Advantage

The $uDEAD supply can only shrink over time (as $DEAD is burned, fewer can be converted). Getting in early means your percentage of the supply is locked in while the revenue potential keeps growing. The same 120,000 uDEAD that represents 0.1% today could represent a much larger percentage in the future as supply decreases.

The Flywheel Mechanics

Revenue Math & Formulas