$USUAL it is really sad to see the Usual price these days. Their community manager will direct the blame everyone other than thier own team and token mechanism. They never cared about Usual price. Even blamed a holder for not knowing that fact in their Discord chat. Here's the details:
🔎 What Went Wrong with USUAL
1. Unexpected Token Mechanic Changes
In January 2025, Usual Protocol introduced a “dual-path exit” for USD0++, allowing early withdrawals at a $0.87 floor (or full redemption only at maturation).
Many staked USD0++ holders expected a guaranteed $1 peg, but the sudden change dramatically reduced liquidity and stunned users.
The update led to a brief depeg to ~$0.89–$0.92, with Curve liquidity pools destabilized and causing cascading liquidations.
2. Severe Community Backlash
Users felt blindsided, saying the changes were communicated retroactively and that marketing misrepresented USD0++ as a stable 1:1 token.
Trust eroded rapidly, especially among retail investors who didn’t expect a four-year lockup and potential discounts.
3. TVL Collapse and Token Dump
At its peak in early January, TVL hit $1.9B, but fell by ~$800M within weeks.
Usual token $USUAL dropped by nearly 17% after the debacle and has struggled to regain investor confidence.
4. Inflation Pressure
USUAL distributes yield tokens to USD0++ holders, resulting in continuous inflation and selling pressure.
Coupled with the redemption distrust, this led to sustained downward momentum.
5. Governance & Transparency Issues
One controversial vote (UIP4) raised alarms when a previously inactive address suddenly cast a decisive vote using millions of USD0/USUALX tokens from the protocol treasury.
This fueled accusations of governance manipulation and further compliance concerns.
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📉 Why USUAL’s Trust Collapsed
USD0++ was intended as a four-year staking bond, not a stablecoin. However, the implied $1 redemption created unrealistic expectations.
As the protocol aligned its mechanics with true bond-like behavior, community trust unraveled—especially among yield-farmers who were caught off-guard.
Limited communication and abrupt token model revisions were simply too risky for retail investors.
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🧭 Bottom Line
While Usual had a bold token model linking governance to revenue and long-term adoption, it suffered a major blow due to mismanaged token economics, poor communication, and governance opacity.
USD0++ now trades at a discount from $1, locked until maturity or lacking full yield if redeemed early.
USUAL token lost trust rapidly and became prone to inflationary pressure and price decline.
The shift bred resentment, legal threats, and a significant exit of liquidity from the protocol.
