$USUAL Based on information from the USUAL whitepaper, here is an initial analysis of the potential upside and risks associated with the project:
What is USUAL?
USUAL is a governance and reward token associated with the Usual protocol, which seeks to democratize access to real-world assets (RWAs) through a decentralized model. USUAL works in conjunction with the USD0 stablecoin, being distributed as a reward and participation in the protocol's governance.
Pros and Upside Potential
1. Relevant Use Case:
• The protocol aims to fix common problems in the stablecoin market, such as lack of profit redistribution and difficulty in accessing real-world assets.
• USD0, the project's stablecoin, is fully backed by low-risk assets, such as Treasury bonds, increasing its security and stability.
2. Incentive for Engagement:
• The USUAL token is distributed as a reward for participating in the ecosystem (staking, liquidity provisioning, etc.), which incentivizes retention and usage.
3. Decentralized Governance:
• The model allows USUAL holders to vote on protocol decisions such as adding collateral, DAO changes, and investment strategies.
4. Scalable Economic Model:
• USUAL issuance is disinflationary, with a gradual reduction in supply proportional to protocol growth. This can increase the intrinsic value of the token over time.
5. Planned Expansion:
• The protocol intends to expand the number of collateralizable assets and introduce new products in the future, increasing the reach of the ecosystem.
6. Stability and Risk Mitigation Mechanisms:
• The system includes an insurance fund and collateral adjustment mechanisms to protect against losses in extreme cases.