$USUAL is a multi-chain infrastructure that aggregates the growing collection of tokenized real-world assets (RWA) from entities such as BlackRock, Ondo, Mountain Protocol, M0 or Hashnote, converting them into a permissionless, on-chain verifiable and composable stablecoin: USD0.

USUAL's Economic Model

The core economic model of the Usual project revolves around two main tokens:

  • USD0 (Liquid Deposit Token): A stablecoin that provides fully transparent collateral backing through custody of real-world assets (RWA) and allows permissionless user participation.

    • Minting and Redemption: Supports direct and indirect minting mechanisms to solve the entry barriers for different users.

    • Collateral management: Low-risk, transparent, and highly liquid assets are preferred as collateral, such as U.S. Treasuries or high-quality reverse repo products.

    • Bank run defense mechanism: manage the downside risk of collateral assets through insurance funds to protect the redemption rights of token holders.

  • USD0++ (Liquid Staking Token): A derivative product that obtains income and rewards by locking USD0, strengthening users' willingness to participate in the long term.

    • Users can choose to redeem early (at a cost) or wait for the lock-up period to end (2028).

    • USUAL token rewards are distributed through a token economic mechanism.

  • USUAL (governance and revenue token): The governance and incentive core of the project.

    • The distribution mechanism is linked to the actual income generated, and the supply is dynamically adjusted through the minting rate to ensure inflation control.

    • Staking (USUALx) provides additional rewards to ensure long-term user participation.

Project Advantages

  • Real World Asset (RWA) Integration:

    • Through USD0, traditional financial assets (such as U.S. Treasuries) are introduced into DeFi, increasing the integration of decentralized finance and traditional finance.

    • Provide fair access to unlicensed users and address existing stablecoin limitations.

  • Fair distribution mechanism:

    • Through USUAL’s minting mechanism, project revenue is shared with token holders rather than concentrated in centralized institutions.

    • Designs such as mortgage management, profit distribution and liquidity incentives effectively prevent interest monopoly.

  • Strong ability to resist risks:

    • Bank run defense mechanisms and insurance funds can cope with volatility in collateral assets under extreme market conditions.

    • Risk control includes technical audits, collateral transparency, and DAO’s dynamic management of risks.

  • Long-term user incentives:

    • USD0++ binds users and projects to long-term interests through a locking mechanism.

    • Staking rewards (USUALx) and flexible governance rights increase the attractiveness of holding tokens.

  • Liquidity Incentives:

    • Provide incentives for the secondary market to ensure sufficient liquidity for USD0, USD0++, and USUAL tokens.

Possible risks

  • Technical risks:

    • Security issues such as potential vulnerabilities in smart contracts and hacker attacks.

    • Potential risks can be reduced through multiple rounds of audits and monitoring, but they still need to be closely monitored.

  • Mortgage risk:

    • Although low-risk assets are selected as collateral, factors such as interest rate fluctuations, illiquidity, and credit risk may still affect the value of the collateral.

    • In extreme cases, bank run defense mechanisms and insurance funds may still fail.

  • Token Economic Risks:

    • As an incentive token, USUAL's market price fluctuations may affect the competitiveness of the ecosystem.

    • Inflationary pressures: If the token distribution mechanism is poorly managed, it could lead to a market sell-off and increased inflation.

  • Product risks:

    • USD0++’s lock-up and early redemption mechanism increases the cost of user exit and may affect the market liquidity of tokens.

    • The deviation between market price and actual value (such as depegging) needs to be calibrated through liquidity incentives and arbitrage mechanisms.

  • Governance risks:

    • Initial governance is led by the team. Although there is a commitment to decentralization, the execution of the actual transfer of governance rights is still the key.

Recently, the price and TVL of $usual have reached new highs. As of December 12, the TVL of the $usual project has exceeded 800M USD. With reference to the valuation and price of ONDO, a very similar stablecoin project, and with the advent of the bull market, the price of $USUAL in the secondary market is likely to exceed 1U or even 2U.