🤔 Many newcomers are worried about the issue of 'decoupling', coincidentally catching up with the recent FUD about USUAL decoupling across the network, so we need to have a good discussion on this topic.
Everyone is worried about the 'decoupling' in three aspects:
👉 USD0 decouples from other stablecoins (such as USDC/USDT).
👉 The exchange rate of USD0++ decouples from USD0.
👉 The exchange rate fluctuations between USUALx and USUAL.
Before diving deeper, we need to understand the core underlying design of USUAL.
⭐ USD0 is a stablecoin supported by 1:1 collateralized RWA assets ⭐
The collateral assets are currently mainly short-term US Treasury products from Hashnote.
(Everyone can learn about what US Treasury bonds are, short-term US Treasury bonds (T-bills), and what overnight reverse repos (ON RRPs) are, roughly understood as: USUAL is safer than American banks.)
Based on the above design, 🌹 the real price of USD0 will always be >1 dollar 🌹
With the above consensus, we can continue to discuss 'decoupling'.
🔥🔥🔥 The exchange rate of USD0 against other stablecoins 🔥🔥🔥
💰 Gene
As analyzed earlier, because there are 1:1 RWA US Treasury assets as collateral, the exchange rate of USD0 against other stablecoins will remain stable in the long run.
💰 Arbitrage mechanism
When a short-term run on the bank causes the exchange rate to drop, the collateral issuer has a corresponding arbitrage mechanism to quickly balance the exchange rate.
For example, Hashnote whitelist users can redeem USD0 for USYC at a 1:1 ratio, using this mechanism to acquire USD0 at a low price and exchange it back for 1:1 USYC for arbitrage.
(Today's occurrence of USD0 'decoupling' perfectly demonstrates this mechanism: Hashnote whitelist users quickly initiated arbitrage, bringing the exchange rate back to equilibrium in a short time.)
💰 Separate emission quota rewards.
In the design of USUAL token economics, a separate 2.5% token emission reward is provided for USD0/USDC LP to enhance LP depth and reduce user entry and exit wear.
(In today's situation, Curve's LP pool also plays an important role in balancing the exchange rate.)
💰 Expand more application scenarios for USD0, such as stablecoin payments (already in contact with related projects, more information will be announced in the future).
The above content can completely eliminate the long-term decoupling risk of USD0/other stablecoins.
🔥🔥🔥 The exchange rate of USD0 against USD0++ 🔥🔥🔥
We need to understand that USD0++ is a liquidity yield certificate obtained after staking USD0 at a 1:1 ratio, and the earnings of USD0 will be fed back to USD0++.
Therefore, ✨ the real value of SD0++ will always be >USD0 ✨
💰 Gene
USD0++ is a four-year liquidity yield certificate for USD0, which can be redeemed at a rigid 1:1 rate for USD0 after four years, so there is no decoupling risk in the long term.
💰 Various supplementary redemption methods.
First, the current official website provides 1:1 redemption of USD0++ to USD0, with a fixed wear and tear of 0.05%, and this path is expected to last for a long time.
Secondly, two new methods will be provided in the future:
Burning USUAL tokens for redemption: Burn a small amount of $Usual tokens for a 1:1 redemption.
Price floor redemption: Users can choose to redeem at the current price floor.
The opening time for the latter two methods is to be determined, and specific details can be found in the white paper (the address of the white paper will be attached at the end of the article).
💰 Separate emission quota rewards.
In the design of USUAL token economics, a separate 2.5% token emission reward is provided for USD0++/USD0 LP to enhance LP depth and reduce user entry and exit wear.
The above content can completely eliminate the long-term decoupling risk of USD0/USD0++.
🔥🔥🔥 The exchange rate of USUALx against USUAL 🔥🔥🔥
New users often wonder why the amount of redeemable USUAL varies for the endogenous interest-bearing asset USUALx.
The answer: because the official website integrates a third-party SWAP pool.
SWAP is essentially not an exit but a turnover, so there is no 10% exit fee.
However, it will be affected by the supply and demand/slippage of the pool, causing the price to fluctuate inversely, so the price of USUALx in third-party pools varies.
The official unstake channel, the price of USUALx will only rise and not fall.
(The official website will soon display the official exchange rate fixed for easy calculation.)
If the unstake fee is 0, it is a third-party path.
The official website will calculate slippage/exit fees based on the user's input amount and automatically choose the best path for the user.
If the amount is large/slippage is too high, it will automatically select the official unstake channel, which will deduct a 10% fee.
The above causes the illusion that the redeemable amount of USUAL fluctuates between high and low.
Real situation: 🌹 Official channels will only see an increase in the USUALx price, not a decrease 🌹
In summary, USUAL will not truly decouple in the above three aspects.
I hope partners can distinguish between false information amidst malicious FUD waves, enhancing their ability to protect their assets. Don't place your wealth growth expectations in the mouths of 'teachers'; their badness is beyond your imagination.
Welcome to leave comments/private messages for communication.
Attached is the collateral asset on-chain inquiry:
https://etherscan.io/address/0xdd82875f0840aad58a455a70b88eed9f59cec7c7…
White paper address: https://docs.usual.money/resources-and-ecosystem/whitepaper…
Official Chinese TG: https://web.telegram.org/k/#@usual_asia